China’s cosmetic and toiletries industry is booming amid recession as Chinese consumers are still opting for high-end products being as conscious about their skin as ever.
The cosmetics and toiletries industry in China is growing as young Chinese women spending lavishly on the beauty products amid economic turmoil, as reported by Shanghaidaily.
In 2008, China stood third globally in terms of sales of skin-care, makeup products and cosmetics, behind Japan and the US. According to the China Association of Fragrance, Flavor and Cosmetics Industries, the nationwide sales of these products are expected to reach 130 Billion Yuan (US$ 19.1 Billion) in 2009.
Sales of skin-care products are doing well in the country, as the Chinese people are very conscious about their skin. Skin-care products account for 75% of the total cosmetic sales in the country whereas it is 50% in the western countries.
As per our new report “Cosmetics and Toiletries Market in China”, the hair care market is projected to grow at a CAGR of over 17% during 2009-2012, which is the highest growth rate among all the industry segments analyzed in the report.
Although the sales of high-end products have almost stabilized, the Chinese consumers are not giving up spending on expensive cosmetic products and are showing less interest in mass-marketed products. Industry experts believe that even if consumers show reluctance towards spending on high-end products, they will remain inclined towards small items.
It will be extremely difficult for domestic players to gain market share as multinational companies have already penetrated deep into the Chinese market. Thus, it will be a tough task for the local firms to give a fight to these giants. Soaring demand is opening a gate of opportunities for regional suppliers to enter the market.
According to a Research Analyst at RNCOS, “Cosmetics demand in China has witnessed a rapid expansion in the past decade. The sales figure for January-March 2009 indicates that the Chinese cosmetics market will continue to grow at a relatively fast pace, thought the growth may not be as rapid as seen in 2008. Also, 2009 is an important year from the investment point of view in China’s cosmetic manufacturing industry and to benefit from the lower costs in the country.”
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