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 Douyin's low-price strategy drives platform competition. While Tmall/Taobao remains the dominant channel at 56.6% revenue share, Douyin expanded its share to 24.7% through aggressive pricing. Deyou emerged as the clear market leader with CN¥ 630 million in revenue and +30% YoY growth, bucking the overall market decline. The market is fragmenting further, with tail-end brands losing 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.

PurCotton dominates with a 20.3% market share and CN¥ 1.25 billion in revenue -- the only brand exceeding CN¥ 1 billion. 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 Deyou commanding a dominant 35.9% market share driven by celebrity-endorsed IP collaborations and Douyin-first strategy.

Deyou's wet toilet paper revenue reached CN¥ 1.09 billion with +35.2% growth, 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 primarily compete on Douyin and Tmall/Taobao with "99.9% antibacterial" and "zero additives" positioning.