According to the recent research from U.S. Commercial Service of Hong Kong, the imports of cosmetics, toiletry and skincare products in Hong Kong will likely grow at about 12% to 4,689,707 (thousand, USD) in 2017, despite a slower rate of spending on these products from mainland Chinese visitors to Hong Kong. Domestic demand from Hong Kong consumers will also remain strong.

Imports dominate Hong Kong’s large, lucrative and growing market for cosmetics, toiletries, and skincare products. Even though Hong Kong has manufacturing sector, the scale is not big and with most manufacturers concentrating on producing mid-priced toiletries and perfumes, particularly for the Chinese mainland, Southeast Asia. International brands play the dominant role in Hong Kong’s mid- to high-end market.

France, Korea, Japan, US and China are the other major suppliers. Special highlight on South Korea, which overtook France for the first time, became Hong Kong’s largest supplier of the US$2.4 billion market in 2016. 

With the arrival of independently travelling Chinese mainland tourists under the individual visitor scheme and the concomitant surge in Hong Kong’s cosmetics sales, many businesses are now eying the lucrative local cosmetics market. Hong Kong, a showcase for foreign brands wishing to target mainland customers, has continued to draw new brands to establish a presence in the city.

There are no import duties on cosmetics, toiletry and skincare products in Hong Kong and registration is not required for cosmetic products. The market is, however, very competitive, with the top ten brands accounting for about 70% of the market. Appointing a local distributor and working closely with that distributor to promote the brand, adapting products to include whitening ingredients, and modifying the packaging and product sizes to suit local tastes are important to remain competitive.

Source:
US Commerce Services of Hong Kong
https://www.export.gov/article?id=Hong-Kong-Macau-cosmetics-and-toiletries 

Hong Kong Trade Development Council
http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Cosmetics-and-Toiletries-Industry-in-Hong-Kong/hkip/en/1/1X47J8XF/1X006S6I.htm