Skin and hair care in China’s market

Yet, it still has a huge potential for growth because of its largely untapped nature. Disposable income among the urban middle class has been increasing rapidly, and the country’s 1.3 billion-strong population offers a large consumer base. These factors, if nothing else, position China as a very attractive market to manufacturers of personal care products, both local and international. Within the domestic C&T market in China, skin care and hair care are the two largest segments in terms of revenue generation. These two sectors contribute more than 50% of total sales within the local personal care industry, and are expected to grow rapidly over the next few years. This article reveals a closer look at the skin care and hair care markets in China, and the wealth of opportunities that are available for cosmetics and toiletries businesses looking to serve the ever-important Chinese consumer.

Skin care

Skin care dominates the overall C&T market in China as it represents 36% of all personal care items that are available. The most popular items within this segment are facial moisturisers, followed by facial cleansers. And with the Chinese becoming more willing to invest in their appearances, the skin care product market is expected to reach US$77.84 billion by 2012. A number of trends have emerged in recent years. First, skin care products with anti-ageing properties grew in popularity last year (2010), according to a report by international research firm, Euromonitor. These formulations claim to repair the DNA of damaged skin, thereby slowing down the process of skin ageing and reducing wrinkles. When these products first appeared in the market, the primary consumers were mid- to high-income women in their 40s and 50s who were concerned about maintaining a youthful appearance. But with more young ladies becoming increasingly conscious about preserving their looks, the demand for antiageing products has since shifted to include those in their 20s and 30s. Skin whitening solutions are also very much in vogue. In China, females are indeed the fairer sex, because a pale complexion is considered an attribute of beauty. Women of all ages strive to attain this standard, which has led to skin whitening solutions becoming popular among both the young and old. Industry experts agree that anti-ageing and whitening products will continue to be in demand. Cosmetic manufacturers should take advantage of these trends and develop innovative formulations that help whiten and nourish skin, or even do both. In addition, brand owners should consider exploring the market for such goods in China’s mid- to lower-end cities where women are becoming more cosmetic-savvy about keeping their skin looking young and fair, but have less access to global or larger brand names than consumers in top-tier cities. Another key point to note is that consumers of the cosmetics and toiletries market are not limited to women. A key area of growth within the skin care sector is men’s products, because Chinese males are now more concerned than ever about their appearances and the importance of projecting an image of success, which - some believe - starts with good looking skin. As more men become accustomed to the idea of keeping up their appearances, the skin care product segment will no doubt continue on an upward trend. In fact, Euromonitor expects the Chinese domestic market for skin care goods to grow at a greater rate than that in North America and Europe. Skin care producers will want to continue investing in this area, developing and marketing products that are suited to the specific skin care needs of men.