China's CN¥ 13.9B Towel Market: Three Categories, Three Paths

Executive Summary

China's CN¥ 13.9 billion towel products market reveals three divergent trajectories in the December 2023 to November 2024 period. Regular wet wipes declined -12.6% to CN¥ 4.73 billion as platform price wars compressed margins, cotton soft towels grew +4.9% to CN¥ 6.15 billion driven by premium facial care demand, and wet toilet paper surged +11.5% to CN¥ 3.05 billion on celebrity-endorsed innovation. This analysis examines the forces reshaping each category and the brands winning across China's e-commerce platforms.

Regular Wet Wipes: Price Erosion Drives -12.6% Revenue Decline

China's regular wet wipes market reached CN¥ 4.73 billion but experienced a -12.6% YoY revenue decline despite stable demand growth of +3.5% in sales volume. The fundamental challenge is structural price erosion: average selling prices fell -15.5% YoY as Douyin's (抖音) aggressive low-price strategy forced competitive responses across platforms.

Deyou (德佑) emerged as the clear market leader with CN¥ 630 million in revenue and +29.9% YoY growth, bucking the overall market decline through balanced pricing (CN¥ 27.4 average) and product diversification in baby hand-and-mouth wipes. Babycare, ranked second at CN¥ 350 million, faces margin pressure with the highest average price (CN¥ 49.8) and -17.3% decline.

Platform dynamics shifted meaningfully over the period:

• Tmall/Taobao (天猫/淘宝) contracted from 60.6% to 56.6% revenue share (-4.0pp)
• Douyin expanded from 22.1% to 24.7% (+2.6pp) through content-driven commerce
• JD.com (京东) gained modestly from 17.2% to 18.6% (+1.4pp)

Douyin gains +2.6pp share as Tmall/Taobao contracts -4.0pp

Cotton Soft Towels: The Only Growing Category at +4.9%

Cotton soft towels represent the market's bright spot, reaching CN¥ 6.15 billion with +4.9% YoY growth. PurCotton (全棉时代) dominates with 20.3% market share and CN¥ 1.25 billion in revenue -- the only brand exceeding CN¥ 1 billion in the category.

The category shows clear bifurcation between premium baby-focused brands and value-oriented adult facial care products:

• Premium segment: PurCotton, Bc Babycare, and Deyou target baby and toddler care with average prices of CN¥ 54-73 per unit
• Growth segment: Mid-tier brands focus on adult face towels with "oversized and thickened" and "hanging dispenser" positioning at CN¥ 16-38
• Innovation trend: Hanging dispenser products showed notable revenue share growth as consumers adopt permanent bathroom installations

Douyin's role in cotton soft towels is expanding faster than in wet wipes, reflecting the category's visual appeal for short-video marketing. Brands like Deyou have leveraged Douyin-first strategies to build rapid awareness among younger consumers.

Wet Toilet Paper: Fastest Growth at +11.5% YoY

Wet toilet paper is the standout performer, reaching CN¥ 3.05 billion with +11.5% YoY growth. Deyou commands a dominant 35.9% market share through celebrity-endorsed IP collaborations -- particularly the Joy of Life Season 2 partnership with spokesperson Zhang Ruoyun -- and a Douyin-first distribution strategy.

Wet toilet paper revenue grows +11.5% YoY to CN¥ 3.05 billion

Cross-Category Dynamics: Deyou's Multi-Category Dominance

Deyou's cross-category success is the defining story of China's towel products market. The brand ranks #1 in regular wet wipes (CN¥ 630 million, 13.4% share), #3 in cotton soft towels, and #1 in wet toilet paper (CN¥ 1.09 billion, 35.9% share). This multi-category dominance stems from:

• Consistent investment in Douyin-first distribution across all categories
• Celebrity endorsement strategy (Zhang Ruoyun) driving brand awareness
• Competitive pricing that undercuts premium incumbents without sacrificing perceived quality
• Rapid product innovation aligned with consumer trends (pure water, antibacterial)

In contrast, traditional leaders like Vinda and Kleenex face margin pressure as platform competition and Deyou's aggressive expansion reshape competitive dynamics.

Key Takeaways

• China's combined towel products market totals CN¥ 13.9 billion with sharply divergent category trajectories
• Regular wet wipes declined -12.6% as Douyin's price competition eroded average selling prices by -15.5%
• Cotton soft towels grew +4.9%, the only positive category, led by PurCotton's CN¥ 1.25 billion in revenue
• Wet toilet paper surged +11.5% with Deyou's celebrity-backed Douyin-first strategy capturing 35.9% share
• Douyin gains market share across all three categories, fundamentally reshaping distribution and pricing

About the Data

This analysis draws on Moojing Market Intelligence data covering December 2023 to November 2024. Moojing tracks 400,000+ brands across 30+ e-commerce platforms, representing 58-65% of China's online retail GMV. For full methodology and additional insights, see the complete Towel Products whitepaper.