Skincare sales in China are predicted to be worth US$42.7bn by 2024, on the back of rising disposable incomes and growing skincare awareness and the desire to look good Asia’s largest economy.
As a result, China’s domestic skincare segment is set to record a compound annual growth rate (CAGR) of 6.2% until 2024, according to data and analytics firm GlobalData.
Skincare in China will be significantly driven by the growth in the hand care category, which is forecast to register the fastest CAGR of 6.7% during 2019–2024. Hand care sales are closely followed by facial care, which is expected to record a CAGR of 6.2% during the next five years.
In value terms, facial care was the largest skincare category in 2019, followed by hand care.
“The combined effect of the growing inclination towards looking good, effects of pollution and the need to address individual skin problems is prodding consumers to use a variety of skincare products, fueling growth in the sector. Manufacturers’ efforts to lure in more consumers, both young and old with targeted products is lending further traction,” said Anchal Bisht, Consumer Analyst at GlobalData.
By brand, Mary Kay, Artistry and L’Oréal were the most popular in China in 2019, with hypermarkets and supermarkets named the leading distribution channel, with a value share of 19.2% in 2019. That was closely followed by department stores and direct sellers channel.
However, private labels are growing at a higher CAGR than well-known brands, pushed on by affordability, which will appeal to consumers in the Chinese skincare market looking forward.
“On the back of rising disposable incomes and growing awareness, the Chinese skincare sector is poised to record sizable growth in the coming years. There has been an upsurge in the demand for high quality facial creams, body moisturizers, anti-aging and hand care creams, a trend expected to remain pertinent in years to come and fuel the skincare sector growth,” added Bisht.