Chinese make-up market to reach US$8.9 billion by 2025
China's make-up market is projected to grow from US$5.9 billion in 2020 to US$8.9 billion by 2025 at a compound annual growth rate (CAGR) of 8.3 percent through 2025, according to GlobalData, a leading data and analytics company.
The report, ‘China Make-up - Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the face make-up category, which is forecasted to register the fastest value CAGR of 9.2 percent during 2020–2025. The category is followed by eye make-up, which is projected to record a CAGR of 7.9 percent during the same period.
The report equally shared that e-retailing was the leading distribution channel in the Chinese make-up market accounting for a value share of 36.7 percent in 2020, followed by department stores and hypermarkets and supermarkets with shares of 22.5 percent and 13.8 percent, respectively.
L'Oréal S.A., LVMH Moet Hennessy - Louis Vuitton and Amorepacific Corporation were the top three companies in the Chinese make-up market by value in 2020, while Maybelline and L'Oreal Paris were the leading brands.
According to the report, social media is currently influencing the make-up preferences of Chinese consumers.
“The beauty and personal care business is seeing a surge in demand for higher-quality, luxury, high-end brand items as a result of rapid urbanization, rising disposable income, and social media exposure. Social media and influencers play a key role in the growth of local brands,” said Sukanyashri Kabali, consumer analyst at GlobalData.
“For instance, an online cosmetics brand, Chando partnered with a video sharing platform Bilibili with an average monthly user base of 223.3 million in Q1 2021, and is expected to reach 400 million users by 2023. Chando garnered popularity through this platform and ranked fifth in the beauty category on the e-commerce platform JD.com.”
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