China is gaining on the United States, and the Chinese beauty market is expected to record a value of $87.64 billion in 2025, increasing at a CAGR of 6% for the duration spanning 2021-2025. According to reporting from NPD 2020, beauty e-commerce sales in China set a new record.
- Skincare, the largest category, increased 69% to $7.6 billion.
- Makeup, the second-largest category, increased 29% to $2.5 billion.
- Brand flagship stores dominate beauty e-commerce sales, generating $7.7 billion and increasing 70%, while direct stores generated beauty e-commerce sales of $1.7, an increase of 15%.
- The cross-border channel’s high growth rate continued in 2020 due to China’s travel ban, with sales in the channel reaching $1.7 billion, an increase of 16%.
- Cross-border sales are heavily influenced by shopping festivals. In March sales saw an increase of 12% boosted by Women’s Day. June saw an increase of 14% boosted by 618. September saw an increase of 11% boosted by Double 11.
“The beauty e-commerce industry is likely to maintain its strong double-digit growth in China in 2021, especially as more consumers get vaccinated. When masks and social distancing are no longer required, makeup and fragrances will post stronger growth,” said Samuel Yan, E-commerce Commercial Lead, China, The NPD Group.
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