In 2021, China intensively issued regulations on children’s cosmetics, cosmetic efficacy, cosmetic labels, cosmetic ingredients and safety, etc., and launched rectification plans for non-compliant behaviors, which boosted the industry’s development.
According to data from iiMedia Research, the market size of China's cosmetics industry reached 455.3 billion yuan in 2021, a year-on-year increase of 15%, basically returning to the level before the epidemic. And the figure is expected to exceed 500 billion yuan in 2023.
As for the skincare and makeup sectors, the skincare sector has a larger market size, reaching 230.8 billion yuan in 2021 and increasing by 13.8% YoY. In contrast, the makeup market size is smaller, only 44.9 billion yuan in 2021, but it has higher growth rates.
Since 2018, the import value of cosmetics in China has maintained steady growth, but the growth rate has slowed down significantly. In 2021, the import value exceeded 130.07 billion yuan, increasing by 8.8%.
In 2022, Chinese consumers' average monthly spending on cosmetics is mainly in the range of 201-500 yuan and 501-1000 yuan, accounting for 36.0% and 35.5%, respectively, and only 6.1% of the high-end consumer groups with an average monthly cosmetics expenditure of more than 1,500 yuan.
According to the survey data, facial creams and lotions are the most commonly used skincare products, accounting for more than 40%. Consumers also prefer cleanser, eye cream, toner, and facial masks. As the competition in the skincare market becomes severe, many consumers have more diversified demands for skincare products, which requires brands to make R&D innovations.