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Cosmetic & Personal Care Product Manufacturing in China

Herborist competing with foreign players in the high-end China personal care product manufacturing market

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2014-04-03 20:48:04 - Cosmetic & Personal Care Product Manufacturing in China - a new market research report on

The Cosmetic and Personal Care Product Manufacturing industry has shown strong growth over the past decade. 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 11.4% in the five years through 2013 to an estimated $16.0 billion.

Over the next five years, industry revenue is forecast to grow 7.5% annually to total $22.9 billion in 2018. The demand for cosmetic and personal care products in China is expected to be high over the period, which serves as a strong driver. However, the rising price of raw materials continues to shrink profitability.

Chinese cosmetic and personal care product manufacturers mostly compete in lower-end



markets. 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; 85 cosmetics manufacturers were forced to stop production as a result.

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