Retail Update: China Beauty Accels to +12.6%, Aided by Festival Timing Shift

Research evidence excerpt

Retail Update: China Beauty Accels to +12.6%, Aided by Festival Timing Shift

ec-25, +4.5% in Jan/Feb-26, +8.3% in Mar-26, +4.7% in Apr-26, +2.5% in May-26, and Exhibit 4 - China Beauty & Personal Care

+12.6% in Jun-26. Market Share Leaders (2025)

Company Name China Mkt Share

L'Oréal Groupe 15%

China Beauty Market Trends: China remained the world’s largest cosmetics consumption market ProcterEstée Lauder& GambleCos Co,Inc The 7%5%

for a third straight year, with 2025 omnichannel beauty transaction volumes reaching ~$154B. ShiseidoLVMH MoëtCo HennessyLtd Louis Vuitton SA 3%3%

Beauty has been elevated under the 15th Five-Year Plan as a strategic sector tied to advanced ProyaUnileverCosmeticsGroup Co Ltd 3%2%

manufacturing and biotechnology. Domestic brands now hold >57% market share, up from 50% in ShanghaiJala (Group)PehchaolinCo Ltd Daily Chemical Co Ltd 2%2%

2022, reflecting strong local relevance and better ability to adapt to emerging trends. Consumer ShanghaiColgate-PalmoliveChicmaxCoCosmetics Co Ltd 2%2%

demand has moved away from viral hero products toward a more rational, knowledge-based model KunmingYunnan BaiyaoBotaneeGroupBio TechCo LtdCo Ltd 1%1%

focused on product efficacy, ingredient transparency, and emotional resonance, driving greater ChanelGiant BiogeneSA Holding Co Ltd 1%1%

selectivity in beauty spending. GuangdongHenkel AG &MarubiCo KGaABiotechnology Co Ltd 1%1%

Mao Geping Cosmetics Co Ltd 1%

Beiersdorf AG 1%

Share Fragmentation as Market Matures: China's prestige beauty market grew ~9% from 2020 . Shanghai Jahwa United Co Ltd 1%

Source: Euromonitor; Jefferies

to 2025 (~2% CAGR), close to ~US$30B, and ~45% of sales take place online — primarily Tmall.

The channel shift towards online has been the key contributor to growth by giving brands the ability