With the easing of pandemic restrictions and the strong economic recovery, skin care sales are expected to re-emerge in China.
$35.7 billion market in 2021
Against this backdrop, the skincare market in China is expected to grow at a compound annual growth rate (CAGR) of 5.1%. from CNY230.1 billion ($35.7 billion) in 2021 to CNY295.5 billion ($46.3 billion) by 2026, according to GlobalData, a leading data and analytics company.
Cosmetics Market in China
GlobalData's report, "China Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026", reveals that market growth will be primarily driven by the hand care category, which is expected to register the highest CAGR. fast growth of 6.3% over 2021-2026, followed by the hair removal products category with a projected CAGR of 5.6%.
Anush Shaw, consumer analyst at GlobalData, says:
As COVID restrictions on public outdoor mobility and on-site venues are eased, the resumption of social gatherings, mass public events and tourist activities are driving the demand for skincare. The resurgence of out-of-home social gatherings will encourage consumers to up their skincare routine and look their best. The facial care category in China 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.
"Online retailers" were the top distribution channel in China's skincare market in 2021, followed by health and beauty stores.
Per capita spending (PCE) on skincare by Chinese consumers increased from $6.6 in 2016 to $12.5 in 2021, exceeding the global average ($9.8) and the regional average ($9.2 dollars). China's skincare PCE will reach $16.2 by 2026.