China focus: Latest developments in China’s booming beauty market

China on map of Asia

We round up the recent developments in the Chinese beauty market, including Perfect Diary’s recovery, Down Under’s China-exclusive tea tree oil brand, how The Ordinary is driving Estée Lauder’s growth, and more.

Perfect Diary recovery driven by ‘scientific innovations’ – Yatsen CEO

Once China’s fastest-growing colour cosmetics brand, Perfect Diary saw a significant decline as the competition in the market intensified, and faced criticism by consumers for prioritising investments in marketing over product quality.

Since then, brand owner Yatsen Holdings has steadily increased investments into R&D over the years.

This strategic transformation led to the development of its Biolip Essence Lipstick, a product that helped to reinvigorate interest in the brand and highlight its R&D capabilities.

Down Under launches China-exclusive tea tree oil brand to capture ‘enormous’ opportunity

Down Under Enterprises has developed Eelemani, a consumer-facing tea tree oil brand exclusively for the Chinese market, with the aim to strengthen awareness of the famous Australian oil.

The company believes the time was ripe to launch Eelemani as there has been a greater appreciation for high-quality essential oils among Chinese consumers.

Dee-Ann Prather, founder and CEO, said that the company believes the opportunity in China was “enormous”.

Sensory beauty: Huge room for innovation as consumers prioritise self-care

Cosmetics companies targeting Asian consumers should look further into product experiences that stimulate all senses, an area with huge room for innovation.

According to Ulysse Lardy, R&D manager of Chinese cosmetics company Carslan Laboratory in Italy, sensory aspects of a product are continuing to shape innovation in Asia, especially as consumers increasingly prioritise wellness and self-care.

“Asian consumers are looking for an all-sensorial experience, such as a playful tactile texture. Cosmetics don’t just need to be functional, but they are also perceived as a game.”

The Ordinary is Estée Lauder’s best bet for China, but hurdles remain

Beauty major Estée Lauder is counting on The Ordinary to drive its growth in China but must navigate significant hurdles to win back skin care market.

The company recently announced the China launch of The Ordinary, a brand it gained through its acquisition of DECIEM, which was completed in June 2024.

The Ordinary is well-positioned to meet the rising demand for efficacious and high-quality skin care in China.

Local heroes: PCHi Fountain Awards 2025 features strength of China industry

A signature event of Personal Care and Homecare Ingredients (PCHi), the Fountain Awards announced the winners on February 19 in Guangzhou, China.

The awards aim to honour achievements in product development and technology innovation, as well as recognise a wide range of ingredients, including anti-ageing, microbiome, skin barrier repair, and sustainability.

This year, out of the 28 ingredient winners, 13 were awarded to products developed by Chinese companies.