Recently, in the context of economic recovery and the return of consumption, the beauty and personal care industry is accelerating its recovery. In 2023, the global beauty and personal care industry exceeded expectations, with sales reaching approximately $570 billion, up 9% in inflation-adjusted constant currency terms, surpassing the 7% growth rate in 2022 and expected to continue to grow at a high rate of 8% in 2024.
FMCG understands that in the Chinese market, on the one hand, international brands continue to focus on localized investment, using technology to reduce costs and increase efficiency; On the other hand, domestic brands have undertaken more downgrading and transfer of mid-to-high-end consumption with more cost-effective products. China's beauty and personal care sector partially rebounded from the 2022 decline in 2023 to achieve 3% growth, and while it has not recovered to 2021 levels, more improvement is expected in 2024, with an expected growth of around 5%.
In 2023, with the relaxation of pandemic restrictions, the retail sales of China's beauty market increased by 11% to 61.8 billion yuan, of which facial makeup performed the best, with retail sales increasing by 12%. However, in 2024, the overall growth rate of makeup will drop slightly to 8%. China's retail sales of skin care will grow by 2% in 2023 to about RMB282 billion, and will grow at a compound annual growth rate of 5% over the next five years.
At the same time, China's perfume retail sales increased by 15% to 15.2 billion yuan, and are expected to maintain a high growth rate of 12% in 2024. In 2023, fine fragrance was the best-performing category, with retail sales up 17%. Over the next five years, China's perfume sales are expected to grow at a double-digit CAGR, with high-end perfumes continuing to grow while mass perfumes continuing to decline.
In the field of retail e-commerce in the beauty and personal care industry, Douyin e-commerce has performed prominently. Data shows that in 2023, the sales of skincare products on the Douyin platform will increase by more than 100%. At the same time, Tmall and JD.com saw declines. While Douyin accurately pushes content and products that are more in line with users' needs based on their interests and tags, on the other hand, its live e-commerce model pays more attention to cost performance, effectively catering to the main consumer groups of mass products. （Z）
(Source: Euromonitor)