China Beauty Consumer & Recovery Trend 2023

2022 was a year full of  full of uncertainties and market volatility in China, and the consumer market growth softened amid daily life routine and supply chain disruptions. 

Beauty market performance was hit more severely in 2022, and a new trend of simplification emerged.  

Kantar Worldpanel Beauty analysis showed that women between the ages 15 and 64 decreased their skincare steps to 3.99 on average, lowest it has been in the past 3 years. 

This downward trend was particularly noticeable among the young consumers from the Tier 1 & 2 cities, facing fast-paced lifestyle and pressure. Simplification in product, usage, and communication was found, but this too is an extension of new consumer sophistication, which can be summarized as 5 Ss. 

“Simplicity is the ultimate sophistication.” - Leonardo da Vinci.

5Ss in simplification are as follows:

1. SMART INVESTMENT to Satisfy both Functional and Emotional Needs.

2. SUBSTITUTION BEAUTY: Beauty Services Shifting Consumers’ Focus in Daily Beauty Routine & Rise of Occasional Sensitivity Needs.

3. SKINIFICATION of Total Beauty, from Head to Toe.

4. SOMETHING NEW & DIFFERENT: Niche Segment Exploration for Advanced Holistic Routines and High-Efficacy & New Usage Occasion-driven Innovation.

5. SELECTIVE SIMPLIFICATION: Differentiation of needs and usage habits to better fit into busy lifestyle.

We can look to South Korean market as an inspiration for driving the market recovery. South Korea’s beauty market recovery was driven foremost by products linked with outdoor activities, as well as products that focus on high-efficacy delivery at convenience.

And as the overall market demand recovered, consumer demands started to re-diversify in both the products they sought and platforms they leveraged to fulfil their relevant shopping needs. 

While outlook for the China beauty market recovery in 2023 is positive, there are some hurdles that the businesses need to overcome.

1. Consumer confidence without whose recovery people's money will not convert to consumption still faces much challenge.

2. Travel retail rebound can affect short-term domestic sales and further dial up Daigou activities.

3. Substitution Beauty with a potential to further cannibalize in-home beauty care product demand.

4. Effortless Chic (Natural) Look Trend dampening the makeup market recovery.

5. Aggressive promotion drive from the past 2 years have changed consumers perception of value and purchasing pattern.

Kantar Worldpanel’s latest China Beauty Consumer & Recovery Trend 2023 report addresses the emerging trend in the market and how they can help fuel both the market and brand growth based on an in-depth analysis of consumers’ purchasing and usage behaviors.

Contact your Kantar Worldpanel consultant today for more details.