May 2, 2022
(press release)
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While China’s stringent zero-COVID-19 policy is impacting skincare sales, the effects are expected to be short lived. Sales are slated to resurge through 2026 as the pandemic restrictions are relaxed, and the economy regains its lost momentum. Against this backdrop, the skincare market in China is projected to expand at a compound annual growth rate (CAGR) of 5.1% from CNY230.1bn ($35.7bn) in 2021 to CNY295.5bn ($46.3bn) by 2026, says GlobalData, a leading data and analytics company. GlobalData’s report, ‘China Skincare – Market Assessment and Forecasts to 2026’ reveals that the market growth will be primarily driven by the hand care category, which is set to register the fastest value CAGR of 6.3% over 2021–2026, trailed by the depilatories category with a CAGR of 5.6%. Anush Shaw, Consumer Analyst at GlobalData, says: “China’s facial care category is one of the largest in the world. Leading brands are targeting high growth areas such as anti-aging and skin repair. However, the strict anti-COVID-19 measures imposed since early 2022 due to sporadic outbreaks are impacting skincare sales. The lockdowns will drive online purchases, and stifle brick-and-mortar sales. As the COVID-19 caseload declines, and pandemic control measures are eased, consumers will return to their workplaces, and social gatherings and public events will resume, thereby motivating consumers to augment their skincare routine and look their best.” ‘E-retailers’ was the leading distribution channel in the Chinese skincare market in 2021, followed by health & beauty stores. The per capita expenditure (PCE) on skincare of Chinese consumers rose from $6.6 in 2016 to $12.5 in 2021, surpassing the global average ($9.8) and the regional average ($9.2). The PCE on skincare in China will reach $16.2 by 2026. L’Oréal S.A., Shanghai Pechoin Daily Chemical Co., Ltd., and Mary Kay, Inc. were the leading companies in the Chinese skincare sector in 2021. Pechoin, Mary Kay and Artistry were the top brands of the year. Shaw concludes: “The economic recovery, rising household disposable incomes, and revival in consumer confidence will bolster the long-term growth of the Chinese skincare sector. Chinese consumers are growing increasingly experimentative, and willing to pay more for products with improved formulations. New product launches and associated marketing activities will play a pivotal role in accelerating demand for skincare products. In the immediate future, E-retail sales of skincare products will continue to rise as the pandemic-induced habit of online shopping will stick even as the pandemic dissipates.”
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