Cosmetic & Personal Care Product Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
2672Revenue
$39.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
243k
Businesses
837
Wages
$X.Xbn
Cosmetic & Personal Care Product Manufacturing in China industry analysis
The Cosmetic and Personal Care Product Manufacturing industry has experienced strong growth over the past decade. China has become one of the largest cosmetics markets in the world and ranks first in Asia. Industry revenue is expected to grow an annualized 9.3% over the five years through 2023, to $39.9 billion. This includes anticipated 8.4% growth in the current year.Industry revenue is forecast to grow an annualized 7.6% over the five years through 2028, to total $57.4 billion. Skincare and personal care will likely continue to become more high-end, and young consumers will remain the main force in the market. Profit margins have recovered to 8.7% of industry revenue in 2023.Chinese cosmetic and personal care product manufacturers mostly cater to the lower-end market. Only a few Chinese brands, such as Herborist, compete in the high-end market. In 2011, the State Food and Drug Administration launched strict regulations regarding the safe usage of ingredients and additives. As a result, 85 cosmetics manufacturers were forced to stop production. Foreign enterprises have acquired many domestic brands in recent years. In 2011, Coty Inc. became the largest shareholder of TJoy. In 2014, L'Oreal merged with the brand MG. Foreign enterprises account for an approximate 60% of industry revenue in 2023.Industry operators are constantly developing new products. For example, cosmetics and personal care products include Chinese medicinal herbs, products for males, products for children, products designed for sports and products for professional beauty. Organic, natural and hypoallergenic products have also become popular in the Chinese market.
Trends and Insights
- Industry consumers have strong purchasing power. Due to its large population, China has become the largest cosmetics market in Asia, and consumers have strong purchasing power.
- Skin care is the most important product category. The skincare market is highly competitive, and Chinese people favor whitening products.
- Guangdong is the largest production base. Guangdong has a complete industrial chain from raw material procurement to retail sales, and many famous brands are located in Guangdong.
- Profit margins are high. Industry firms’ profit margins are relatively high as many cosmetics and personal care products have high value-added inputs.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 9.3 % over the past five years, to reach an estimated $39.9bn in 2024.
Trends and Insights
Industry consumers have significant purchasing power
- China has become an important cosmetics market, ranking second after the United States globally, and the largest in Asia.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Both urban and rural demand will likely boost the industry
- ACMR-IBISWorld forecasts that revenue for the Cosmetic and Personal Care Product Manufacturing industry will increase in the future.
Biggest companies in the Cosmetic & Personal Care Product Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Cosmetic & Personal Care Product Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Skin care products, Hair care products and Cosmetics. Skin care products is the largest segment of the Cosmetic & Personal Care Product Manufacturing in China.
Trends and Insights
Skin care products selling well in China
- Skin care products are products that protect the skin.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Toothpaste and Toothbrush Manufacturing in China
- Fragrance and Essence Manufacturing in China
- Hairdressing and Beauty Appliance Manufacturing in China
- Baby Product Manufacturing in China
International industries
- Global Cosmetics Manufacturing
- Cosmetic & Beauty Products Manufacturing in the US
- Acne Treatment Manufacturing OTC in the US
- Hair Loss Treatment Manufacturing in the US
- Perfume & Fragrance Manufacturing in the US
Table of Contents
About this industry
Industry definition
The Cosmetic and Personal Care Product Manufacturing industry in China comprises businesses that manufacture skin cleansers and other skin care products, hair care products, deodorants, fragrances, and other toiletries. Raw materials are sourced from upstream chemical industries and the finished products are sold via extensive sales networks. Medical and pharmaceutical products are not included in this industry.
What's included in this industry?
Skin care productsHair care productsCosmeticsFragrances and other productsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
DEPILATORY MALE GROOMINGDEODORANTPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry consumers have strong purchasing power. Due to its large population, China has become the largest cosmetics market in Asia, and consumers have strong purchasing powe...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Skin care is the most important product category. The skincare market is highly competitive, and Chinese people favor whitening products.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Guangdong is the largest production base. Guangdong has a complete industrial chain from raw material procurement to retail sales, and many famous brands are located in Guang...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Profit margins are high. Industry firms’ profit margins are relatively high as many cosmetics and personal care products have high value-added inputs.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
L’Oreal’s brand position is extremely prominent. It is a leading brand both domestically and globally.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Downstream demand is growing. Department stores are a major purchasing channel, and its development has boosted the sales of cosmetics
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Price is important to customers. There is less price competition at the high-end market. However, the price in the middle- and low-end market is the key factor affecting sale...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cosmetic & Personal Care Product Manufacturing industry in China in 2024?
The market size of the Cosmetic & Personal Care Product Manufacturing industry in China is $39.9bn in 2024.
How many businesses are there in the Cosmetic & Personal Care Product Manufacturing in China industry in 2024?
There are 837 businesses in the Cosmetic & Personal Care Product Manufacturing industry in China, which has grown at a CAGR of 6.6 % between 2019 and 2024.
Has the Cosmetic & Personal Care Product Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Cosmetic & Personal Care Product Manufacturing industry in China has been growing at a CAGR of 9.3 % between 2019 and 2024.
What is the forecast growth of the Cosmetic & Personal Care Product Manufacturing industry in China over the next 5 years?
Over the next five years, the Cosmetic & Personal Care Product Manufacturing industry in China is expected to grow.
What does the Cosmetic & Personal Care Product Manufacturing in China include?
Skin care products and Hair care products are part of the Cosmetic & Personal Care Product Manufacturing industry.
How competitive is the Cosmetic & Personal Care Product Manufacturing industry in China?
The level of competition is high and steady in the Cosmetic & Personal Care Product Manufacturing industry in China.
