Xin Ou
Research expert covering Greater China
Cosmetics market in China - statistics & facts
China has the world’s second-largest cosmetics market, which exhibits significant growth potential for further expansion. Amid growing beauty consciousness among Chinese consumers, product offerings have diversified across categories, including cleansing, skincare, hair care, makeup, and fragrances. While international brands maintain a strong presence in each segment, the competitive landscape has changed significantly in the past few years.
However, while launching attractive products and creating viral marketing campaigns can generate short-term popularity, long-term profitability depends on finding a path for sustainable development. 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. In response, established local brands have shifted their focus from offering lower prices to delivering higher quality, supported by heavy investment in research and development (R&D). As price wars fade from the spotlight, competition is becoming increasingly dynamic and exciting.
Promising outlook across all beauty segments
Currently, skincare is the largest segment, with creams and moisturizers being the most popular items. However, the increasing number of Chinese consumers wearing makeup has remarkably fueled sales in the color cosmetics sector, where base makeup boasts the largest market share. The hair care segment is flourishing, driven by broader adoption of products beyond shampoos and conditioners. Meanwhile, the fragrance market is experiencing soaring demand as busy consumers become increasingly aware of the stress-relieving and mood-enhancing benefits of pleasant scents.Online shopping leads retail sales
Cosmetic products in China are predominantly distributed through e-commerce channels. During the Singles’ Day sales in 2024, Alibaba’s platforms remained the largest cosmetic retailer, while Douyin gained ground aggressively. Douyin’s integration of livestream e-commerce and short video has boosted the growth of numerous cosmetic brands, especially the native ones. In 2024, Kans—a homegrown brand—saw its online retail sales skyrocket by over 98 percent, with the majority of those sales generated through Douyin.Domestic brands leverage new trends to outpace rivals
Recently, the Guochao (or “China-chic”) movement has been gaining popularity. 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 makeup products and perfumes blended with traditional Chinese aesthetics. This strategy has demonstrated its effectiveness, particularly among Millennials and Generation Z consumers, who have become key supporters of domestic brands.However, while launching attractive products and creating viral marketing campaigns can generate short-term popularity, long-term profitability depends on finding a path for sustainable development. 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. In response, established local brands have shifted their focus from offering lower prices to delivering higher quality, supported by heavy investment in research and development (R&D). As price wars fade from the spotlight, competition is becoming increasingly dynamic and exciting.
