Premium Beauty and Personal Care in China

PRE-COVID-19 PERFORMANCE

E-commerce helps drive dynamic growth in premium beauty and personal care in 2019

Beauty and personal care continued to be driven by premiumisation in 2019, backed by improving living standards and rising incomes. This trend is particularly visible among younger consumers and Millennials who are paying more attention to their grooming habits and who are willing to pay a higher price for premium and luxury brands as part of their “appearance management”.

Salon brands on the rise as consumers look for more from their hair care

Due to the challenges of fast-paced social lives and increased work pressure, scalp problems such as dandruff and hair loss have gradually become a growing concern for Chinese consumers. This is especially true among the younger generation who are generally more image conscious.

Leading players deliver excellent results in 2019

Premium beauty and personal care remained a highly dynamic category in China in 2019 with the top seven companies all recording double-digit growth in current value terms. L'Oréal continued to lead the category thanks to its rich product portfolio, strong distribution, and huge investment in marketing.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to grow by 9% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This would represent a significant slowdown from the double-digit growth seen in 2019, although still remaining relatively strong.

Affected products within premium beauty and personal care

Premium colour cosmetics has been one of the hardest hit categories within premium beauty and personal care, with growth expected to be significantly slower than in the previous year. A big factor behind this is the fact that consumers have been trapped at home during the nationwide lockdown and even as restrictions are being lifted consumers are having limited social contact and are wearing face masks and gloves.

Recovery and opportunities

The impact of COVID-19 on premium beauty and personal care in China is predicted to be relatively short-term with dynamic growth projected to return in many categories as restrictions are lifted. With an expanding population and a growing focus on online shopping as a recreational habit it seems highly likely that more and more consumers will embrace these products over the forecast period.

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