China's Cosmetics Market Hits CN¥ 235 Billion as Value Shoppers Reshape Price Landscape
By Jessie Wang
6 min read
Introduction
Market Overview
Key Finding
China's online makeup and skincare market reached CN¥ 235.23 billion (+10.1% YoY) and 2.56 billion units (+5.5% YoY) in H1 2025. Value-conscious consumers reshaped the price landscape as mid-to-low-priced products captured market share through superior cost-effectiveness.
The "appearance economy" continues to power spending across cosmetics categories. However, consumption downgrading has fundamentally altered where consumers allocate their beauty budgets. Shoppers now favor affordable yet effective products over premium alternatives, balancing quality aspirations with budget constraints.
This shift signals a structural change in how Chinese consumers approach beauty purchases. Brands that deliver quality at accessible price points stand to gain, while premium players face mounting pressure to justify higher prices.
Market Dynamics
Three key dynamics defined the H1 2025 cosmetics market:
Consumption downgrading accelerates. Price-sensitive consumers favor mid-to-low-priced products, prioritizing cost-effectiveness over brand prestige. This trend reflects broader economic caution among Chinese shoppers.
Skincare market restructures. Products priced below CN¥ 100 gained +3.9 percentage points in market share, while segments above CN¥ 300 contracted. Budget skincare now captures a significantly larger slice of consumer spending.
Makeup market polarizes. The low-price segment share rose +0.5 percentage points, while CN¥ 100-500 segments decreased. This reveals bifurcated consumer preferences: shoppers either trade down to entry-level products or maintain premium purchases, squeezing the middle market.
Monthly Sales Analysis
Sales Trends
Market peaks at CN¥ 50.49 billion in May, driven by promotional events and seasonal skincare demand
Seasonal Patterns
The monthly sales trajectory reveals distinct patterns that brands can leverage for strategic planning.
January-February stability. The first two months delivered consistent performance at CN¥ 34.70 billion and CN¥ 35.48 billion respectively. Chinese New Year festivities supported gift-giving purchases despite the traditional retail slowdown.
March acceleration. Sales jumped to CN¥ 40.78 billion as spring skincare routines kicked in. Consumers pivoted from winter hydration to brightening and anti-allergy products.
April dip. The CN¥ 32.94 billion figure marked the half's lowest point. Shoppers held back ahead of major May promotions, a pattern consistent with previous years.
May peak. The 618 shopping festival preview and seasonal suncare needs drove sales to CN¥ 50.49 billion. This represented a +53.3% jump from April, demonstrating the power of promotional events.
June normalization. Post-promotion sales settled at CN¥ 40.83 billion as consumers digested May purchases.
Price Landscape Transformation
Makeup Market Price Shifts
Low-price makeup segments gain +0.46 percentage points as mid-range contracts
Makeup Polarization Analysis
The makeup market displays a distinctive "barbell" pattern in H1 2025. Entry-level products under CN¥ 100 gained +0.46 percentage points in market share, representing the largest shift across all price tiers.
The mid-market bore the brunt of this migration. Products priced at CN¥ 100-300 lost -0.43 percentage points, while the CN¥ 300-500 segment contracted by -0.15 percentage points. These declines reflect consumers' unwillingness to pay mid-tier premiums for products they can now find at lower price points.
Premium and luxury segments held steady with marginal gains. Products above CN¥ 500 posted small positive shifts ranging from +0.03 to +0.05 percentage points. This stability suggests that luxury makeup buyers remain committed to premium purchases, viewing them as investments rather than discretionary spending.
The implications for brands are clear: compete aggressively at entry-level price points or establish compelling differentiation at premium tiers. The middle ground offers diminishing returns.
Skincare Market Price Shifts
Skincare under CN¥ 100 surges +3.9 percentage points as premium segments contract
Skincare Value Revolution
Skincare's price restructuring dwarfs the changes seen in makeup. The under-CN¥ 100 segment gained a remarkable +3.9 percentage points in market share---nearly ten times the makeup category's entry-level gain.
Every premium tier contracted without exception. The CN¥ 100-300 segment lost -2.5 percentage points, absorbing the largest decline. Higher tiers followed suit: CN¥ 300-500 dropped -0.8 percentage points, CN¥ 500-1000 fell -0.6 percentage points, and even ultra-premium segments above CN¥ 1000 posted marginal losses.
This uniform contraction across premium tiers marks a decisive consumer verdict. Chinese shoppers have concluded that affordable skincare delivers sufficient efficacy for their needs. The rise of domestic brands offering quality formulations at accessible prices has accelerated this shift.
The transformation carries profound implications. Premium international brands must demonstrate measurable efficacy advantages to justify their price premiums. Meanwhile, budget brands that combine quality ingredients with value pricing have captured a commanding position in consumer preference.
Strategic Implications
Market Outlook
What This Means for Brands
The H1 2025 data points to a cosmetics market in transition. Brands operating across China's beauty landscape should consider several strategic priorities.
Value positioning is essential. The +3.9 percentage point shift toward budget skincare represents a structural change, not a temporary fluctuation. Brands need compelling value propositions at accessible price points to capture this growing segment.
Premium differentiation must intensify. Luxury brands cannot rely on heritage or marketing alone. They must deliver demonstrable product advantages that justify premium pricing to increasingly discerning consumers.
Mid-market requires reinvention. The squeezed middle presents the greatest challenge. Brands in the CN¥ 100-500 range face pressure from both directions and need to make decisive moves---either upward toward premium positioning or downward toward value leadership.
Promotional timing matters. The May sales peak demonstrates Chinese consumers' responsiveness to well-timed promotions. Strategic alignment with major shopping festivals can significantly amplify results.
Download Full Report
This article highlights key findings from Moojing Market Intelligence's comprehensive H1 2025 Makeup & Skincare Market Analysis. The full report provides detailed insights into brand performance, channel dynamics, category trends, and consumer behavior patterns.
About the Data
This analysis draws on Moojing Market Intelligence data covering H1 2025 (January-June 2025). Moojing tracks 400,000+ brands across 30+ e-commerce platforms including Tmall (天猫), JD.com (京东), and Douyin (抖音), representing 58-65% of China's online retail GMV[1]. Market size figures reflect online retail sales across major platforms. Price tier analysis examines year-on-year shifts in market share distribution.
[1] National Bureau of Statistics of China, "Statistical Communiqué of the People's Republic of China on the 2024 National Economic and Social Development," February 2025.
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