Chinese consumers are spelling big opportunities for luxury makeup brands as the market is forecast to reach $8.8bn in 2024, according to GlobalData.
The research firm’s new report, China Make-Up – Market Assessment and Forecasts to 2024, reveals that the market–valued at $5.7bn in 2019–is forecast to see a CAGR of around 9% through 2024.
Facial makeup is set to witness the biggest growth, a CAGR of 9.8% in value from 2019-2024. This segment led the sector in value terms in 2019, with sales of $2.6bn. Unit sales reached 104.2m last year. Eye makeup is the second fastest-growing segment, with a CAGR of 8.7% from 2019-2024 forecast, followed by lip products at +7.4%.
Natural and organic makeup in particular is seeing strong demand, with GlobalData Consumer Analyst Anchal Bisht noting a shift towards more natural ingredients that don’t compromise on product quality as consumers make more informed purchase decisions. In terms of distribution channels, department stores are the leading sales, especially for consumers aged 25-34.
And while L’Oréal, LVMH and Amorepacific are the market leaders, GlobalData notes that private label players could spell competition, as although these account for a smaller share, they are witnessing a higher CAGR in the makeup sector.
China’s makeup market still offers plenty of room for growth: GlobalData notes that per capita expenditure on these products is lower than in Asia Pacific and globally. Indeed, per capita expenditure for these products in 2019 stood at $4.10 in China, $4.60 in Asia Pacific and $8.50 globally. By 2024, this figure in China is expected to equal that in Asia Pacific, at $6.20, while global per capita expenditure is forecast to reach $10.30.