Moojing Market Intelligence Towel Products Research Report

Key Finding 1

China's regular wet wipes market reached CN¥ 4.73 billion in the December 2023 to November 2024 period, declining -12.6% YoY as stable demand growth (+3.5% volume) was offset by falling average prices (-15.5% YoY).

The category faces a structural pricing challenge as low-price strategies in content-led commerce intensify competition between channels, with content-led commerce gaining share through aggressive pricing. Against the overall market decline, Deyou's celebrity IP collaborations and content-led approach show what worked in the category. The market is fragmenting further, with smaller brands ceding share to both premium and value-oriented competitors.

Key Finding 2

Cotton soft towels are the only category showing growth, with the market reaching CN¥ 6.15 billion (+4.9% YoY), driven by consumer demand for premium facial care and baby products.

The category shows clear bifurcation: top brands target baby and toddler care with premium pricing (CN¥ 54-73 per unit), while fast-growing mid-tier brands focus on adult face towels with "oversized and thickened" and "hanging dispenser" positioning at lower price points (CN¥ 16-38). Hanging dispenser products showed notable revenue share growth.

Key Finding 3

Wet toilet paper is the fastest-growing category at +11.5% YoY, reaching CN¥ 3.05 billion, with celebrity-endorsed IP collaborations and a content-commerce-first strategy, as at Deyou, driving the category.

Deyou's growth in wet toilet paper was powered by its Joy of Life Season 2 collaboration with spokesperson Zhang Ruoyun. The category shows strong innovation in water purification technology, with EDI pure water, hot spring water, and deionized ultra-pure water emerging as key product differentiators. New entrants compete on antibacterial and "zero additives" positioning.