Global Beauty Giants Show Signs of China Recovery With Sales Growth
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L’Oréal booth in Shanghai. Photo: VCG
L’Oréal SA and The Estée Lauder Companies Inc., two of the world’s leading cosmetics firms, have reported a resurgence in sales in China, signaling a recovery in the crucial beauty market following a period of sluggish growth.
On Thursday, L’Oréal, the French cosmetics powerhouse, announced full-year 2025 sales of 44.05 billion euros ($52 billion), a 4% increase compared to the previous year. While noting robust recoveries in both the U.S. and China during the second half of the year, the company highlighted a sharp acceleration in sales growth across the Chinese mainland. After starting the year with low single-digit growth, L’Oréal reported a mid-single-digit rise in China during the second half of 2025, driving a 4% sales increase in the broader North Asia region for the period.
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- L’Oréal’s 2025 sales rose 4% to €44.05 billion, with mid-single-digit growth in China and strong North Asia performance.
- Estée Lauder’s Q4 sales in China grew 13% to $928 million, driving a total quarterly increase of 6% to $4.23 billion and recovery to $401 million operating income.
- Both firms adapt strategies in China; L’Oréal invested in local brand LAN, while Estée Lauder focuses on VVIP customers and supply chain flexibility amid tariff risks.
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Who’s Who
- L'Oréal SA
- L'Oréal SA, a French cosmetics giant, reported €44.05 billion ($52 billion) in full-year 2025 sales, a 4% increase year-over-year. The company saw a significant sales acceleration in mainland China in the second half of 2025, contributing to a 4% rise in North Asia sales. L'Oréal also made a minority investment in Chinese skincare brand LAN in November 2025.
- The Estée Lauder Companies Inc.
- The Estée Lauder Companies Inc. (雅诗兰黛公司) is a U.S. cosmetics firm that reported strong performance in China, with organic net sales in mainland China rising 13% to $928 million for the quarter ending December 31. Total quarterly sales were $4.23 billion, a 6% year-on-year increase. The company is focusing on engaging VVIP customers and expanding independent stores in China. However, they anticipate potential earnings fluctuations of nearly $100 million for fiscal year 2026 due to tariffs.
- Shanghai Meicifang Investment Co. Ltd.
- Shanghai Meicifang Investment Co. Ltd. (上海美次方投资有限公司) is L'Oréal's venture arm. In November 2025, it made a minority investment in LAN, a Chinese skincare brand. This marks the fund's initial investment in a domestic skincare label, highlighting L'Oréal's strategy to deepen its local presence in the Chinese market.
- LAN
- LAN is a Chinese skincare brand specializing in oil-based products. L'Oréal made a minority investment in LAN in November 2025 through its venture arm, Shanghai Meicifang Investment Co. Ltd. This marks L'Oréal's first investment in a domestic Chinese skincare label. LAN has been a leading domestic brand in facial oil sales for two consecutive years.
- La Mer
- According to the article, La Mer is a brand owned by Estée Lauder. La Mer contributed, along with The Ordinary, to the 6% growth in Estée Lauder's skincare division, which is its largest segment. This growth occurred during a period of strong performance for Estée Lauder in the Chinese market.
- The Ordinary
- The Ordinary is a skincare brand under Estée Lauder's portfolio. It contributed to the 6% growth in Estée Lauder's skincare division for the quarter ending December 31. This growth reflects renewed consumer demand for premium skincare in China, helping multinational companies like Estée Lauder see a resurgence in sales.
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What Happened When
- 2024 and 2025：
- LAN dominated domestic facial oil sales in China for two consecutive years.
- November 2025：
- L’Oréal announced a minority investment in the Chinese skincare brand LAN via its Shanghai Meicifang Investment Co. Ltd.
- November 11, 2025：
- Double 11 shopping festival took place, influencing Estée Lauder's sales performance in China.
- Second half of 2025：
- L’Oréal reported a mid-single-digit rise in sales in China, contributing to a 4% sales increase in North Asia.
- Fourth quarter of 2025：
- L’Oréal reported an 11.5% surge in Dermatological Beauty revenue, with growth in consumer products and luxury divisions.
- December 31, 2025：
- Estée Lauder’s quarter ended, with Chinese mainland organic net sales up 13% year-on-year.
- February 5, 2026：
- Estée Lauder announced quarterly results, including $4.23 billion in sales and $401 million operating income.
- February 12, 2026：
- L’Oréal announced full-year 2025 sales results, highlighting accelerated sales growth in China and North Asia.
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