Skincare sales are anticipated to resurge in China, thanks to the easing of pandemic restrictions and the economy recovering strongly on the mainland.
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According to GlobalData’s ‘China Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021 to 2026’, the skincare market in China is projected to grow at a compound annual growth rate (CAGR) of 5.1 percent from CNY230.1 billion (US$35.7 billion) in 2021 to CNY295.5 billion (US$46.3 billion) by 2026.
By category, China’s skincare market growth will be primarily driven by the hand care segment, which is set to register the fastest value CAGR of 6.3 percent over 2021 to 2026, followed by the depilatories category with a projected CAGR of 5.6 percent.
“As Covid restrictions on public outdoor mobility and on-premise venues are relaxed, the resumption in social gatherings, mass public events, and tourism activities will drive demand for skincare,” said Anush Shaw, Consumer Analyst at GlobalData.
“The resurgence in out-of-home social gatherings will encourage consumers to augment their skincare routine and look their best. China’s facial care category is one of the largest in the world, and major brands are targeting high growth areas such as anti-aging and skin repair creams with natural ingredients.”
By channel, online retail was the leading distribution channel in the Chinese skincare market in 2021, followed by health & beauty stores.
The per capita expenditure (PCE) on skincare of Chinese consumers rose from US$6.6 in 2016 to US$12.5 in 2021, surpassing the global average (US$9.8) and the regional average (US$9.2). Looking ahead, the PCE on skincare in China will reach US$16.2 by 2026, according to the report.
L’Oréal, Shanghai Pechoin Daily Chemical and Mary Kay were the leading companies in the Chinese skincare sector in 2021, while Pechoin, Mary Kay and Artistry were the top brands of the year, said GlobalData.
“Chinese consumers are growing increasingly experimentative and willing to try innovative products and pay more for premium products with better formulations,” added Shaw.
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“New product launches and accompanying marketing activities will play a pivotal role in accelerating demand for skincare products. In the immediate future, orders for skincare products through the e-retailer channel will continue to rise as the pandemic-induced habit of online shopping will stick even as the pandemic dissipates,” Shaw concluded.