China Personal Care Packaging Market Size

China Personal Care Packaging Market Analysis

The Chinese personal care packaging market is expected to register a CAGR of 6.72% during the forecast period of 2022-2027. The personal care market in China has been one of the fastest-growing sectors in the last few years, benefitting from an increasingly engaged consumer base, which is augmenting the growth of the market studied. In a background of diminishing economic growth and a tangible downturn in the willingness of Chinese consumers to spend, China's cosmetic sector is a bright point that has maintained impressive growth. For instance, according to China's National Bureau of Statistics (NBS), the retail sales of cosmetics in China amounted to CNY 30.99 billion in November 2021.

• According to the same study, the cosmetics industry witnessed a significant decrease in revenue during the first months of 2020 due to the COVID-19 pandemic, which generally affected consumer goods sales. However, due to China's effective pandemic management, the retail trade value quickly recovered. In addition, the changing attitude among men toward skincare fosters the booming of the men's cosmetics market in China.
• The country has quickly gained on the United States in beauty sales and is set to overtake it by 2023, even if growth slows. Consumer spending on cosmetics and personal care products continues to grow, which is facilitating the trend toward adopting processed, packaged, and expensive products. Skincare and decorative cosmetics are growing soundly, with facial care and medical skincare witnessing a robust demand. Moreover, growth potential is also provided by anti-aging products and those intended to protect against environmental pollution.
• According to Tmall Innovation Center, the young women of the post-90s generation have become the most crucial consumer group driving growth in China's cosmetic sector. The post-90s generation has independent consuming power and a simultaneous surge of interest in beauty and skincare amongst this demographic has translated into significant growth. This is aiding the growth of the cosmetic packaging market in the country.
• To cater to the increasing demand, the players in the industry are strengthening their manufacturing capabilities in the country to tackle new opportunities. For instance, in 2020, Albéa, a cosmetic packaging company, began the operations of its new manufacturing facility in China on the lookout to capitalize on the growing e-commerce opportunities. Also, in July 2021, AptarGroup Inc. and YAT, an online skincare solutions company, collaborated to develop an innovative range of products and services for the skincare market.
• However, the investments involved in developing the design for new packaging are significantly higher as the costs go up in changing the product design according to the current market trends and consumer requirements. This is challenging the growth in the market as product vendors may stick to their existing packaging designs in the wake of incurring higher costs associated with the change of design and production costs.