GlobalData : Strong economic recovery to drive Chinese skincare market growth at 5.1% CAGR through 2026, forecasts GlobalData

26 Apr 2022
Strong economic recovery to drive Chinese skincare market growth at 5.1% CAGR through 2026, forecasts GlobalData Posted in Consumer

With the pandemic restrictions easing up and the economy recovering strongly, the skincare sales are anticipated to resurge in China. Against this backdrop, the skincare market in China is projected to grow at a compound annual growth rate (CAGR) of 5.1% from CNY230.1bn ($35.7bn) in 2021 to CNY295.5bn ($46.3bn) by 2026, says GlobalData, a leading data and analytics company.

GlobalData's report, 'China Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026' reveals that the market growth will be primarily driven by the hand care category, which is set to register the fastest value CAGR of 6.3% over 2021-2026, followed by the depilatories category with a projected CAGR of 5.6%.

Anush Shaw, Consumer Analyst at GlobalData, says: "As COVID restrictions on public outdoor mobility and on-premise venues are relaxed, the resumption in social gatherings, mass public events, and tourism activities will drive demand for skincare. The resurgence in out-of-home social gatherings will encourage consumers to augment their skincare routine and look their best. China's facial care category is one of the largest in the world, and major brands are targeting high growth areas such as anti-aging and skin repair creams with natural ingredients."

'E-retailers' was the leading distribution channel in the Chinese skincare market in 2021, followed by health & beauty stores.

The per capita expenditure (PCE) on skincare of Chinese consumers rose from $6.6 in 2016 to $12.5 in 2021, surpassing the global average ($9.8) and the regional average ($9.2). The PCE on skincare in China will reach $16.2 by 2026.

L'Oréal S.A., Shanghai Pechoin Daily Chemical Co., Ltd., and Mary Kay, Inc. were the leading companies in the Chinese skincare sector in 2021. Pechoin, Mary Kay and Artistry were the top brands of the year.

Shaw concludes: "The economic recovery, rising household disposable incomes, and revival in consumer confidence will bolster the growth of the Chinese skincare sector. Chinese consumers are growing increasingly experimentative and willing to try innovative products and pay more for premium products with better formulations.

"New product launches and accompanying marketing activities will play a pivotal role in accelerating demand for skincare products. In the immediate future, orders for skincare products through the E-retailer channel will continue to rise as the pandemic-induced habit of online shopping will stick even as the pandemic dissipates."