The Market of Organic Cosmetics in China
As natural and organic cosmetics products contain plant ingredients, manufacturers must acquire certification for using organic plant extracts. Products cannot contain artificial spices or skin pigment, and use of oil chemicals such as preservatives and surfactant must be strictly limited. Natural and organic cosmetics manufacturers in China cannot test products on animals or use radiation sterilization at any point during the manufacturing process. Except for providing component labels and accurate ingredients and directions to consumers, information on decomposability and recycling problems, packaging, and responsibilities should be included in the manufacturer’s specifications. China remains the largest cosmetic market in Asia. Indeed, according to the China Food and Drug Administration (CFDA) statistics, more than 3920 enterprises are qualified to produce cosmetics in China.
Organic Trend in China
The use of natural and organic cosmetics has become a global trend. In 2007, the world’s natural and organic cosmetics sales soared to nearly 7 billion USD$, a 1 billion USD$ increase on 2006 sales. Recent studies show that, for the most part of sales, growth in the natural and organic cosmetics industry is more significant in North America and Europe. As a result of the increasing demand for “green” products, organic cosmetics have become mainstream products. Specialty organic cosmetics stores, supermarkets, drugstores and pharmacies in North America and Western Europe also experienced rapid increases in sales. In 2012, many leading retailers began investing in organic cosmetics, and British supermarkets began using their own trademarks to sell organic cosmetics. However, most of the retail investment agents were in Germany, where even parity supermarket had launched certified natural cosmetics. L’Oreal acquired Sanoflore and The Body Shop in 2006. Organic Natural Resources launched a certified line of organic cosmetics under the Origins Organics label. Large cosmetics companies have been focusing on the scope of the global natural cosmetics industry mergers, acquisitions and investments.
Chinese certification for organic cosmetics
There are no standards for organic cosmetics in China. High quality organic cosmetics have complex formulas and processes, short shelf lives, and easy metamorphism. In order to increase preservation, anticorrosive ingredients and chemical compositions are often added into cosmetics. Therefore, it is difficult to break through the bottleneck of preserving pure organic cosmetics. This is a challenge for Chinese manufacturers in the short-term. As the production and use of organic cosmetics have stringent technical requirements, ordinary cosmetics would continue to be the mainstream consumption for a long time. However, when the techniques of producing and saving organic cosmetics mature, the market will dramatically change.
There is no authoritative certification body of organic cosmetics. However, it is common for enterprises to pay for certification. The label “organic” could easily be found on the market. Certification for organic cosmetics was canceled by the state certification and accreditation administration on July 1, 2012. There are currently no certified Chinese organic cosmetics in the international market.
A Fast-Growing Market
China is a developing market for organic cosmetics. In 2011, cosmetics sales were more than 100 billion of RMB in China, accounting for 6.8% of the global cosmetics market, next to the United States, Japan and Brazil. Over the past decade, China’s cosmetics market has grown rapidly and in 2013 was worth 146.8 billion of RMB. In 2016, cosmetics market scale is expected to reach 188 billion of RMB, an increase of more than 28% from 2013. During 2007-2015, China’s cosmetics market scale compound annual growth rate was at 15.8%, becoming one of the world’s fastest growing markets. Consumer knowledge on the benefits of organic cosmetic products is increasing, providing a prosperous outlook for this industry.
With an increasing demand for healthy products, China has now become a way for organic cosmetic brands to develop themselves and expand globally afterward. Following the market development, China has modified its cosmetic regulations, allowing for more companies to reach the Chinese consumers and expand in China.
— Daxue Consulting (@DaxueConsulting) July 5, 2017