Innovation delivers global recognition for Chinese cosmetic companies

Chinese beauty brands are gaining global recognition for scientific innovation, marking a shift from rapid expansion driven by marketing and online traffic toward a new phase focused on research, technology and product quality.

At the 36th International Federation of Societies of Cosmetic Chemists Congress Awards Ceremony on Oct 1, China's cosmetic science and technology ranked second globally, up from ninth place only a few years ago, according to the federation.

China tied with France and trailed only Japan, highlighting the rapid progress of domestic beauty companies in research and development.

The breakthrough was not driven by a single company, but by a broader group of Chinese beauty players.

More than 18 Chinese brands and companies submitted independent research projects or received recognition at this year's IFSCC Congress, reflecting the industry's growing scientific capabilities.

Among Chinese companies participating in the global scientific event, Proya Cosmetics achieved a milestone by winning the "Podium Fundamental Research Award", becoming the first Chinese beauty company to receive the honor.

The award recognized research on mitochondrial anti-aging mechanisms, exploring how mitochondrial DNA replication affects skin fibroblast aging through the cGAS-STING pathway.

Proya presented 20 research achievements at the congress, including four oral presentations and 16 posters, setting a record for the largest number of entries by a Chinese cosmetics company at a single IFSCC event.

Other Chinese companies also expanded their international scientific presence.

Shanghai Jahwa's Chando brand had 20 research projects selected this year, bringing its cumulative number of accepted papers at the congress to 79, ranking among the top global beauty companies by research volume.

Yatsen Holding presented nearly 20 research achievements covering five brands, including Perfect Diary, Dr. Wu, Galenic and Eve Lom.

Behind the rise of Chinese beauty science is increasing investment in R&D.

Yatsen, for example, has invested more than 770 million yuan ($115 million) in R&D since its establishment in 2016, with its R&D expense ratio exceeding 3 percent for four consecutive years.

The company has built a global research system covering Guangzhou, Guangdong province, Shanghai and Toulouse, France, alongside multiple laboratories and research partnerships.

Chinese beauty companies are also expanding their research focus beyond traditional formulations, moving into areas such as skin biology, ingredient innovation, efficacy testing and artificial intelligence-assisted product development.

The industry's challenge now is transforming scientific achievements into commercial success.

Many companies have begun applying laboratory research directly to products.

Proya's mitochondrial anti-aging research has been incorporated into its energy series products, while its sunscreen film technology has been applied to its sunscreen line.

However, industry experts said Chinese companies still need more influence in global beauty science and industry decision-making.

"Although China's ranking has improved significantly, Chinese beauty companies still need greater international influence," said Yang Fan, China's education chair at IFSCC.

The rise in scientific capabilities comes alongside stronger market performance from Chinese beauty brands.

According to Qingyan Intelligence data, domestic beauty brands accounted for 57.37 percent of the country's beauty market in 2025, marking the fourth consecutive year of market share gains after surpassing 50 percent in 2022.

In the first half of 2026, sales of domestic beauty brands reached 268.67 billion yuan, up 7.89 percent year-on-year, compared with 250.23 billion yuan for foreign brands, which increased 1.2 percent.

Domestic brands grew more than six times faster than international competitors during the period.

Chinese brands also strengthened their presence on digital platforms. Among the top 20 beauty brands on Douyin, domestic brands accounted for 65 percent.

Industry analysts said the market is shifting from traffic-driven growth toward value-driven competition, with emerging opportunities in areas such as recombinant collagen, skincare-infused makeup and products incorporating traditional Chinese aesthetics.

Despite industry growth, leading Chinese beauty companies face challenges as competition intensifies and consumers become more selective.

Proya remains one of the strongest domestic beauty players. During the first half, its Tmall flagship store ranked first among domestic beauty brands, and the company maintained the top position during the 618 shopping festival.

However, its latest financial results reflect a mixed picture. Proya reported revenue of 5.38 billion yuan in the first half, up 0.24 percent year-on-year.

Net profit attributable to shareholders increased 46.26 percent to 1.17 billion yuan.

Yatsen is also undergoing a strategic transition. The company reported second-quarter revenue of 1.14 billion yuan, up 5.1 percent year-on-year, marking the seventh consecutive quarter of growth. However, net loss widened to 90.8 million yuan from 19.5 million yuan a year earlier.

The company's skincare business grew strongly, with revenue rising 40.4 percent to 816 million yuan, accounting for 71.5 percent of total revenue.

Growth was driven by brands including Galenic, Dr. Wu and Eve Lom. Meanwhile, its makeup business declined 35.8 percent, reflecting the company's shift away from color cosmetics toward skincare.

As the beauty industry in the country enters a more mature phase, scientific capability, product innovation and global recognition are becoming increasingly important competitive factors.