Sectoral Capsule - Cosmetic Care Market in China (2014-2018)
The beauty and cosmetic market in China is the second largest in the world, driven primarily by demand for premium products. It is characterized by demand for masstige and premium products, which has outpaced the growth of mass cosmetic products. The cosmetic market in China is estimated to register a CAGR of 22 percent through 2014-2018 and clock turnovers worth USD 71.38 billion in 2018.
The cosmetic market in China is also stimulated by the growth of men’s skin care segment. Men in China have realized the benefits of use of cosmetics, and have become daily users of beauty and skin care products.
Hypermarkets, health and beauty retailers and department stores were the three most popular retail sales channels for beauty and personal care products in China until 2012. Since then, however, the market share of department stores and grocery retailers has been steadily declining, while internet retailing witnessed an upsurge.
Like most other merchandise, online transaction of cosmetic products is also growing at an exponential rate. More than 80 percent of these shoppers are in the age group of 20 – 39 years and nearly 90 percent of them are female. Several websites offer cosmetic products in China. The most popular ones include Tiantian.com, Jumei.com and Lefung.com. The Consumer-to-consumer (C2C) platform (online auction portal) accounts for 63 percent and Business-to-Consumer (B2C) platform accounts for 37 percent of the market pie.
Anti-aging and sun care products are gaining popularity especially among elder population. Demand for male skin care product is booming in China and is currently the largest market for men’s skin care product globally. With the rise in disposable income and increased awareness among men about beauty products, the segment is expected to grow further in the next five years. On the flip side, according to industry experts, the shampoo and other hair care products are on the verge of saturation and are expected to register negative growth in 2014.