Chinese beauty brands are increasingly recognized for their scientific innovation, transitioning from marketing-driven growth to one focused on research, technology, and product quality. At the 36th International Federation of Societies of Cosmetic Chemists Congress Awards Ceremony on October 1, China's cosmetic science and technology ranked second globally, advancing from ninth place in recent years. This achievement places China alongside France and behind only Japan, signifying rapid progress by domestic beauty companies in research and development.
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The recognition comes from a collaborative effort among various Chinese beauty brands, with over 18 submitting independent research projects or gaining acknowledgments at the IFSCC Congress. Notably, Proya Cosmetics earned the “Podium Fundamental Research Award,” making it the first Chinese beauty company to receive this honor. This award recognized Proya’s research into mitochondrial anti-aging mechanisms, detailing how mitochondrial DNA replication impacts skin fibroblast aging through the cGAS-STING pathway.
Proya made a significant impact at the congress, presenting 20 research findings, comprising four oral presentations and 16 posters, which is a record for entries by a Chinese cosmetics company at a single IFSCC event. Other brands, such as Shanghai Jahwa's Chando, also made strides by having 20 research projects accepted, bringing its total to 79, positioning it among the top global beauty companies for research volume. Yatsen Holding showcased nearly 20 research achievements covering five of its brands, including Perfect Diary and Dr. Wu.
The surge in scientific contributions from Chinese beauty companies is supported by increased investments in R&D. Since its establishment in 2016, Yatsen has allocated over 770 million yuan ($115 million) to research and development, with its R&D expense ratio exceeding 3 percent for four consecutive years. The company has established a global research network that includes locations in Guangzhou, Shanghai, and Toulouse, France, along with various laboratories and research partnerships.
Chinese brands are also diversifying their research, focusing on skin biology, ingredient innovation, efficacy testing, and artificial intelligence in product development. The challenge for the industry now lies in converting these scientific advancements into commercial success. Some companies have begun applying laboratory research directly to products; for example, Proya has integrated its mitochondrial anti-aging research into its product lines.
Despite improvements in scientific capabilities, experts emphasize the need for Chinese companies to increase their influence in global beauty science and industry decision-making. Yang Fan, China's education chair at IFSCC, noted that while China’s ranking has improved, greater international impact is essential.
Market performance reflects these advancements, as Chinese beauty brands controlled 57.37 percent of the domestic market by 2025, marking four consecutive years of market share growth after exceeding 50 percent in 2022. In the first half of 2026, sales of domestic beauty brands rose to 268.67 billion yuan, a 7.89 percent increase year-on-year, whereas international brands reached 250.23 billion yuan, growing by only 1.2 percent.
On digital platforms, domestic brands accounted for 65 percent of the top 20 beauty brands on Douyin. Analysts indicate a shift in the market from traffic-driven growth to value-driven competition, with new opportunities emerging in areas such as skincare-infused makeup and products that reflect traditional Chinese aesthetics.
Despite this growth, leading brands face tightening competition and more discerning consumers. Proya remains a dominant player in the market, with its Tmall flagship store ranking first among domestic beauty brands during the 618 shopping festival. Nevertheless, its financial results paint a mixed picture; Proya reported a revenue of 5.38 billion yuan in the first half, up 0.24 percent year-on-year, while net profit attributable to shareholders rose 46.26 percent to 1.17 billion yuan.
Yatsen is in the midst of a strategic transition, reporting a second-quarter revenue of 1.14 billion yuan, up 5.1 percent, but a net loss expanded to 90.8 million yuan from 19.5 million yuan a year earlier. Its skincare segment saw growth, with a 40.4 percent increase in revenue to 816 million yuan, while its makeup business declined by 35.8 percent as the company shifts focus from color cosmetics to skincare. As China’s beauty industry matures, scientific capability, product innovation, and global recognition are becoming critical competitive factors.