This year’s Chinese sales are set to top the $50 billion mark for the first time, according to market research firm IHS Markit.
In fact, it’s expected to surpass the $49.5 billion mark in sales this time last year, with China expected to become the largest single market for cosmetics.
And that’s in a year where there’s been a slew of high-profile cosmetic launches and new brands are launching in the country.
The cosmetics sector was worth $1.8 trillion in 2017, with $1 trillion spent on cosmetic and personal care products.
But 2017 has also seen a steady increase in sales for the cosmetics industry in China.
The IHS Global Beauty 2017 report says that sales are expected to grow at a rate of 5.3 percent this year, up from 4.3% in 2017.
That’s on par with growth in the rest of the world, according the report.
“The market has undergone a major transformation over the last decade, and we expect that the cosmetics sector will be one of the fastest growing sectors in the future,” said Lisa Bui, director of sales for IHS’ global cosmetics group.
“This year is shaping up to be the year for growth in cosmetics as consumers are more willing to spend money on cosmetics.
There are more brands launching in China and we’re seeing strong growth in brand-name cosmetics sales as well,” Bui said.”IHS expects Chinese cosmetics to continue to dominate the cosmetics market as the country’s overall economic growth continues to accelerate.”
As the Chinese market matures, new companies will need to be launched to fill a gap in the market.
China is also a big market for traditional cosmetics, with beauty products accounting for roughly two-thirds of the market for men’s and women’s products.
This year, IHS expects that a record $11 billion worth of cosmetics will be sold in China, a figure that would be almost twice the amount spent on all other goods in 2017 and more than double the amount invested in all other sectors.
IHS estimates that cosmetics will account for 20.4 percent of China’s overall cosmetics market by 2020, up 7.4 percentage points from last year.
That would be up from just 4.9 percent in 2017; however, cosmetics still account for less than 3 percent of total cosmetics sales in China at present.