The cosmetics market in China in 2025: consumers and trends

The cosmetics and skincare market in China reached a value of €69.7 billion in 2024. In 2025, the market is proving resilient despite an economic climate marked by low consumer confidence due to concerns about employment and the property market.

Are e-commerce and social e-commerce supporting the cosmetics market in China?

E-commerce platforms, particularly Douyin, have remained the driving force behind the growth of the Chinese beauty market. In July 2025, the gross merchandise volume (GMV) of Douyin’s beauty category reached nearly 20 billion yuan, an increase of 31.7% over the previous year.

Data from China’s National Bureau of Statistics showed that retail sales of cosmetics rose 4.5% year-on-year in July to 26.5 billion yuan.[1] In addition, online sales for the first seven months of the year recorded a strong increase of 9.2%.[2] Thus, consumers are cautious, but they continue to spend, albeit selectively. The “challenges” for cosmetics lie in the organisation and strategic use of traditional offline channels, while the overall market is supported by the strong performance of online commerce, particularly social e-commerce. The most successful brands are no longer just companies offering quality products: they are companies that analyse trends and master the algorithms and sales logic specific to platforms such as Douyin. Success now depends on deep operational integration with these dominant sales platforms, which requires specific teams and strategies for each platform.

It should be noted that the gross merchandise volume of the platform’s top 20 brands grew even faster, at 56.1% year-on-year, indicating a consolidation of power among the major players who have mastered the platform’s complex ecosystem.[3] Domestic brands are enjoying significant success and have a particularly good grasp of effective marketing and distribution strategies, as well as a better understanding of the domestic market . Hanshu, a brand owned by Chicmax Cosmetic Company Limited, has topped Douyin’s list of beauty brands for the seventh consecutive month.

Nevertheless, the key strategy for top-performing brands such as Hanshu, ELL and Proya is to rely heavily on physical stores. These shops allow them to directly control prices, brand messaging and first-hand customer data, reducing their dependence on third-party distributors or KOLs. This strategy of combining effective online sales with branded stores enables these companies to reach Chinese consumers and become leading players in the domestic market.

Growth in niche cosmetics segments

Certain cosmetics sectors are particularly promising in China, including:

• Anti-ageing skincare (serums, targeted treatments)
• Men’s products,
• Makeup that incorporates the concept of skincare (“makeup care”),
• Innovation in hair and body care.

Demand from Chinese consumers for targeted and innovative solutions is fuelling the growth of new niche categories. A report by Future Market Insights predicts that the global market for waterless cosmetic powders[4] will grow at a compound annual growth rate of 23.3% in China, far outpacing the overall market.[5] This growth is fuelled by the convergence of sustainability (water conservation) and innovation narratives. These innovative products come in more compact, convenient formats. They also often have a higher concentration of active ingredients. E-commerce is the dominant channel for this segment, accounting for approximately 51.5% of sales in 2025, which shows how much these new categories are being discovered and adopted online.

Understanding Chinese consumer demand in the cosmetics sector in China

A report published in 2025 by Kantar Worldpanel provides a useful framework for understanding this complex consumer behaviour.[6] Among the trends identified are:

• Fragmentation of demand: brand loyalty is declining, with consumers mixing and matching products from various niche and major brands to meet specific needs, rather than relying on a single brand.
• Demand linked to specific needs: purchases are increasingly driven by specific scenarios, whether it be morning or evening skincare routines or specialised care products for the rapidly expanding aesthetic medicine market.
• Convergence of functions: consumers now expect a single product to offer multiple benefits, such as a formula that moisturises and controls sebum, or a whitening product with anti-ageing properties.

Indeed, demand for premium, science-backed products that are considered effective is growing significantly in China. Consumers are willing to pay more for products that deliver tangible results that meet their specific needs. The high-end beauty products sector is expected to capture 53% of the market share in China by 2025, driven by this search for effective, high-quality solutions. [7]

The Chinese cosmetics market in 2025 is both promising and demanding

The growth of social e-commerce, the rise of niche segments and increased demand for high-end products offer real opportunities. But this momentum is accompanied by growing complexity: fragmented consumer expectations, mastery of platforms such as Douyin, a subtle combination of online and offline distribution, and rapid adaptation to new regulations.

In this context, success depends not only on product quality, but also on brands’ ability to integrate all these dimensions into a coherent strategy tailored to the local market.

At VVR International, we have been supporting cosmetics and skincare companies in their development in China for over 26 years. From defining market strategy to operational implementation, regulatory analysis and distribution monitoring, our expertise enables you to launch and sustain your business in China.

[1] July retail sales total up 3.7% year-on-year, growth rate up year-on-year, month-on-month decline stronger than the market (maintained), accessed 16 September 2025, http://pdf.dfcfw.com/pdf/H3_AP202508191730479501_1.pdf?1755622635000.pdf

[2] China’s e-commerce sector posts steady growth in first 7 months …, accessed 16 September 2025, https://english.news.cn/20250823/3b95dd6a31714941945f077739171eb0/c.html

美护及潮玩驱动新消费行业景气度上行, accessed 16 September 2025, https://pdf.dfcfw.com/pdf/H3_AP202508101724900044_1.pdf?1754840698000.pdf

[4] This refers to cosmetic products formulated without water or with a very low proportion of water.

[5] Waterless Cosmetics Powders Market – Future Market Insights, accessed 16 September 2025, https://www.futuremarketinsights.com/reports/waterless-cosmetics-powders-market

[6] Five key FOCUS areas for China’s beauty market in 2025 – Kantar, accessed 16 September 2025, https://www.kantar.com/inspiration/fmcg/five-key-focus-areas-for-chinas-beauty-market-in-2025

[7] China’s Cosmetics and Personal Care Market: Key Trends and Business Outlook, accessed 16 September 2025, https://www.china-briefing.com/doing-business-guide/china/sector-insights/china-s-cosmetics-and-personal-care-market-key-trends-and-business-outlook