Niche Chinese brands on rise as cosmetics market recovers

The domestic cosmetics market has experienced recovery this year, with skincare taking the lead and niche Chinese brands on the rise, said an industry report.

According to the 2023 China Skincare Industry Omni-channel White Paper, released by NIQ and GfK, skincare products, a main segment of the cosmetics industry, reached 325.3 billion yuan ($45.6 billion) by July 2023, with 1.9 percent of omni-channel year-on-year growth and 7.9 percent of increase online.

The report found that, compared with the size and trend of historical data, there is still room for the skincare market to expand.

New changes such as rapid growth and iteration of niche Chinese brands, price undercutting, and product efficacy advancement have brought multiple challenges to businesses, said the report.

Patrick Cua, managing director for NIQ China, said: "With the elevation of consumer self-indulgence and the continuous maturity of skincare concepts, we are confident in the steady growth of the skincare market in China."