Jean-Paul Agon, CEO of L’Oréal, announced last week that the multinational’s sales in China have shown very strong growth over the past 10 weeks.
The world’s second largest beauty market is firing on all cylinders.
Skincare products have the highest market share – 47.4 per cent – and the category is expected to grow at a compound annual growth rate (CAGR) of 7.5 per cent to 2023, reveals GlobalData, the international data and analytics company.
Department stores accounted for the highest share of skincare sales in China in 2019 – 28.3 per cent.
E-tailers were a close second at 25.5 per cent, followed by hypermarkets and supermarkets at 15.5 per cent.
But the fastest-growing category over the next five years will be makeup, predicts GlobalData.
Annual sales are expected to record a CAGR of 8.8 per cent to reach US8.8 billion by 2024.
The face category, which accounted for US$2.9 billion in sales in 2019, is on track to achieve the highest growth of 9.8 per cent, ahead of the eye and lip categories at 8.7 per cent and 7.4 per cent, respectively.