The Personal Care Products Council released the new PWC study, entitled ‘Economic and Social Contributions of the Personal Care Products Industry in China’, in which the global professional services firm has projected an annual growth rate of 12 per cent for the industry through 2020.
Essential marketplace
The study also found that the industry was directly or indirectly responsible for the employment of more than 2.5 million Chinese workers, accounting for 53 billion RMB in labor income and contributing 164 billion RMB to the Gross Domestic Product (GDP).
"China is an essential marketplace for the global cosmetics industry," said Lezlee Westine, president and CEO of the Personal Care Products Council (PCPC).
"Chinese families use products every day in their beauty and grooming routines, and demand the highest quality. The manufacture and distribution of personal care products is an increasingly important sector of the Chinese economy, and the industry offers new opportunities for women, who represent 80 percent of the industry's workforce."
Research and development
According to the study, companies in the cosmetics industry research, develop, produce, market and distribute personal care products for use at home and in salons and spas.
While globalization has led to a rise in imported products, domestically manufactured personal care products represent the majority of the Chinese market, where exports exceed imports.
Mr. Zhang Jingyuan, secretary general of the Chinese Association of Fragrance, Flavors and Cosmetic Industries (CAFFCI), praised the study, saying, "PwC has highlighted the vital role cosmetic companies play in the Chinese economy.”
“The industry is a growing source of employment in China, and is responsible for an increasing share of exports and investment in manufacturing, research and development."
High employment of women in industry
As well as the impact on economic growth in China, the employment of women is also a big contributing factor of the industry.
Women make up 80 per cent of the workforce in the industry, compared to an average of 35 per cent across the entire Chinese workforce.
The industry is also a leader in energy efficient manufacturing practices, and many of the industry's manufacturers are using renewable energy sources and leveraging technology to conserve water use and minimize waste.
The personal care products industry also makes charitable contributions that benefit public welfare in China, with a particular focus on disaster relief, health, education and cultural programs.