China Beauty Expo 2019 attracted more than 3,500 cosmetics companies from over 40 countries and regions to Shanghai between May 20th and 22nd. The event’s tremendous growth mirrors the growth that China’s cosmetics market continues to experience, making it the world’s second largest beauty market by the end of 2018.
According to the National Bureau of Statistics, China’s total cosmetics retail volume reached RMB 261.9 billion in 2018, an increase of 9.6% over the prior year. In the first quarter of 2019, the total cosmetics retail volume topped RMB 75.3 billion, up 10.9% compared with the same prior year period. Recent government policies have helped to fuel the latest phase of growth in China’s cosmetic market, adding to China’s tax base and employment rolls. China Beauty Expo has identified several notable trends:
Young Consumers and Lower Tier Cities are Market Drivers
As consumers between 18 and 24 gain spending power, they have become a major engine for sales growth. Similarly Alimama statistics find that 3rd Tier and lower cities are the fastest growing markets for cosmetics. China Beauty Expo estimates that there are more than 160,000 cosmetics stories in 3rd tier or lower cities across China. These stores have rapidly emerged as a major cosmetics distribution channel, representing nearly 30% of the market.
Local Cosmetics Brands Are Catching Up
Local brands have seen steady increase in overall share of the cosmetics market. In segments such as facial masks and herbal skincare, local brands have caught up with international players, leveraging their unique strengths.
According the In-depth China Internet + Cosmetics Industry Research and Investment Opportunities Analysis Report by Qianzhan Industry Research Institute, local brand market share among the top 20 cosmetics brands increased by 10% between 2011 and 2019.
Imports Continue to Boom in an Increasingly Level Playing Field
On July 1, 2018, China reduced import tariffs on 1,449 consumer products. The average tariff on cosmetics such as skin care and hair care products dropped from 8.4% to 2.9%. In 2018, China’s first China International Import Expo attracted more than 3,000 exhibitors from over 130 countries. These measures have combined to further open the market to imported brands. According to China customs data, the value of imported cosmetics in 2018 reached RMB 65.7 billion, an increase of 67.5%. China Beauty Expo 2019 saw a 50.6% increase in the number of international exhibitors reflecting a similar trend.
Cosmetics Products Are Adding Technology to Become More Competitive.
Sang Jingmin, Chairman of the Organizing Committee of the China Beauty Expo, noted that China Beauty Expo has been emphasizing the “important role of technology in the success of beauty brands” since 2015. Through its collaboration with cosmetics associations in 18 countries and regions, China Beauty Expo has organized more than 30 forums that focus on technological advances and trends in China’s beauty industry.
China Beauty Expo is Organizing Events in Belt and Road Initiative Countries and Regions
Since the launch of the Belt and Road Initiative in 2019, China Beauty Expo has launched a series of programs to promote BRI-related technological exchange. It organized the Smart Cosmetics Manufacturing Program in 2013. More recently, China Beauty Expo has organized beauty events in countries such as France, Italy, Japan, South Korea, Singapore, Thailand, and Indonesia to help Chinese cosmetics companies enter new markets. China Beauty Expo also works with cosmetics associations in Asia to invite professional visitors to Shanghai and facilitate trade opportunities.
Learn more about the on-going innovations at China Beauty Expo.
Great event where you can see global trends especially in Chine and Asian market. Interesting facts that are continuously growing as a total percentage of whole industry. Good job China. Go ahead!
Posted by: αρώματα | 08/22/2019 at 18:32