China sees growth of premium facial skin care market
PORT WASHINGTON, N.Y. China experienced a growth in sales of premium facial skin care products in 2007 as more women in China are willing to spend top dollar to look younger, according to the NDP Group, a market research company.
In China, sales of prestige premium products, those priced at about US$113 and above, grew from 28 percent of the dollar share in the first half of 2007 to 31 percent in the second half of the year.
There was also growth in super premium skin care products, those selling for about US$214. Super premium products made up 10 percent of all facial skin care sales in the first half of 2007 and grew to 15 percent by the second half of the year.
“The beauty industry in China is an emerging market and I expect to see continued growth in the coming year, with skin care products at the forefront,” stated Edward Wang, manager of China Beauty for The NPD Group. “We are seeing more advertisements in China both in magazines and on television for premium-priced anti-aging products. These ads play an important role in educating women about skincare usage in China.”
The NPD Group noted that the trends in China are comparable to what is happening in the United States, where premium facial skin care dollars were up 11 percent in 2007 compared with 2006, and have been up double-digits every year for the past five years. Dollar share from products priced $70 and above has more than doubled in the past five years, and in 2007 topped out at 34 percent sales of prestige skin care face products.
Meanwhile, super premium skin care products priced at $150 and above now make up 9 percent of the total prestige facial skin care market and have seen dollar sales grow 10-fold in five years. Comparing 2007 to 2006, dollars were up more than 30 percent to $186.1 million.
In France, sales in 2007 for the overall skin care market rose 3 percent compared with 2006 with an average price of U.S. $57.20. The premium facial skin care market, products at U.S. $108.50 and above, was up 12 percent in 2007 versus 2006, with sales of U.S. $225.4 million. Premium facial skin care products now account for nearly a quarter of the total skin care market.
The super premium anti-aging products, those priced at U.S. $232.50 and above, are growing as well. In 2007, super premium products made up one-sixth of the total anti-aging sales and rose 7 percent versus 2006, on top of a double-digit increase the year earlier.