How Chinese ingredients are disrupting global beauty

The era of massive marketing budgets for local brands to capture market share is over. Over the past few years, China’s domestic brands have carved a new path, moving beyond short-term buzz to long-term innovation. Led by trailblazers like Proya, the sector is now centered on developing proprietary active ingredients, marking a new stage in skincare. What once seemed like obscure scientific jargon — collagen peptides, hyaluronic acid, ceramides — or exotic names like purslane, Pearlbright Pro, and black cohosh, now strike a chord with Chinese consumers, particularly beauty aficionados who meticulously check product ingredient lists. This shift has birthed powerful, results-driven products that now dominate sales charts across leading platforms. Notably, during the 2023 Singles’ Day presales, Proya’s third generation Ruby series, enhanced with its proprietary flaxseed cyclic peptide, outperformed competitors to claim the top spot in its category on day one. Proya’s Ruby series exemplifies how locally developed ingredients can elevate a brand, mirroring the impact of global counterparts like Estée Lauder’s Advanced Night Repair and SK-II’s Pitera Essence. Rise of ‘China ingredients’ Referring to locally sourced and scientifically developed components, the term “China ingredients” (中国成分) has emerged as a defining element of the country’s beauty industry. These include biologically active molecules like recombinant collagen, as well as traditional botanical extracts such as Rhodiola and Chinese licorice root. The market is growing robustly, with sales of products featuring native ingredients expanding 9.3% year-on-year between January and August 2023. Projections suggest the sector will double in size to 100 billion RMB ($13.7 billion) within the next five years. Success is underpinned by significant R&D investments. Leading players like Bloomage Biotech and Yunnan Botanee Bio-Technology Group have doubled down on innovation, as the marketing battle has become unsustainable. Bloomage’s breakthrough with Bioyouth™-EGT Pure, a high-purity ergothioneine derived through bio-synthesis, showcases the company’s biotech prowess. Similarly, Botanee has pioneered the extraction and commercialization of substances from plants like Gentian and Southern Yew, aligning with the industry’s move toward natural, efficacious ingredients. Biotech ingredients Chinese brands are increasingly rivaling international giants by developing unique active ingredients. The success of recombinant collagen, initially developed in China and now featured in L’Oréal’s bestselling product — Age Perfect Nectar Royal cream, known as “honey pot” (小蜜罐) in China — highlights the global appeal of local innovation. Proya’s foray into peptides, for instance, mirrors the way international brands capitalize on hero ingredients. After achieving breakthroughs in 2020, Proya launched its Ruby series, designed to combat early signs of aging. The range has since become a benchmark for how science-driven skincare can resonate with young, efficacy-focused consumers. Similarly, Guyu, known for its advanced whitening solutions, has harnessed an upgraded version of glabridin, derived from liquorice root, marketed as “extreme glabridin.” Using nano-encapsulated technology, the ingredient targets melanocytes to deliver unprecedented brightening effects, making it a standout choice for consumers seeking targeted solutions. Plant-based ingredients While biotech ingredients dominate headlines, plant-based formulas remain a cornerstone of China’s beauty innovation. Traditional Chinese Medicine (TCM) provides a deep reservoir of inspiration, enabling brands to weave in cultural storytelling with proven efficacy. For instance, Herbeast (东边野兽), a rising star in the C-beauty landscape, has redefined how TCM is integrated into modern formulations. The brand’s use of Ganoderma lucidum (reishi mushroom), revered for its antioxidant properties, showcases the appeal of traditional yet scientifically validated ingredients. Another leader in this category is Winona, whose proprietary purslane extract is renowned for its soothing and anti-inflammatory benefits. Its products have earned a loyal following among consumers with sensitive skin, further solidifying its market position. A competitive necessity The surge in demand for “China ingredients” isn’t limited to niche audiences. In October and November 2024, over 16 domestic beauty brands surpassed 100 million RMB ($13.7 million) in sales, with more than 59 brands doubling or tripling their revenue year-on-year. Notably, 40 special sessions featuring domestic beauty brands and their active ingredients’ properties exceeded $10 million RMB ($1.37 million) in sales. This growth reflects changing consumer priorities. According to the 2023 Chinese ingredient market insight report by Qingyan Intelligence, 83% of survey respondents cited product ingredients as their primary purchase driver, far outpacing endorsements by celebrities or influencers. The report also underscores the appeal of products that blend safety, efficacy and cultural resonance. China’s homegrown beauty brands have come a long way from relying solely on affordability and aesthetic appeal to capture consumer attention. Adapting to market trends and evolving consumer demands, domestic brands, such as Winona, Yuze, and Runbaiyan, have gradually shifted their focus toward natural botanical ingredients, clean formulations, and now, cutting-edge technology. Notably, curated lists of “must-try Chinese beauty brands” by popular beauty influencers have become go-to references for Japan’s Gen Z shoppers in recent years. China’s influence in the global beauty market is also evident in export data. According to customs statistics, from January to November 2023, China’s beauty product exports to South Korea surged to $128 million (935 million RMB), up from $35 million (258 million RMB) during the same period last year. Japan, too, has become a key market for Chinese beauty brands. The Japan Cosmetic Importers Association reported that by the first half of 2023, imports of Chinese cosmetics grew approximately 45% YoY, climbing to second spot. R&D and policies The transformation of China’s beauty landscape has been fueled by R&D. From 2022 to 2023, domestic brands’investment in research skyrocketed. For instance, Bloomage Biotech allocated 3.88 billion RMB ($5.3 billion) to innovation while Botanee BIotech increased its R&D budget by 131.6% to 2.78 billion RMB ($3.8 billion). Even smaller players like Guyu and Herbeast have invested heavily to refine their core offerings. This commitment has translated into tangible results. During the 2022 Single’s Day event, Chando sold 230,000 bottles of its fifth-generation Purple Essence, which features Smilenol, a skin-calming active. Similarly, BM Rice Ferment Toner has surpassed 4 billion RMB ($552 million) in cumulative sales, illustrating the potential of ingredient-focused branding. China’s National Medical Products Administration (NMPA) has played a pivotal role in fostering innovation. Recent regulations encourage the development of new cosmetics ingredients, with a focus on leveraging traditional plant resources. In the first half of 2024, 59 new ingredients were approved for use, with plant-based components accounting for nearly 40%. Notable examples include Botanee’s recent approvals for extracts from Southern Yew and Litchi Grass, showcasing how native biodiversity is being harnessed to create compelling consumer products. A glimpse into the future As domestic brands build stronger R&D capabilities, their products are increasingly seen as credible alternatives to Western luxury offerings. This trend is exemplified by the growing interest of international firms in sourcing from China. At the 2024 In-cosmetics Asia trade show, Bloomage Biotech received accolades for its groundbreaking formulations, underscoring the country’s rising influence in global beauty innovation. However, the journey is far from complete. Despite rapid growth, China still leaves behind the US and Europe in the number of approved raw materials — 8,900 versus 27,000 and 30,000, respectively. This gap presents both a challenge and opportunity for domestic players to expand their portfolios and enhance global competitiveness. From Proya’s peptide-powered Ruby Series to Winona’s plant-based healing formulations, the industry exemplifies how innovation, backed by deep cultural and scientific foundations, can redefine consumer expectations. In an increasingly ingredient-conscious world, China’s domestic beauty sector has laid a solid foundation for enduring success.

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