5% of non-food categories are relying on consumption upgrades to grow
According to Mintel's data, the retail sales of China's toiletries products reached 36.738 billion yuan at the end of 2014. By 2019, this figure will reach 49.804 billion yuan. Although the retail sales are huge, the slowdown in growth is also a fact, with a growth rate of 4.9% in 2016. At present, the market sales of shampoo products have become saturated, and the growth of retail sales is mainly driven by the increase in unit price.


The growth of the care market will mainly come from consumption upgrades, while the younger generation is the main force driving the consumption upgrade. Consumers are more demanding on product efficacy, raw materials, safety, convenience and comfort and are willing to pay for these needs. “No silicone oil” is a typical representative of the consumption upgrade of individual care products.


In 2014, the concept of silicone-free oil was first introduced to China by the Japanese brand Mei Tao, but it was not until 2014 that “silicone-free oil” really started to fire in China. The new brand source was “made for silicone-free oil”, only 2 years old. , Ziyuan's channel outlets have exceeded 30,000, and scored 4.6% of the market share. The concept of “silicone-free oil” has been deeply rooted in people's hearts. In addition to the source of nourishment, there are new brands such as pink elephants that are cut from infants and toddlers. The market for silicone-free oil has matured. According to the plan of the parent company of Ziyuan, the amino acid shampoo will be “silicone-free oil 2.0”. The emerging life brand “Ziguan”, which was founded in 2015, is the amino acid shampoo and has obtained A+. Round financing.


So, in addition to silicone oil and amino acids, will there be a new direction for the upgrade of the product category? Fragrance care may be a possibility.