Local Labels Dominate China’s $141 Billion Cosmetics Market
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Domestic cosmetics brands tightened their grip on China’s $141 billion beauty market in 2025, seizing nearly 60% of total sales as fast-moving supply chains and savvy e-commerce tactics pushed foreign rivals further to the margins.
This dominance underlines the mounting challenge facing international conglomerates in China. Local brands, with their ability to adapt swiftly to changing consumer tastes, helped push total cosmetics transactions past 1.1 trillion yuan ($141 billion) for the first time, according to the China Association of Fragrance Flavor and Cosmetic Industries. The group reported Tuesday that domestic brands commanded a 57.4% market share in 2025, the fifth straight year of growth.
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- Domestic brands held 57.4% of China’s $141 billion cosmetics market in 2025, marking five years of growth.
- Local firms’ quick production adaptations and advanced e-commerce strategies outpaced foreign competitors; French, U.S., Japanese, and Korean brands held 16.1%, 11.7%, 6.4%, and 4% market shares.
- Online sales made up 65.4%, with most purchases under 300 yuan; R&D spending by listed local firms rose to 3.24% of revenue by mid-2025.
- L'Oréal
- L'Oréal-led French firms, despite a challenging market in China in 2025, ranked second among foreign brands with a 16.1% market share, generating 75.5 billion yuan in sales. This highlights their position as a significant foreign player, even as domestic brands dominate with nearly 60% of the overall market.
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