Dec. 25, 2024
China's Cosmetics Consumption Sees Sharp Decline
TMTPOST -- China's cosmetics consumption recorded a significant 26% year-on-year decline in November, according to the National Bureau of Statistics, signaling a stark shift in a sector once marked by resilience. Historically, despite a cooling economy, female consumers in China demonstrated strong purchasing power, especially in the cosmetics market. Before the pandemic in 2019, the country's total retail sales of consumer goods grew by 8% year-on-year, while cosmetics surged by 13%, outperforming the broader market. Even during the pandemic's peak in 2020, when overall retail sales contracted by 4%, cosmetics still managed to achieve nearly 10% growth. However, the momentum began to slow in 2022. That year, total retail sales dipped by 0.2%, with cosmetics consumption dropping by 4.5%. In 2023, while overall retail sales rebounded with a 7.2% increase, cosmetics saw a modest 5.1% growth. The decline became more pronounced in November 2023, when total retail sales grew by 3%, but cosmetics plummeted by 26.4%. This trend highlights a rapid downward shift in female spending on beauty products. The sharp decline suggests a shift in consumer behavior, with many women moving away from purchasing expensive international brands in favor of more affordable domestic alternatives. In an era increasingly driven by cost-effectiveness, the "dupe" trend is gaining traction in China's cosmetics market, as consumers prioritize value over luxury.
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