With 7.5 million citizens and a GDP of $4,862,727 per capita, Hong Kong is one of the markets not to be overlooked for cosmetic brands looking to do business overseas. This is why the Team France Export of Business France encourages French manufacturers to consider this area.
The average beauty basket in Hong Kong is 400 euros per year per inhabitant. It is therefore a country where consumers are aware of beauty care.
Nevertheless, this usually dynamic market has been shaken by the coronavirus crisis.
“The sharp drop in retail sales in Hong Kong (-24.3% in value and -5.5% in volume) over the year 2020 is just the inevitable consequence of the Covid-19 epidemic. The cosmetics sector saw its sales decrease by 46% (in value) within the specialty retail channel, reaching a total of only 2.4 billion euros. This decline was mitigated by consumers prioritizing hygiene products (soaps, oral and hair care) over those that seem less essential (perfumes, make-up and skincare),” comments Business France.
Trends
Some product categories are more consumed than others in Hong Kong.
In order, we find (in percentage of sales):
• Skin care (60.9%)
• Hair care (10.2%)
• Make-up (7.5%)
• Body hygiene products (6.9%)
• Oral care (6%)
• Perfumes (3.3%)
Market characteristics
The market is mostly dominated by international brands. There are only 80 local manufacturers with entry-level offerings. South Korea is the leading supplier in the skin care and make-up category (28.4% market share). Japan is the leading …
