The Chinese cosmetics sector was valued at 204.9 billion Rmb in 2015, according to figures gathered by HKTDC Research. Now, Kantar Worldpanel is reporting that the skin care and color makeup sectors have risen 12% and 10%, respectively, in the 52 weeks ending June 2016. To compare, the general consumer goods sector is expanding at just 3.1%.
Among top brands, Dabao appears to have the largest footprint, having been chosen by 23.1% of the population, on average twice a year, totaling 76.7 million purchases in a single year.
"Consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, yet the growth of Chinese brands and Korean/Japanese brands are noticeable."
Pechoin, a fast riser, added 3.6 million families to its brand over the last 12 months, according to Kantar.
"Amongst all the 4,000 brands tracked by Kantar Worldpanel, only 40% of them saw an increase in net sales," the analysis notes. Those that grew well, particularly the top 20, did so as a result of increased market penetration. In the case of the top 20 fastest-growing brands, 78% of the growth came from a gain in market penetration.
Top growers included Innisfree, Dr. Morita and Shiseido.
About 82% of cosmetic market growth was driven by premiumization, the report added.This beauty premiumization trend is creating market growth around the globe, as Global Cosmetic Industry previously reported.
Other drivers for future growth include: young consumers, color cosmetics trials, cushion technology, and natural and safe brand positioning.
"Consumers today have unprecedented choices available to them thanks to overseas travel and e-commerce, yet the growth of Chinese brands and Korean/Japanese brands are noticeable," said Jason Yu, general manager at Kantar Worldpanel. "While consumers are more ready to trade up, those brands who advocate health, efficacy and fun are winning consumers' choices, on the back of unique product and marketing innovation as well as smart omni-channel deployment."