Solid foundation helps nation's cosmetics industry bloom

China's domestic beauty market is experiencing a significant shift in power as local brands consolidate their positions and capture a record 57.37 percent market share. Data from 2025 indicates that the top 10 domestic beauty enterprises generated over 60 billion yuan in total revenue, reflecting a transition toward research-driven models and multi-brand portfolios. This robust performance, characterized by double-digit growth in retail sales, signals a sustained recovery and increasing global competitiveness for the nation's cosmetics sector.

The Chinese beauty market has reached a pivotal turning point, with domestic brands now commanding 57.37 percent of the market share following five consecutive years of growth. According to the China Association of Fragrance Flavour and Cosmetic Industries, the number of brands exceeding the 100-million-yuan transaction threshold rose to 839 in 2025, up from 746 in 2023. Proya maintained its dominant position as the industry leader for the third year, becoming the first domestic firm to surpass 10 billion yuan in revenue. Other major players like Chicmax Group and Shanghai Jahwa United also showed strong performance, with Chicmax nearing the 10-billion-yuan mark and Jahwa ranking third with 6.31 billion yuan in revenue.

Competition in the mid-tier segment has intensified, with companies ranked fourth through seventh—including Botanee Group, Chando, and Giant Biogene—all reporting revenues around the 5-billion-yuan level. Mao Geping Cosmetics notably joined this "5-Billion Club" following a 30.01 percent growth surge, while Marubi Biotechnology acted as the gatekeeper for the top 10 with 3.46 billion yuan. Overall, the top 10 domestic beauty companies saw their combined revenue climb to 60.072 billion yuan in 2025, up from 54.37 billion yuan the previous year, while net profits attributable to shareholders jumped from 4.883 billion yuan to 7.16 billion yuan. This financial expansion is being driven by a strategic shift from traffic-heavy marketing to R&D-focused investments and multi-brand portfolios.

Yatsen Holding Ltd exemplifies the sector's evolution, reporting its first-ever annual non-GAAP profit of 8.4 million yuan on revenue of 4.3 billion yuan in 2025. The company's skincare division saw a massive 63.5 percent revenue increase, now accounting for 53 percent of its total business, supported by a consistent R&D investment exceeding 3 percent of revenue for four consecutive years. Broadly, the National Bureau of Statistics reported that cosmetics retail sales reached 154.2 billion yuan in the first four months of the year, a 5.6 percent year-on-year increase. This growth significantly outpaces the general retail sales of consumer goods, which grew by only 1.9 percent, underscoring the beauty sector's role as a primary driver of market confidence and consumer spending.