As competition in the global cosmetics market continues to heat up, China presents a range of promising new opportunities. During the past five years, China has been one of the world’s fastest growing cosmetics markets. According to Euromonitor data, China’s market for cosmetics grew from RMB 24.3 billion in 2014 to over RMB 42.8 billion in 2018. It’s annual growth has steadily built momentum, rising from 9.7% in 2015 to 21.7% in 2018.
China Beauty Expo continues to identify emerging trends shaping one of the world’s fastest growing markets.
Local Brands Gain Popularity in China
The growth in cosmetics purchases has been driven by a combination of upgraded consumption, increased disposable income, growing attention to appearance, and the convenience of home delivery. According to the 2018 Weibo White Paper on the Cosmetics Industry recently released by the Weibo Marketing Institute, China’s cosmetics market represented about 50% of global cosmetics sales in 2018. During the recent June 18th Chinese shopping festival, sales of cosmetics reached record highs. TMall saw sales value of the overall cosmetics category top RMB 100 million during the first 5 minutes of the sale. Men’s cosmetics sales volume soared by 522% during the first hour. Suning saw similar online sales gains with total cosmetics sales rising by 932% during the shopping festival. JD.com also launched a series of cosmetics-focused sales promotions.
Local cosmetics brands have made large gains in building market share, in many cases, outpacing their large global counterparts.
China Beauty Expo’s performance also reflects this growth. To address this growth, China Beauty Expo offered more booth space for cosmetics in Hall W3 in addition to its dedicated cosmetics hall, Hall W2. Hall W6 was also named “Cosmetics – Entry Into a New World, to meet the rising market interest.
China Beauty Expo 2019 featured international cosmetics giants such as Maybelline, Max Factor, Mistine, CANMAKE and Kissme, as well as recognized local brands such as Lansur, Qdsuh and Carslan.
Cosmetics Brands and their Suppliers Boost R&D
Soaring demand for cosmetics has also accelerated R&D within the upstream portions of the cosmetics supply chain, including among raw materials, packaging, OEM/ODM/OBM, and equipment suppliers. Some of this push for innovation and quality improvement is driven by local brands’ drive to meet Chinese consumers rising product expectations.
Major cosmetics manufacturers showcased a range of new products and technologies at China Beauty Expo 2019. Cosmax demonstrated its new patented technology in the products that it showcased at the show. For example, it’s series themed “Sweet Spring Breezes” uses its proprietary X-fine power processing technology. Its product line, “Fun Paradise” creates a youthful look, and its “Shanghai Night” line features a unique Shanghai style.
Intercos, a leading cosmetic contract manufacturer that provides R&D, production and packaging for major beauty brands also displayed an exciting range of new products at China Beauty Expo 2019. The company showed off its 3D lip balms which contain a proprietary technology, Prisma.
Generation Z Shapes New Trends and Drive Category Growth
Most segments of China’s cosmetics market are feeling the influence of Generation Z consumers. Shoppers born after 1995 have become the main purchasers of lip balms. They’re interested in red lipstick and eager to try new shades. Numerous brands exhibiting at China Beauty Expo 2019 were reinventing their positioning and packaging to increase their appeal to young consumers.
Lip products continued to surpass other categories in the cosmetics market. But categories such as eye shadow, highlighter, and loose powder have also shown impressive growth, as Chinese consumers add new make-up steps into their daily routines. According to Grand View research, the value of the global eye makeup market is expected to reach US$21.41 billion by 2015. Eye shadow products are expected to be the fastest growing category with an average annual growth rate of 6.2% between 2018 and 2025.
Makeup tools were also a very popular category at China Beauty Expo 2019. This interest reflects consumers deeper understanding of make-up routines and local brands growing awareness in the importance of make-up tools.
Stay on top of the latest trends in China’s cosmetics market. Visit China Beauty Expo