China’s beauty market sales will exceed 1 trillion yuan in 2025. According to Women’s Wear Daily, there are several factors that drive the potential. Firstly, the increase in household income. Secondly, the continuous influx of newcomers. And also, the continuous growth of local brands. As a result, China has become the key to the growth of global beauty companies.
China is more than a key consumer market and manufacturing hub. What’s more, it has begun to become a driver of innovation. From the establishment of R&D centers to investment funds, many international beauty giants continue to expand their investment in China. At the same time, many local Chinese beauty brands have begun to expand internationally to explore the international market. Chinese beauty brands are also entering foreign markets through cross-border e-commerce.
Rise of China’s beauty market
In recent years, China’s beauty market has been full of vitality, showing new development characteristics. Firstly, the growth rate is fast and the coverage is wide. At present, the market size of China’s beauty industry is gradually moving towards the trillion level. Secondly, basic facial skin care is the core track, accounting for the largest market share. Meanwhile the growth rate of sub-tracks such as base makeup and color makeup is also fast. Thirdly, the male beauty market is developing rapidly and major brands are rushing to enter the market. In addition to the ‘her economy’, the ‘he economy’ is also quietly emerging. The fourth is the rapid rise of domestic beauty brands. Domestic brands have made significant progress in raw materials, formulas, and craftsmanship. As a result, a large number of new domestic brands such as Perfect Diary and Huaxizi have emerged.
The booming beauty market in China is of great significance to promoting domestic and even global economic recovery. In terms of supply chain and industrial chain, the development of the beauty industry is closely related to many industries. There are agriculture, biochemical industry, glass industry, plastic industry, transportation industry, advertising industry. This has a positive role in promoting the global industrial chain.
The unprecedented development of China’s beauty industry is the result of the combined effect of multiple factors.
First, with the continuous development of China’s economy, the main contradiction in today’s society has turned into a contradiction between the people’s ever-growing needs for a better life and unbalanced and inadequate development. Beauty products just fit the social needs and respect needs of consumers.
Second, more and more excellent foreign beauty brands have entered China, bringing advanced production technology, novel marketing methods and unique product concepts to the Chinese beauty market, promoting the gradual maturity and improvement of the industrial chain, and to a certain extent. Cultivated consumers in China’s beauty market.
Third, the consumer group of Chinese beauty products is gradually expanding. With the rapid development of the economy, the household income level of Chinese people continues to increase, the consumption power continues to increase, and the demand for beauty products will also expand. In addition, some beauty brands have expanded their markets in other cities after their deep cultivation in first- and second-tier cities, gaining more sustained positive growth momentum.
Fourth, the change in consumption concept has provided a broad market for the development of Chinese beauty products. ‘Generation Z’ consumers are the core consumer groups in the future beauty market.
Fifth, new social and marketing platforms such as live broadcasting are rapidly expanding. The rise of social media such as Xiaohongshu evaluation, online celebrity live streaming, and KOL has strongly promoted the development of China’s beauty market.
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