China Cosmetics Market, August Retail Sales 5.1%↑… Online Growth and Premium Consumption Boost Recovery
The Chinese cosmetics market showed a clear recovery trend last August, supported by the activation of online shopping and the revival of consumer sentiments. Despite the modest growth across the domestic market, cosmetics have recorded above-average performance, raising expectations for industry recovery.
August Cosmetics Sales Recovery… Notable Growth Compared to the First Half
According to data released by the National Bureau of Statistics of China, the retail sales of cosmetics in August 2025 reached a total of 34.9 billion yuan, increasing by 5.1% year on year. This figure surpasses the 4.5% growth recorded in July, clearly breaking away from the sluggish market experienced in the first half.
The cumulative retail sales of cosmetics from January to August amounted to 291.5 billion yuan, up 3.3% year on year. Compared to the first half, where growth was limited to around 2%, the recovery in the latter half is gradually accelerating.
*"The consumption trend, which showed little sign of rebounding until June, turned into a clear improvement in July and August,"* according to local industry analysis.
Cosmetics Industry Recording Above Average Growth Rate
Looking at the overall consumer goods market, China's total retail sales of consumer goods in August reached about 3.9668 trillion yuan, growing by 3.4%. Among these, cosmetics stood out, showing relatively higher growth compared to dining (2.1%), clothing and footwear (3.1%), and automobiles (0.8%).
This suggests that consumer value awareness towards beauty and personal care remains strong. It is particularly analyzed that the premium consumption category has driven cosmetics growth. Examples include jewelry retail, which surged by 16.8% to 30.6 billion yuan in August, also recording an 11.7% increase in cumulative terms.
*"Recently, consumers are investing in something beyond simple consumption, namely 'investing in myself,' and there is a clear trend of turning towards premium products under the perception of cosmetics as a premium consumption item,"* experts observe.
Online Sales Channel Playing a Key Role in Market Growth
The expansion of online distribution is serving as a decisive force in the growth of cosmetics consumption. For the period from January to August 2025, total online retail sales reached 9.9828 trillion yuan, a 9.6% increase, with physical goods sales accounting for 8.964 trillion yuan, an increase of 6.4%.
The sales of physical goods, including cosmetics, have solidified their position as a critical distribution channel by representing 25.0% of the entire consumer goods distribution. Cosmetics, notably showing a 5.1% increase following food products (15.0%) and daily necessities (5.7%), marks its presence as a major consumption group online.
*"The cosmetics market is growing at a faster pace online than offline, which may impact future marketing structure changes,"* agrees industry consensus.
Douyin, Rising as a Central Platform in the Beauty Market
The Chinese device platform 'Douyin' is establishing itself as a leading platform driving the online transition of the beauty industry. According to a recent report by Huayuan Securities, Douyin's total merchandise transaction volume (GMV) for cosmetics reached about 20 billion yuan by August 2025, marking a 19.6% year-on-year and 21.5% month-on-month increase.
The data by brand shows notable progress by local brands. Han Shu topped the list with sales exceeding 700 million yuan, while Pechoin, Marubi, and Maogeping also saw significant rank increases compared to the previous month.
On the other hand, high-end foreign brands like SK-II and L'Oréal fell out of the Top 3 and showed an overall downward trend. It aligns with the analysis that the market structure is being restructured from a global brand focus to a focus on Chinese local brands.
“Consumers are actively searching for products that match their tastes and needs, reflecting a tendency to prioritize practical satisfaction over brand loyalty,” experts analyze.
Steady Growth in Urban and Rural Areas… Need for Diversifying Distribution Channels
Meanwhile, the retail sales of consumer goods in urban areas grew by 3.2% to 3.4387 trillion yuan in August, while rural areas saw a 4.6% increase, reaching 528.1 billion yuan. This regional gap suggests a faster recovery of consumption potential in rural areas.
The retail distribution structure is also diversifying. From January to August, convenience store sales increased by 6.6%, supermarkets by 4.9%, and specialty store sales by 5.2%. The shift away from traditional department store-centric distribution towards more lifestyle-oriented channels is accelerating.
“The distribution channels for cosmetics are now emerging beyond department stores and specialty stores, with organic linkages to digital channels becoming key,” this analysis provides significant insights for future distribution strategy development.
The growth trend of China's cosmetics market suggests possibilities for sustainable development and new changes. YURICO5 recognizes the importance of premium consumption and the online market, positioning itself as a solid partner in the cosmetics industry through systematic and innovative approaches.
