Essence products, with their characteristics of high efficacy, high ATV, and high repurchase rate, have become a must-compete section for brands in China and overseas.
From basic skin care to essence, consumers’ requirements for facial care are becoming more and more refined, and the essence market has also risen. Recently, according to the data of 2022 Facial Essence Online Consumption Trend Insight by Guoji-Feigua Data, essence products, with their characteristics of high efficacy, high average transaction value (ATV), and high repurchase rate, have become a must-compete section for brands in China and overseas.
According to previous data from Beauty Data.AI, China’s facial essence sales exceeded 17 billion yuan ($2.363 billion) in the past year, accounting for 10.5% of stable sales in the area of skincare.
Data show that the 2022 facial essence market CR5 in TikTok China is only 16%, and the industry concentration is low. For a long time, the highly technically advanced essence market has been held by international head brands such as Estee Lauder, Olay, etc., which have shown a solid market share in the TikTok China platform. Meanwhile, local Chinese brands are also following up on the victory. According to Feigua data, among the Top 10 brands in facial essence sales from January to July 2022, Chinese local brands occupied a total of 6 seats and maintained high growth.
It is worth noting that anti-aging has become the focus of Chinese consumers of all ages, and the post-00s have joined the anti-aging group. In this year’s Tmall 618 shopping festival, the search volume of “anti-aging” keywords jumped 5 times compared to last year, and the number of orders placed by post-00s was 3 times more than last year. However, the main consumer of the facial essence category is still the pre-mature age group above 31 years old, accounting for more than 50%, and the demand for wrinkle removal and anti-aging is particularly strong.
According to a report released by Tmall FMCG industry, TMIC, and Ipsos, “Vitamin-C for morning and Vitamin-A Alcohol” has been popular since last year, with a year-on-year growth of 217% in keyword searches. Moreover, in the concept of anti-aging, in addition to the popular “antioxidant”, many brands target the “anti-glycation” section for product development to occupy the market share early.
With the rise of the ingredient-centric group, Chinese consumers are paying more and more attention to the efficacy of products. Among them, the main anti-aging efficacy of astaxanthin, and hyaluronic acid ingredients market enthusiasm has been high. As Chinese consumers become more knowledgeable and experienced in skincare, they continue to learn about their skin type and needs and begin to put forward higher demands on the concentration, purity, and ratio of ingredients. This has also led to the development of facial essences in the direction of precision and scientific efficacy.
It is worth mentioning that in recent years, many brands have launched new facial essence in a small dosage form. These products have achieved innovation in multiple dimensions such as packaging materials, ingredients, formulations, and technology. For example, the disposable serum is loved by many Chinese consumers by virtue of its aseptic plastic seal, compactness, and lightness. According to Feigua Data, in 2022, “disposable” has become a hot keyword for mid-to high-end head brands in the facial essence market.