Xin Ou
Research expert covering Greater China
China’s cosmetics industry has regained its momentum after the COVID-19 pandemic, with every segment exhibiting growth. As the second-largest cosmetics consumer in the world, the Chinese cosmetics industry has become one of the fastest growing and most promising fields of business in the country.
If we categorize China’s cosmetics market by price range, both high-end (over 400 yuan) and low-end (less than 200 yuan) cosmetics are dominated by foreign brands, and the middle-end accounts for only a small part of the market. Over the past decade, urbanization, growing disposable income, and social media influence have boosted the demand for higher quality, premium brand products in the beauty and personal care market. According to a Statista consumer survey, approximately 29 percent of Chinese consumers preferred to buy luxury or premium cosmetics products, well ahead of their peers in South Korea and Australia. This has encouraged domestic brands to increase the investment in research and development (R&D), to offer cosmetic products with competitive quality at an attractive price, with the price range between 200 yuan and 400 yuan becoming the new battlefield.
Ever-evolving market landscape
Currently, skincare products dominate China’s cosmetics market, comprising over 60 percent of sales, with creams and moisturizers being the most popular products. However, the increasing number of Chinese consumers wearing make-up has sparked a notable surge in demand for color cosmetics. Among all color cosmetic products, base make-up boasts the largest market share and is experiencing the fastest growth pace.If we categorize China’s cosmetics market by price range, both high-end (over 400 yuan) and low-end (less than 200 yuan) cosmetics are dominated by foreign brands, and the middle-end accounts for only a small part of the market. Over the past decade, urbanization, growing disposable income, and social media influence have boosted the demand for higher quality, premium brand products in the beauty and personal care market. According to a Statista consumer survey, approximately 29 percent of Chinese consumers preferred to buy luxury or premium cosmetics products, well ahead of their peers in South Korea and Australia. This has encouraged domestic brands to increase the investment in research and development (R&D), to offer cosmetic products with competitive quality at an attractive price, with the price range between 200 yuan and 400 yuan becoming the new battlefield.
Online shopping dominates retail sales
Cosmetic products in China are predominantly distributed through e-commerce channels. Alibaba’s platforms remain the largest cosmetic retailer, while Douyin is catching up aggressively. Its combination of livestream e-commerce and short video has boosted business growth of numerous cosmetic brands, especially the native ones. In 2024, the retail sales of Kans, a homegrown brand, skyrocketed by 120 percent, with more than three billion yuan of sales generated on Douyin.Domestic brands leverage new trends
In China, Guochao (or “China-chic”) movement has been gaining popularity recently. Native beauty brands identify this trend as a rare opportunity to overtake foreign brands, scrambling to incorporate traditional Chinese patterns into product packaging and developing make-up products and perfumes blended with traditional Chinese aesthetics. This strategy has demonstrated its effectiveness, notably among Millennials and Generation Z, who have become the primary supporters of domestic brands. In addition, as Chinese beauty consumers are increasingly mindful of product ingredients, clean beauty has emerged as a new force in the cosmetics market. Creating safe, natural, and effective alternatives to conventional beauty products has become a focal point for cosmetics brands.
