Indeed, with strong growth in key areas such as skin care and hair care, the market research company RNCOS believe that the total revenues for the market will exceed $25bn by 2012.
“The market is undergoing transformation and development phase and is far from the saturation level,” a new RNCOS report states.
The report, entitled Cosmetics and Toiletries Market in China, states that potential growth opportunities are likely for both domestic producers and international players.
Opportunities for domestic and international players
These companies will be able to tap into a fast growing consumer spend in a massive population, while potential remains due to the fact that the actual per capita spend on cosmetics and toiletries remains relatively low, particularly when compared to consumer spend in developed markets.
Although the market has become infinitely more developed in recent years, the report suggests that if new entrants adopt the right market entry strategies, find reliable manufacturing and distribution partners, use effective marketing techniques and launch suitable products with the correct pricing, prospects look strong.
Skin care and hair care dominate
Currently annual market revenues represent approximately 38 per cent from skin care and around 20 per cent from hair care.
Currently the market is the second largest in the Asia-Pacific region, just behind the Japanese market and is now the seventh largest in the world, but double digit growth rate is set to propel it into the top three in the next few years.