China Beauty Market Targets 6 Percent Annual Expansion Through 2028

China’s beauty market will expand at a 6 percent compound annual growth rate between 2024 and 2028, according to projections from consultancy McKinsey. The forecast follows a 3 percent expansion recorded in 2023 across the country’s cosmetics and skincare sectors.

A 2025 survey showed that 75 percent of beauty executives are pushing to increase sales despite softer volume growth caused by inflation and cautious household spending. Retailers face rising customer acquisition costs across domestic e-commerce channels alongside extended product lifecycles.

Squeezed Margins and Price Pressures

Downward pricing pressures intensified over the past year across Chinese retail platforms. Consumers increasingly hunt for value, forcing brands to adjust promotional calendars and discount structures to defend shelf space.

Foreign and domestic beauty brands are rethinking their operating models in response. Companies such as Changsha-based S’Young International are expanding integrated operations hubs to manage distribution and localization more efficiently.

Shift Toward Capability Hubs

International brands previously treated mainland China primarily as a volume driver for global sales. Today, rising domestic competition and fragmented digital channels require dedicated local research, formulation and supply chains within the market itself.

The critical metric for brand managers in the coming quarters is whether average selling prices stabilize across major retail platforms before margins erode further.