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

China Cosmetic Products Market is segmented by Product Type (Color Cosmetics and Hair Styling and Coloring Products), Category (Mass and Premium), and Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Pharmacy and Drug Stores, Online Retail Stores, and Other Distribution Channels). The report offers market size and forecasts in value (USD million) for the above segments.

China Cosmetic Products Market Snapshot

China Cosmetics Products Market Summary
Study Period: 2016 -2027
Base Year: 2021
CAGR: 13.76 %
China Cosmetics Products Market Major Players

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Market Overview

The Chinese cosmetic products market is projected to register a CAGR of 13.76% during the forecast period (2022 - 2027).

The beauty industry (comprising color cosmetics, hair styling, and hair coloring products) 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 manufacturing to produce hand sanitizers and cleaning agents and offering complimentary beauty services for frontline response workers. For prestige brands, the manufacturers saw 55 to 75 percent declines in cosmetic and fragrance purchasing in 2019 versus a year ago. However, when consumers started returning to work, Alibaba reported eye-cosmetic sales increased 150 percent, month over month, during the week of February 18, 2020, in China. Also, U.S. Department of Commerce data showed that in 2020, the U.S. exported USD 838 million of personal care and cosmetic products to China, up 2.2% from the previous year.

Growth in consciousness about external beauty along with an individual’s internal intellect has become one of the major driving factors for the use of cosmetics in the China market. Presently, along with women, there is a rise in the use of cosmetics among men in their daily routine, which complements the growth of the cosmetics market demand. Hence, such changing lifestyles have led to the growth of the China cosmetics market.

In addition, increasing consumer demand for plant-inspired and premium botanical ingredients coupled with multi-functional properties in natural cosmetics, such as anti-aging, anti-wrinkle, or scars removing claims, is another key factor driving the organic men’s grooming products market in China.

Scope of the report

"Cosmetic products" are the substances or mixtures intended to be placed in contact with the various external parts of the human body (epidermis, hair system, nails, lips, and external genital organs) with a view exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or correcting body color and/or protecting them or keeping them in good condition. The market studied is segmented by product type, category, and distribution channel. Based on product type, the market studied is segmented into color cosmetics, hairstyling, and coloring products. Based on the category, the market studied is segmented into mass and premium products. Based on the distribution channel, the market studied is segmented into hypermarkets/supermarkets, specialty stores, convenience stores, pharmacy and drug stores, online retail stores, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Product Type
Color Cosmetics
Facial Make-up Products
Eye Make-up Products
Lip and Nail Make-up Products
Hair Styling and Coloring Products
Hair Colors
Hair Styling Products
By Category
Mass
Premium
By Distribution Channel
Hypermarkets/Supermarkets
Specialty Stores
Pharmacy and Drug Stores
Online Retail Stores
Other Distribution Channels

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Key Market Trends

Rising Demand for Natural and Clean-Label Cosmetic Products

The natural and clean-label cosmetic products category growth is driven by increasing consumer awareness of the side effects of usage of animal-derived ingredients, and increasing demand from mainstream consumers across the country for vegan-certified products is expected to push the revenue generation in the China market. The natural cosmetics market includes all types of vegan, clean-label, organic, 100% plant-derived, non-GMO, and very minimally processed beauty products.​ In addition, the country witnessed a significant increase in household expenditure, an inclination of people toward spending on appearance, and an increasing settlement of the ex-pat population in the country. Also, rising R&Ds by the market leaders in the sustainable packaging of such natural cosmetic products further bolstered the market growth. For instance, Procter & Gamble recently announced a significant shift to plant-derived packaging for some of its leading China 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.

China Cosmetics Products Market : Natural and Clean-Label Skincare Products Sales, in CNY, China, 2016-2020

Online Retail Stores is the Fastest Growing Distribution Channel

The fastest-growing channel for cosmetics sales in China by far is online retail. The increasing popularity of online channels reflects both limited access to retail stores and a lack of brand diversity in China’s Tier 2 and 3 cities. This surge in online sales is driven by the significant advantages of selling through cross-border channels, where products are shipped directly from foreign manufacturers and distributors straight to consumers through bonded warehouses or a pre-approved customs channel, as opposed to traditional brick-and-mortar storefronts.

