Retail in Asia

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China’s make-up market to reach US$8.9 billion by 2025


China’s make-up market is forecast to be worth nearly US$9 billion by 2025, on the back of strong face make-up sales and the influence of social media, according to research firm, GlobalData.

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The Asian giant’s make-up market is projected to grow from US$5.9 billion in 2020 to US$8.9 billion by 2025 at a compound annual growth rate (CAGR) of 8.3 percent through 2025, according to GlobalData’s ‘China Make-Up – Market Assessments and Forecasts 2025’ report.

The report stated that make-up sales growth will be driven by growth in the face make-up category, which is forecast to register the fastest value CAGR of 9.2 percent, from 2020–2025. Likewise, the eye make-up is the second biggest category, projected to record a CAGR of 7.9 percent during the same period, the report said.

Interestingly, the report also highlighted the role of social media, revealing that make-up preferences of Chinese consumers are highly influenced by exposure to social media, via platforms such as Bilibili.

“The beauty and personal care business is seeing a surge in demand for higher-quality, luxury, high-end brand items as a result of rapid urbanisation, rising disposable income, and social media exposure. Social media and influencers play a key role in the growth of local brands,” said Sukanyashri Kabali, Consumer Analyst at GlobalData.

“For instance, an online cosmetics brand, Chando partnered with a video sharing platform Bilibili with an average monthly user base of 223.3 million in Q1 2021, and is expected to reach 400 million users by 2023. Chando garnered popularity through this platform and ranked fifth in the beauty category on the e-commerce platform,” continued Kabali.

By channel, online retail remains the leading distribution channel in the Chinese make-up market, accounting for a share of 36.7 percent of value sales in 2020, followed by department stores and hypermarkets & supermarkets with shares in the market of 22.5 percent and 13.8 percent, respectively.

By brand, L’Oréal, LVMH and Amorepacific were the top three companies in the Chinese make-up market by value in 2020, while Maybelline and L’Oreal Paris were the leading brands. However, consumers in China are registering a growing interest in traditional Chinese style and culture, which is in turn playing out in local cosmetics preferences; something that make-up brands, in particular Chinese brands, are adapting to.

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“Domestic brands such as Florasis are launching products made using traditional Chinese recipes and ingredients, such as herbal extracts and flower essence, with a focus on heritage,” added Kabali.

“For example, the company’s 2020 launch of the Floral Dewy In-Porcelain lipstick was inspired by the ancient Chinese porcelain arts culture,” continued Kabali.