China’s cosmetics market maintained steady growth in 2025, with total all-channel transaction volume reaching CNY 11,042.45 billion (USD 159.8 billion), marking a 2.83% year-on-year increase and crossing the CNY 1.1 trillion threshold for the first time, according to official data released by the China Fragrance, Flavor and Cosmetic Industry Association (CFFCIA). The country remains the world’s largest cosmetics consumer market, a position it has held for consecutive years.
Market Highlights: Steady Expansion and Structural Shifts
Against a backdrop of global economic volatility, China’s cosmetics sector demonstrated strong resilience. The 2025 growth rate followed a 3.61% rise in 2023 and a 2.80% increase in 2024, reflecting consistent consumer demand for beauty and personal care products.
Per the National Bureau of Statistics, cosmetics retail sales in 2025 rose 5.1% year-on-year, outpacing the overall growth rate of consumer goods retail (3.7%) and GDP (5.0%). Notably, “cosmetics” was listed as an independent category in the 2025 national economic and social development statistical bulletin, signifying official recognition of the industry’s evolution into a beauty and health sector integrating dermatology, biotechnology, and AI manufacturing.
Domestic Brands Dominate, Capture 57% Market Share
A standout trend of 2025 was the rise of domestic cosmetics brands, which accounted for 57% of the market share (CNY 4,688.4 billion in retail sales), outperforming foreign brands at 43% (CNY 3,536.9 billion). Domestic brands’ retail sales grew 8.64% year-on-year, nearly triple the 3.09% growth of foreign counterparts.
Leading domestic players, including Pechoin, Shanghai Jahwa, and Proya, strengthened their market positions through product innovation, digital marketing, and supply chain optimization. Emerging brands gained traction in niche segments such as sensitive skincare, clean beauty, and men’s grooming, leveraging platforms like Douyin and Xiaohongshu for targeted consumer engagement.
E-Commerce Drives Growth, Online Penetration Reaches 56.9%
Online channels remained the primary growth engine, contributing 56.9% of total cosmetics retail sales in 2025, up 1.6 percentage points from 2024. Online cosmetics sales hit CNY 4,611 billion, a 9.4% year-on-year increase, while offline sales (department stores, specialty stores) reached CNY 3,614.3 billion, up 2.4%.
Douyin and Taotian (Tmall, Taobao) led online channels, with GMV shares of 23.2% and 26.9% respectively. Livestreaming e-commerce, short-video marketing, and private domain traffic operations became standard strategies for brands to connect with consumers.
Innovation and Regulation Fuel High-Quality Development
Product innovation accelerated in 2025, driven by advancements in cosmetic ingredients and formulation technology. The National Medical Products Administration (NMPA) approved 2 new cosmetic ingredients and added 169 new filed ingredients (150 domestic, 19 imported), an 88% year-on-year increase. Key innovation areas included efficacy skincare (anti-aging, brightening), clean beauty, waterless formulations, and men’s care.
Regulatory oversight strengthened to ensure product safety and quality, focusing on children’s cosmetics, special cosmetics (e.g., whitening, sun protection), and products with anti-aging claims. The implementation of strict labeling and ingredient transparency requirements boosted consumer trust and encouraged industry-wide upgrades.
Export Growth Continues, Global Influence Rises
China’s cosmetics exports maintained robust growth in 2025, with total export value reaching USD 7.8 billion, a 9.2% year-on-year increase. Domestic brands expanded their global footprint, particularly in Southeast Asia, the Middle East, and Europe, leveraging cost advantages, product innovation, and cross-border e-commerce channels. The trade deficit in cosmetics continued to narrow, reflecting the growing competitiveness of Chinese cosmetics in the global market.
Outlook: Focus on Innovation, Localization, and Sustainability
Looking ahead, China’s cosmetics market is expected to maintain steady growth, driven by consumption upgrading, technological innovation, and brand localization. Key trends to watch include:
- Efficacy and personalization: Consumers demand products with clear efficacy and personalized solutions tailored to skin type, age, and concerns.
- Clean and sustainable beauty: Demand for natural, organic, and eco-friendly products will rise, driven by environmental awareness.
- Men’s grooming: The men’s cosmetics segment will continue to expand, driven by changing attitudes toward male beauty and grooming.
- Regulatory compliance: Brands will need to adapt to evolving regulatory requirements, particularly regarding ingredient safety, labeling, and advertising claims.
The Chinese cosmetics industry is transitioning from scale expansion to high-quality development, with domestic brands poised to play a more important role in the global beauty landscape.
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