Cosmetic Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cosmetic Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Chinese cosmetic products market is projected to register a CAGR of 13.76% during the forecast period (2021 - 2026).

The beauty industry (comprising skin care, color cosmetics, hair care, fragrances, and personal care) has been shocked by the COVID-19 crisis. First-quarter sales have been weak, and there have been widespread store closures. The industry has responded positively to the crisis, with brands switching their manufacturing to produce hand sanitizers and cleaning agents and offering free beauty services for frontline response workers.

Cosmetic products have become an essential part of Chinese consumers’ everyday life. These cosmetic products are labeled and manufactured keeping in mind the regulations specified by government bodies, to guarantee product safety.

Consumer demand for enhanced functionality and eco-friendliness in cosmetic design is resulting in exciting innovations in the packaging and design of cosmetics products. Packaging manufacturers are offering a wide variety of innovative choices and creative technologies to serve the market. Various big companies are showing innovative changes in packaging and design.

For instance, Procter & Gamble recently announced a major shift to plant-derived packaging for some of its leading global cosmetic brands and is using sugarcane-derived plastic from Brazil’s Braskem. In addition, L’Oréal recently helped reduce the environmental impact of its packaging by introducing two new assessment tools, namely Sustainable Packaging Scorecard (SPS) and Packaging Impact Quick Evaluation Tool (PIQET), to its package design process.

Key Market TrendsHair Styling and Coloring Products​ Hold a Significant Share in the Market

In China, more women are joining the workforce, thus driving the instinct of looking good at the workplace. Interestingly, the cosmetics industry has also witnessed a surge in demand among men, owing to factors, such as awareness, the importance of grooming, and the presence of a greater number of women at the workplace. Within the cosmetics category, hair is considered as the foremost element that establishes the individual style and spells a fashion statement. Thus, the industry has witnessed the demand for styling products and hair colors increasingly. Products with natural ingredients, especially fruit- and plant-based products, are in high demand. For example, L’Oréal launched Garnier Olia Coloration Permanente with 60% natural flower oils in a non-drip cream.

Supermarkets and Hypermarkets Remain the Largest Distribution Channel

The supermarkets/hypermarkets segment of the market studied holds the largest share, indicating consumer preference toward this segment. Owing to high consumer demand, major supermarkets are expanding the range of cosmetics, representing a diversity in the products. The growth observed in the supermarkets segment was led by the appeal it creates among boomers seeking for safe exploration of various cosmetic products formulated with innovative technology and packaging. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of consumers. Selling the products through supermarkets signifies the transaction building strategy of the seller as it leads to increased impulse purchases of consumers.

Competitive Landscape

The Chinese cosmetic products market is strongly dominated by foreign players. The major key players are L’Oreal Group, Avon Products Inc., the Estée Lauder Companies Inc., Shiseido Co. Ltd, Dior, Yves Rocher International, and Oriflame Holding AG, among others. Product innovation remains the most adopted strategy among the plyers in the country. The advanced and diversified distribution networks of the global players give them an upper edge to expand their range of products across the country.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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