From the just ended China International Consumer Products Expo, “functionality” has become a keyword constantly mentioned by major brands.
1. Market scale of functional skincare products
Under the demand of consumer efficacy, the domestic market size of efficacy skincare products has shown high growth. According to retail sales, the market size of functional skincare products in China has increased from 13 billion yuan in 2017 to 30 billion yuan in 2021, with a compound annual growth rate of 23%. It is expected to reach 41 billion yuan in 2022.
2. Market size of functional skincare product segments
From a segmented perspective, the market for hyaluronic acid (hyaluronic acid) based functional skincare products has increased from 2.5 billion yuan in 2017 to 7.8 billion yuan in 2021, with a compound annual growth rate of 32.9%. It is expected that its market size will reach 10.9 billion yuan by 2022. The market for collagen based functional skincare products has increased from 1.6 billion yuan in 2017 to 6.2 billion yuan in 2021, with a compound annual growth rate of 38.8%. It is expected that the market size will reach 9.4 billion yuan by 2022.
In the collagen category, due to the significant advantages of recombinant collagen compared to animal derived collagen, the market size of functional skincare products based on recombinant collagen has increased from 840 million yuan in 2017 to 4.6 billion yuan in 2021, with a compound annual growth rate of 52.8%. It is expected to further increase from 7.2 billion yuan in 2022.
3. Market competition pattern
In China’s functional skin care market, enterprises further occupy the market share by binding with the required efficacy and corresponding active ingredients. The market concentration ratio is high, with CR5 reaching 67.5%. Among them, Betaine ranks first with a market share of 21%, focusing on repairing active ingredients; Next is L’Oreal, which accounts for 12.4%, mainly focusing on repair and anti-aging; Following closely behind are Juzi Biological, Huaxi Biological, and Shanghai Jiahua, accounting for 11.9%, 11.6%, and 10.6% respectively. The products mainly focus on whitening and anti-aging, moisturizing (hyaluronic acid), moisturizing, and mild.
Post time: Feb-27-2023