The cosmetics industry currently stands at US 52,844 Million in China and the market is expected to grow at a CAGR of 8.7% in the forecast period of 2020-2023. The personal care segment is the largest segment in this market with a market volume of USD 23,479 Million. China is the second-largest cosmetics market after the US in terms of consumption and revenue. China is undergoing rapid growth due to the increase in premium cosmetics and the increasing number of working women population. All these factors are expected to increase the growth of the cosmetics market in China by 2024.

The beauty market is facing an uprising demand due to an increase in urbanization and consumption. Skincare products are accounted for 55% of the revenue followed by Hair Care products account for 15% in the Cosmetics market.Based on the distribution channel, China’s cosmetics market is usually categorized into offline and online channels. Offline channels consist of exclusive retail stores, supermarkets, hypermarkets, beauty parlors/salon, and multi-brand retail stores. Online Channel consists of E-Commerce websites like #Alibaba and JD.com which are responsible for more than 70% revenue in China’s #cosmetics #market.

Chinese cities are often considered as the most polluted cities because of rapid industrialization. Therefore, air pollution causes various skin problems like dryness, itching, and various hair problems in China. This will enable an increase in the purchase and use of cosmetics products to control and prevent damage. Since the major population of China is using E-commerce sites to purchase these #products, it may drive the Chinese cosmetic market.

The major players are Estee Lauder, Body shop, Amway, Aveda corporation is expected to remain key drivers for market growth in the coming years. Growing awareness regarding several benefits of organic products as compared to their synthetic counterparts has resulted in increasing demand over the last few years. The growth of distribution channels in urban areas has made cosmetic products easily accessible to consumers.

Multinational players like L’Oreal (LRLCY), P&G (PG), Unilever (UL) which are strong and constantly developing well-established product lines and brand identities have maintained a dominant role in the Chinese beauty and personal care market. Many of these players have built their best positioning that has effectively embraced by local customers. These players can dominate the market with their vast production facilities and geographic presence in different countries. Manufacturers are focusing on opening new retail outlets to strengthen their distribution channels to increase their earnings. The availability of several brands and brand new features in the market.

Catkin is a leading cosmetic brand in the domestic market. In addition to online business, it has over 6000 counters in various beauty stores and shopping malls across the country.The company behind the make-up brand Catkin is trying to expand its global footprint as it believes that there is a growing for its products in foreign countries.

Nutri-Woods Biotech is also on the road of global expansion and they mainly supply traditional Chinese medicinal herbal activities. In four years, The firm recently signed a deal with L’Oreal Group to become a global supplier.

Australia based natural babycare brand Aromababy is aiming to solidify its presence in China where there is tremendous opportunity amid the rising consumption of baby care products. Currently, its products are distributed in top retail chains in Australia, Singapore, and Hong-Kong. It is sold in China through cross-border e-commerce Channels.

Dropper maker Virospack believes that there is huge potential in China’s domestic market as more local beauty brands started to position themselves in the premium category. At the end of 2019, they opened an office in Shanghai to cement its position in the Chinese market.

Glass specialist Bormioli Luigi is looking to expand its market into Asia pacific in order to capitalize on its strong skincare market. A bulk of the company is mainly derived from the luxury fragrance market however it mainly involves European companies and brands. As they analyze the European and American retail market is nearly flat and their brand is showing the best growth in the Asia-Pacific region. This development has led the company to turn its attention to Asia especially China.