China is losing market share in the Asian natural and organic cosmetics market, according to Organic Monitor research that finds Chinese market growth rates are declining because of certain testing methods and formulation challenges.
The Asian natural cosmetics market is expanding by about 15% per year. Growing consumer awareness of health and wellness issues is boosting demand for organic and natural products. Few Chinese companies, however, are producing natural and organic cosmetics because of formulation and ingredient issues. There is low availability of certified organic ingredients and natural extracts, which are mainly imported into China. Further, offers Organic Monitor, Chinese formulators and product developers lack technical expertise in replacing synthetic ingredients with naturals in cosmetic formulations.
While the Chinese market for naturals has declined, markets such as India, Thailand and Singapore grow. Interestingly, Hong Kong is a Chinese anomaly, with a number of leading international natural and organic cosmetic brands maintaining a strong presence in Hong Kong while more than 20 new brands launched annually in Hong Kong. Further, Hong Kong may have the highest concentration of green cosmetic retailers in the world. Apivita, Jasmin Skincare, Aveda, Neal’s Yard Remedies, Jurlique, Melvita and Comvita are among the international brands with concept stores in Hong Kong.
This content is adapted from an article on www.gcimagazine.com.