Market snapshot

In 2005 Hong Kong remained the largest cosmetics market in the Asia-Pacific, leading Singapore, Malaysia, Thailand, Indonesia, India, Australia and Japan. Hong Kong residents spend an average US$116 per month on cosmetics, up from US$102 in 2004. The regional monthly average is US$83.

While Hong Kong locals have always been strong consumers, sales since 2004 have also been boosted by an influx of Chinese tourists who spend up big on cosmetics during their frequent Hong Kong visits.

The Chinese are now the highest per capita spenders of all visitors to Hong Kong. In 2005 Hong Kong had over 11.3 million visitors from mainland China, up 2.4 percent from the previous year. Traditionally, the biggest spenders are visitors from Guangdong Province and the Pearl River Delta.

In 2004, Hong Kong consumers spent HK$3,845 million on cosmetics (net import minus re-export). Skin care products were the most popular (63.2% of the total spend) followed by perfume (20.6%), make up (14.5%) and other products (1.7%).

Over the last decade Hong Kong cosmetics consumption has more than doubled (from $HK1,475 million in 1994 to $HK3,051 million in 2004). In 2004 consumption was almost 24% higher than the previous year.

In China, cosmetics is the fifth-largest consumer market after real estate, cars, telecommunications, education and tourism. Market projections show cosmetics growing by 13% annually to reach sales of RMB$100 billion by 2010.

In 2004, cosmetics sales in China were RMB$85 billion, up 13% from 2003. In the early 80s, Chinese consumers spent an average of RMB$1 on cosmetics each year. This had increased to RMB$25 by late 2000. In Beijing, Shanghai and Guangzhou the average annual spend on cosmetics is RMB$150-180.