In 2010 the market for men’s grooming products in the country was estimated to be valued at €200m. Although this is a relatively small base, RNCOS predicts that CAGR will continue at approximately 28 per cent over the next three to four years.
“Major reasons for the sharp growth in this segment are that men are increasingly becoming image conscious, giving way to a demand that is being fed by the launch of specialised products targeted at men,” said Shushmul Maheshwari, Chief Executive, RNCOS.
Moisturizers and toners lead the way
With the skin care category expected to benefit most from this trend, products such as moisturizers and toners are expected to be amongst the biggest growth drivers in the coming years.
Likewise anti-ageing products, whitening and skin lotions are all expected to experience ‘considerable’ growth.
These products have been positioned as necessity lifestyle products by finished goods players, who are adapting western style marketing campaigns in a bid to tap into fast growing household incomes.
Size of population and economic growth point to opportunity
RNCOS’s latest report, Cosmetics and Toiletries Market in China, points out that, although the country still has a relatively low per capita expenditure, the sheer size of the population, combined with unprecedented economic growth, is giving way to huge potential.
“Usage of cosmetics products has become a part of daily routine for many in the past decade and the market will grow with the increasing geographic penetration and rising consumer spending,” said Maheshwari.
Some of the primary benefactors of this growth are expected to be the biggest cosmetic and personal care players in the international arena, with RNCOS citing names such as Procter & Gamble, L’Oreal and Shiseido as the biggest shakers.
New products from big players will shape the market
“New products and marketing strategies from these companies will paint a new picture in the longer term,” said Maheshwari.
“Products from international brands are generally perceived to be of better quality than those of domestic players, which is why a large number of consumers have shifted to international brands within recent years.”
However, the market researcher believes that there are still opportunities for smaller domestic players, citing smaller, yet relatively unexplored cities throughout the country as the primary targets.