Chinese cosmetics and toiletries market, which comprises of hair care, fragrances, make-up/colour cosmetics, was worth an estimated US$ 16.9 billion in 2008 and is forecasted to grow at a CAGR [1] of just over 13% through 2012, says a new report Cosmetics and Toiletries Market in China from India-based market research firm, RNCOS.

According to the report, the sharp increase of the hair care and skin care segments will boost the overall cosmetic market growth in China and will safe guard the market from the impacts of the ongoing worldwide economic crisis during 2009-2012. As a result, the market is anticipated to cross US$ 28 Billion.

In their report, RNCOS show that the China’s economy, which recorded highest GDP growth in the Asia-Pacific region in 2008, attracted significant foreign direct investment in the cosmetics and toiletries industry of the country.

China’s GDP growth further transformed into considerable increase in disposable income of especially the middle class population. Increased spending power coupled with improved awareness about cosmetics and personal care offerings has shaped in tremendous boost in cosmetics and toiletries demand in the country.

In addition, Chinese male consumers have shown receptive approach towards previously ignored segments of the market. For instance, fragrances and men’s personal care products demand is rapidly surging in the country due to the western culture influence and media promotions. “These new segments will not only enable the existing players to cater the high growth opportunities but will also demand new players to provide answers to overflowed demands,” comment the authors of the report.