How did China’s beauty industry fare in H1 2025?

June retail sales decline despite strong promotional performance China’s cosmetics market posted a rare contradiction in June 2025. According to data released by the National Bureau of Statistics, the category’s monthly retail sales dropped 2.3% YoY to 40.7 billion RMB ($5.6 billion), the first decline of the year and placing cosmetics among the few discretionary categories to post negative growth. The downturn surprised many, given that this June coincided with the most successful 618 shopping festival in recent years. The 618 campaign, which ran from May 13 to June 20, recorded 57.5 billion RMB ($7.9 billion) in total beauty-related sales across all platforms. Skincare accounted for 43.2 billion RMB ($5.9 billion), while color cosmetics and fragrance contributed 14.3 billion RMB ($1.97 billion), together reflecting a 63% YoY surge. This growth trajectory contrasted sharply with the weak June retail result, underscoring how earlier and longer promotion windows may be front-loading consumer demand and weakening monthly performance. H1 2025: Slower but steady growth Despite the disappointing June numbers, the overall performance of China’s beauty sector in H1 2025 was positive. Cosmetics retail sales from January to June reached 229.1 billion RMB ($31.3 billion), a 2.9% increase compared to the same period in 2024. Though modest, the figure signals that the category has stabilized following two years of volatility. Over a five-year horizon, the cosmetics sector has clearly entered a slower growth phase. In 2021, first-half retail growth reached 26.6%, fueled by post-Covid 19 recovery. However, the pace has since decelerated year by year, with 2022 seeing a contraction of 2.5%, followed by modest gains of 8.6% in 2023 and just 1% in 2024. The 2.9% growth in 2025 shows the new normal of steady but restrained expansion, in line with broader consumer behavior trends that emphasize rational consumption and price sensitivity. Online channels lead sector growth Short video and livestreaming platforms remain particularly dynamic. On Douyin, beauty GMV in June rose 32.7% YoY to RMB 21.1 billion ($2.89 billion). Skincare contributed 66.4% of this figure, while color cosmetics and fragrance comprised 33.6%. Local brands dominated the rankings: Kans, Proya, and L’Oréal led skincare, while Dirovo, Florasis, and Maogeping topped color cosmetics. Dirovo’s rapid ascent — from outside the top 20 to the number one spot in just a few months — highlights how nimble, content-driven brands can disrupt existing hierarchies in digital retail. Premium brands drive growth on Tmall Tmall and Taobao also saw robust activity in the beauty space. Combined GMV from skincare, body care, and essential oils totaled 648.9 billion RMB ($88.7 billion) in H1 2025, while color cosmetics, fragrances, and beauty tools added 265.9 billion RMB ($36.4 billion), resulting in a combined beauty GMV of 914.8 billion RMB ($125 billion). Average prices rose compared to last year, driven by strong performance from high-end brands. Proya dominated the skincare leaderboard, ranking first each month and leading the second-place brand by 5 billion RMB ($683 million). L’Oréal and Lancôme remained in second and third place, respectively, while premium players such as La Mer, Helena Rubinstein, and Clarins posted year-on-year GMV gains. SK-II also saw its GMV rise by 2.81 billion RMB ($384 million), signaling a mild rebound for Japanese beauty brands. Saint Laurent retained the top color cosmetics spot with 1.1 billion RMB ($150 million) in GMV, up from 969 million RMB ($132 million) a year ago. However, 65% of the top 20 color cosmetics brands on Tmall reported year-on-year GMV declines. While most drops were in the single digits, some premium labels, such as Hermès and Clé de Peau Beauté, saw double-digit decreases. The performance of mass and prestige brands alike revealed the high competitive pressure and evolving consumer preferences in this segment. H2 2025 outlook Despite uneven monthly performance, China’s cosmetics sector remains on track to exceed 450 billion RMB ($61.5 billion) in retail sales this year. The sector continues to benefit from digital innovation, strong domestic brand momentum, and growing interest in premium offerings. However, brands must navigate an increasingly cautious consumer base and a highly competitive e-commerce landscape.

Beauty boom, or bust? 618 soars, but June sales falter

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Beauty boom, or bust? 618 soars, but June sales falter