China’s e-commerce platforms are increasingly influential in impacting consumer purchases by providing a platform for the beauty community to share shopping and product experiences. For example, according to the International Trade Administration, U.S. Department of Commerce, the social media and e-commerce platform Xiaohongshu (Little Red Book) has attracted over 200 million users. These users, predominantly female and under 26, fit into the target demographic for imported cosmetic product sales. Among online channels, live streaming has rapidly grown into a major sales platform for cosmetics, often marketed to smartphone-savvy consumers who shop via this method. Livestreaming, which doubled its market share from 2019 to 2020 and now makes up roughly 10% of Chinese e-commerce, will be an integral part of any successful multi-channel sales strategy.

China Cosmetics Products Market : Market Share (%), By Distribution Channel, China, 2021

Competitive Landscape

Foreign players strongly dominate the Chinese cosmetic products market. 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. Manufacturers are changing their product branding and advertising strategies to accelerate sales across various countries. Innovative strategies such as new product launches with natural ingredients and appealing packaging have been adopted by manufacturing companies to increase sales of their cosmetics products. Furthermore, the advanced and diversified distribution networks of the market players give them an upper edge to expand their range of products across the country.

Major Players

  1. L'Oréal S.A.

  2. Shiseido Co. Ltd

  3. Estée Lauder Companies Inc

  4. Amorepacific Group

  5. Christian Dior SE

China Cosmetics Products Market Concentration

Recent Developments

  • In September 2021, Valentino Beauty, the luxury cosmetics brand licensed by L’Oreal Group, launched the Chinese mainland’s first offline store in Shanghai’s Xintiandi. The flagship store showcases cosmetic products, including the 50 colors of Valentino V lipsticks, foundation, eye makeup, perfume, and other beauty accessories, with a beauty expert in each sector.
  • In September 2020, L’Oréal Paris Professionnel unveiled its first flagship hair salon in China in Shanghai. The new hair salon is the first flagship salon operated by a professional hairdressing brand, with a full range of hair colors, different textures, and styles. It also includes an augmented reality facility to try new hair colors and a haircare steam pod styler.
  • In December 2019, Christian Louboutin Beauty launched a flagship store on Tmall – marking the Parisian beauty house’s first official sales channel in China. The cosmetic brand said the Tmall flagship offers a full-line assortment of lipsticks packaged in ornate gold and black cases inspired by ancient Babylonian aesthetics, as well as nail lacquer, eye shadow, and fragrance collections.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Color Cosmetics

        1. 5.1.1.1 Facial Make-up Products

        2. 5.1.1.2 Eye Make-up Products

        3. 5.1.1.3 Lip and Nail Make-up Products

      2. 5.1.2 Hair Styling and Coloring Products

        1. 5.1.2.1 Hair Colors

        2. 5.1.2.2 Hair Styling Products

    2. 5.2 By Category

      1. 5.2.1 Mass

      2. 5.2.2 Premium

    3. 5.3 By Distribution Channel

      1. 5.3.1 Hypermarkets/Supermarkets

      2. 5.3.2 Specialty Stores

      3. 5.3.3 Pharmacy and Drug Stores

      4. 5.3.4 Online Retail Stores

      5. 5.3.5 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 L'Oreal SA

      2. 6.4.2 Shiseido Co. Ltd

      3. 6.4.3 Estee Lauder Companies Inc.

      4. 6.4.4 Amorepacific Group

      5. 6.4.5 Christian Dior SE

      6. 6.4.6 Oriflame Holding AG

      7. 6.4.7 Yves Rocher International

      8. 6.4.8 Avon Products Inc.

      9. 6.4.9 Henkel AG & Co. KGaA

      10. 6.4.10 Yatsen Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability
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Frequently Asked Questions

The China Cosmetic Products Market market is studied from 2016 - 2027.

The China Cosmetic Products Market is growing at a CAGR of 13.76% over the next 5 years.

L'Oréal S.A. , Shiseido Co. Ltd, Estée Lauder Companies Inc, Amorepacific Group, Christian Dior SE are the major companies operating in China Cosmetic Products Market.

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