2024 Beauty and Personal Care Annual Trend Report Released
Recently, Nielsen IQ released the "2024 Beauty and Personal Care Annual Trends" report. The report mentioned that according to data from the National Bureau of Statistics, the retail sales of cosmetics products above designated size increased by 0.3% year-on-year from January to July 2024, demonstrating the steady development and good trend of China's beauty and personal care market.
According to the report, by comparing the retail sales of cosmetics, the total retail sales of consumer goods, and the consumer confidence index, it can be found that the retail sales of cosmetics are highly positively correlated with the consumer confidence index, indicating that the retail of beauty and personal care products is closely related to market sentiment and consumer confidence. After the epidemic, consumer confidence has been somewhat impacted, and cosmetics retail has also fluctuated significantly as a result. Starting from 2022, the overall consumer confidence in the market is insufficient, and beauty and personal care consumers are gradually moving towards rational consumption. The retail performance of cosmetics is lower than the overall retail market. This trend in the report is defined as the third stage of the development of personal care and beauty, namely the "return to rationality period". Although the Chinese personal care market has entered a period of returning to rationality, personal care brands still have new opportunities in the market.
The data in the report shows that in 2024, the personal care category will continue to maintain positive growth across all channels (MAT2407 growth rate of 1.8%), and the growth rate will be higher than that of fast-moving consumer goods as a whole (MAT2407 growth rate of 0.1%). Unlike the overall channel composition of fast-moving consumer goods, the sales of personal care products mainly rely on online markets, with offline channels accounting for only 30%. In online channels, the growth rate of content e-commerce is as high as 32%, while the performance of traditional e-commerce and offline is relatively balanced. The rapid development of content e-commerce has become the main driving force for the growth of all channels.
The report states that consumers' preferences for personal care products are mainly reflected in three aspects: professionalism, emotional value, and emotional sensitivity. Professionalism refers to consumers preferring products that collaborate with professionals or have authoritative endorsements, especially when there are specific health needs, they tend to choose products with professional functions. Emotional value refers to the experience of self pleasure and care that personal care products can bring, especially those that support outdoor and social activities, which are popular among consumers. With the increasing sense of national pride, Chinese style elements have become popular in the consumer market, and personal care products related to Chinese style continue to sell well.
In addition to the concern for health, consumers' demand for refined products is also increasing. According to consumer demand, the development of the personal care industry can be divided into four stages. Since 2023, consumer demand for personal care products has been moving towards higher levels, greater emotional value, and self actualization. The three major trend directions are "fine use, exquisite demand, and specific scenarios", that is, consumers hope that personal care products have more personalized details, can bring inner satisfaction, and are suitable for richer usage scenarios.
