Chinese Makeup Market to Reach $8.8B in 2024
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LONDON — Despite a temporary dip in sales due to the coronavirus, the Chinese makeup market is expected to grow to $8.8 billion by 2024 from $5.7 billion in 2019, with a compound annual growth rate of 8.8 percent, according to GlobalData.
The growth will be primarily driven by the face makeup category, accounting for the highest volume sales of 104.2 million units in 2019, which is projected to register a 9.8 percent compound annual growth rate from 2019 to 2024. The category is followed by the eye makeup and lip makeup categories, which are expected to grow 8.7 percent and 7.4 percent annually, respectively, during the same period.
L’Oréal, LVMH Moët Hennessy Louis Vuitton and Amorepacific are the top three market players in the makeup sector, while private labels, which account for a small share, are growing at a higher rate than other brands.
Department stores were the main distribution channel in 2019, accounting for 28.3 percent of sales. This was followed by e-commerce players and hypermarkets and supermarkets, with market shares of 25.5 percent and 15.8 percent, respectively.
“Increased focus on looking good and rising awareness of product and beauty trends make China a lucrative market for the makeup sector,” said Anchal Bisht, consumer analyst at GlobalData. “As the influence of marketing loses sheen and consumers actively look to make informed purchase decisions, there is a shift toward product formulations. Consumers are increasingly looking for products that are less harmful, without compromising the quality, fueling the demand for natural and organic products.”
Bisht also pointed out that the popularity of luxury makeup brands is on the rise among Chinese consumers, suggesting significant prospects for these products going forward. Meanwhile, marketing campaigns from manufacturers are successfully luring the consumers in lower-tier cities, which are expected to emerge as new growth centers and contribute to overall sector growth.
GlobalData did not factor in COVID-19 impact with its forecast.
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