China has become one of the largest cosmetics markets in the world and ranking second in Asia after Japan.
San Francisco, CA (PRWEB) September 16, 2012
The Cosmetic and Personal Care Product Manufacturing industry in China has shown strong growth over the past decade, says IBISWorld. China has become one of the largest cosmetics markets in the world and ranks second in Asia after Japan. Industry revenue has been growing at an annualized rate of 9.1% in the five years through 2012 to an estimated $12.1 billion.
Chinese cosmetic and personal care product manufacturers mostly compete in lower-end markets, while the high-end market is dominated by global groups such as P&G, Unilever, and L'Oreal. Foreign enterprises have acquired many domestic brands in recent years. In 2011, Coty Inc. became the largest shareholder of TJoy. In 2008, German manufacturer Beiersdorf acquired 85.0% of shares in C-bons Daily Chemical Co. Ltd. and Johnson & Johnson acquired Beijing Dabao. Foreign-funded companies are estimated to generate over half of total industry revenue, according to IBISWorld research. Nevertheless, no firm, domestic or foreign, has a dominant market share.
Only a few Chinese brands, such as Herborist, are able to 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 and 85 manufacturers in the Cosmetic and Personal Care Product Manufacturing industry in China were forced to stop production. In the face of these new regulations and increasing competition, domestic companies are currently upgrading their equipment and improving product quality, says IBISWorld. In addition, manufacturers are constantly developing new products to expand market share. Organic, natural and hypoallergenic products have become very popular in the Chinese market.
For more information, visit IBISWorld’s Cosmetic and Personal Care Product Manufacturing in China industry report page.
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IBISWorld industry Report Key Topics
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.