China is building a 10.2-sq-km cosmetics industrial park in the Baiyun district of Guangzhou, the capital of Guangdong province in the southeast of the country, South China Morning Post reports.Â
Construction work on the project began earlier this year. When complete, it is expected to produce about $1.3bn of products a year, further establishing Guangzhou as the centre of China’s cosmetics industry.
At present it has some 1,789 firms, making about 40% of the national total, according to the Baiyun District Science, Industry, Commerce and Information Technology Bureau.
Bureau director Chen Wande told the Post: "The biggest challenge for development of the local cosmetics and skincare industry is the lack of land. So the city and the district created the park by buying land from villagers."
As of November 2020, 12 companies had agreed to invest around $534m in factories at the park.
The bureau wants the Beauty Park to attract more international companies to set up in China and to help domestic firms challenge global beauty behemoths such as L’Oréal, Unilever and P&G for a share of the $380bn global market for soap, perfumes and cosmetics, as well as the $52bn domestic market.
L’Oréal, the world’s largest beauty company, reported a 27% leap in sales in mainland China last year, in a market that grew 4%.
Image: Photograph by Shane Devlin/UnsplashÂ
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