China's Cosmetics Market Posts Strong Growth; Likely To Catch Up With U.S. Market

China’s cosmetics market is fast catching up with the United States, which currently leads the world market with its $55 billion in annual sales. Annual sales growth in China is averaging 15 percent, much higher than the single-digit global growth rate, and is forecast to reach $38 billion in 2013. In China, skincare accounts for 40 percent of the cosmetics and personal care market, compared with 30 percent for the rest of the world. Foreign-owned cosmetics brands account for 90 percent of sales in China, with Procter & Gamble leading the market with 15 percent share, followed by L’Oréal with 10 percent. Shanghai Jahwa is the leading local cosmetics company, powered by its good brand diversification and multichannel distribution.