Personal care spending in Hong Kong to reach $48.2b in 2024

By 2028, it is projected to reach $58.6b.

The personal care and effects segment in Hong Kong is expected to exhibit robust growth in 2024, with a year-on-year expansion of 4.6%, pushing total spending to $48.2b (HKD374.5b), According to a report by Fitch Solutions.

“Hong Kong, China's personal care and effects market is set for steady growth from 2024 to 2028, driven by high disposable incomes both by local consumers and also the substantial expatriate community,” the report stated.

“Consumer demand is shaped by a focus on personal appearance and a broad selection of products that cater to various price points, including both inexpensive and high-end options,” it added.

despite this positive trend, expenditures remain below the HKD331.1b recorded in 2019, highlighting a slower recovery trajectory to pre-COVID levels.

Personal effects products will dominate the spending surge, accounting for over half at HKD278.2b throughout the year.

The market's growth is also fueled by a strong emphasis on personal appearance and a diverse array of products catering to various price points, ranging from economical to premium choices. 

Notably, there is a discernible trend towards organic and eco-friendly personal care options. 

The market landscape is further shaped by a burgeoning shift towards online sales platforms, complementing the existing network of physical retail outlets and aligning with Hong Kong's tech-savvy consumer base.

The competitive landscape of the Hong Kong personal care market features major international players such as Unilever and Sephora, alongside local giants like Sa Sa and Chow Tai Fook.

“The sector is propelled by a consumer demographic that places a high value on personal grooming, offering an extensive variety of products that span from budget-friendly to deluxe categories,” the report noted.

Additionally, there is also a growing demand for organic and eco-friendly products and online shopping platforms.

Meanwhile, factors similar to those impacting the broader fashion industry are expected to affect personal care spending negatively in Hong Kong. A shrinking and aging population will reduce the prime consumer group of young adults, who are significant purchasers of personal care products. 

“This group has the highest demand for personal care products, paying greater attention to maintaining their physical appearance,” the report said.

Moreover, the sector heavily depends on tourist spending, especially from Mainland China. 

Despite these challenges, local economic growth is expected to sustain moderate expansion, driven by ongoing demand for luxury brands. As regional tourism improves after 2023, the sector is forecasted to recover gradually, with annual growth rates averaging 4.9%. 

By 2028, personal care spending is projected to reach $58.6b (HKD455.3b)