Exploring China’s Personal Care Industry Trends
March witnessed the bustling city of Shanghai play host to the PCHi 2024 Annual Conference, one of the highlights of the year for professionals in the personal care, cosmetics, toiletries, and home care industries. The conference drew in a diverse array of business professionals eager to explore the latest innovations and trends that are shaping the industry —from formulators and manufacturers to R&D technologists and senior management.
Among the attendees was our own Rexi Li, who took the opportunity to present her insights into the dynamic landscape of China’s personal care ingredients market.
Amidst the buzz of the event, it became apparent that the personal care industry is undergoing a transformative phase, propelled by investments and a renewed focus on innovation. From mass market giants to luxury stalwarts, brands of all calibers converged to showcase their latest offerings and spearhead the next wave of advancements in personal care.
Consumer preference for natural and sustainable
One of the most notable trends discussed at the conference was the increasing consumer preference for natural ingredients and sustainable practices, a trend highlighted in our recent Chemicals, Materials, & Ingredients: 2024 Global Trends overview. Driven by a growing consciousness toward the environmental impact, manufacturers are developing new emulsifiers derived from natural sources, including animal- and plant-derived emollients, surfactants such as alkyl polyglucosides, and organic acids such as benzoic acids as antimicrobials.
The conference also highlighted China’s burgeoning green and sustainability market, spurred by the government’s decarbonization efforts. Phenomenal growth in this sector is evident in media advertisements, with well-known personal care and cosmetics brands incorporating green elements into their operations to meet evolving consumer expectations.
Growing demand for high-end products
Furthermore, rising disposable incomes in China have fueled the demand for high-end personal care products. This shift is already evident in segments such as conditioning polymers, where formulators are marketing silicone-free formulations or substituting silicones, such as cyclomethicone, dimethicone, and amodimethicone, with higher-quality alternatives to cater to discerning consumers seeking premium quality.
Supply concentration driving price competition
Discussions at the conference underscored the intensifying price competition within the personal care ingredients market. Concentrated supplies in Fujian, Guangdong, and Shandong, among other provinces, have led to lower production costs, attracting attention from supply chains. However, this concentration has also intensified competition among homogeneous products, with domestic brands primarily focused on the mid- to low-end market segments, while joint ventures and foreign enterprises dominate the high-end segment.
For a deeper understanding of the latest developments and innovations in the personal care market, access our Personal Care Ingredients: Global Market Analysis, encompassing factors such as trends in consumption, sourcing challenges, market demand, pricing fluctuations, and regional preferences and regulations. Connect with industry experts and stay ahead of the curve as we navigate this exciting journey of growth and transformation.
