China’s Beauty Market Is Back — But It No Longer Tolerates Path Dependence

China’s beauty market is growing again. But this time, the recovery comes with a clear condition: the era of easy growth is over.

For nearly three years, the industry has been asking—sometimes with hope, sometimes with irony—whether the market would bounce back. The first quarter of 2026 has delivered a tentative answer. Growth has returned, with beauty e-commerce and retail sales both outperforming the broader consumer economy.

In the first quarter of 2026, China’s mainstream beauty e-commerce GMV reached RMB 132.3 billion, a year-on-year increase of 6.83%. Data released by the National Bureau of Statistics showed that from January to March, total retail sales of cosmetics reached RMB 122 billion, up 5.9% year-on-year, outperforming the overall consumer market.

Yet this rebound is far from universal. The market that emerges is sharper, more selective, and far less forgiving. Years of rapid domestic brand expansion, the recalibration of global luxury players, and the elimination of weaker competitors have fundamentally reset the rules. China is no longer a market where scale alone guarantees success. It is now defined by highly educated consumers, hyper-efficient channels, and one of the most competitive supply chains in the world.

Consumer Side: Skincare Diversifies, Makeup Returns

The most visible shift is happening at the category level. Skincare, once the undisputed engine of growth, is slowing. In contrast, makeup, fragrance, and personal care are accelerating, driven by double-digit gains. This divergence is not cyclical—it signals a structural change in how consumers think about beauty.

Breaking down Q1 data shows uneven category growth. Skincare, body care, and essential oils recorded GMV of RMB 77.869 billion, with growth under 1%. Makeup, fragrance, and beauty tools reached RMB 34.113 billion, up 18.5%. Haircare and wigs reached RMB 16.142 billion, up 17.29%.

This slowdown in skincare is also reflected in financial results. Proya Group reported a 9.28% decline in skincare revenue in 2025, while makeup grew 14.86% and haircare surged 117.85%.

As a leading domestic company, Proya’s shift reflects broader market sentiment: skincare is under pressure, while makeup and personal care are taking over. This signals a structural shift in consumption, rather than isolated strategic missteps.

At the heart of this shift is a redefinition of skincare itself. Consumers are moving away from repetitive, ritual-based routines toward outcomes that are faster and more measurable. The rise of efficacy skincare, the normalization of light medical aesthetics, and the expansion of post-procedure care are all part of this transition. In response, brands are leaning heavily into dermatological science, clinical validation, and service integration, attempting to reposition skincare as a hybrid between cosmetics and healthcare.

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