On January 15th, the General Office of the State Council of the People’s Republic of China issued opinions on developing the silver-haired economy to enhance the well-being of the elderly. In Article 17 of these opinions, a key focus is placed on developing the anti-aging industry. Simultaneously, in the cosmetics industry, efforts are to be made to advance research and development of cosmetic ingredients formulation, and production process design. With the accelerated aging of the population in China, the anti-aging market, particularly in the sector of anti-aging cosmetics, is rapidly expanding. Additionally, a swift growth is observed in the registration of new cosmetic ingredients in the Chinese market.
The global anti-aging cosmetics market is expected to surpass $ 70 billion by 2030
According to data released by iResearch, among consumers across various age groups, those aged 18-35 are more focused on anti-aging, with the percentage breakdown being 23.2% for the 18-25 age group and 53.2% for the 25-35 age group. The combined percentage of these two age groups reaches 76.2%.
As per a report by Facts and Factors, the global anti-aging market was approximately 200.12 billion USD in 2022, and it is projected to grow to around 422.81 billion USD by 2030, with a compound annual growth rate of approximately 8.61%.
Anti-aging products include cosmetics, botulinum toxin injections, laser treatments, oral medications, and more. Among them, cosmetics represent one of the most significant segments in the anti-aging market. According to Straits Research, the global market size for anti-aging cosmetic products was 42.10 billion USD in 2021, and it is expected to reach 71.73 billion USD by 2030, with a compound annual growth rate of 6.1% from 2022 to 2030. The anti-aging cosmetic market accounts for 17% of the overall anti-aging market.
At the China International Import Expo (CIIE) in early November last year, several beauty industry giants unveiled their first-ever anti-aging products. At the Amorepacific showcase, the spotlight was on the debut of the Ultimate S Cream. Amorepacific staff explained that the Ultimate S Cream is a representative work of Sulwhasoo’s ginseng epigenetics research, containing the essence of the GINSENG BERRY SR™, capable of rejuvenating youthful skin texture and promoting a translucent and lifted complexion.
Shiseido, on the other hand, showcased its breakthrough anti-aging patent ingredient, the new “CoreXymide,” at this year’s CIIE. It effectively inhibits the damaging factors that lead to the aging of the basal membrane, thereby repairing and protecting the basal membrane, promoting the generation of epidermal stem cells, and providing multi-dimensional anti-aging effects. In addition, Shiseido has developed the unique Retinol TripleLock Technology, a triple-locked freshness, efficacy, and texture of retinol, covering production, packaging, and formulation technologies.
Participating in the CIIE for the fifth time, Estée Lauder In January 2024, Estée Lauder will unveil its newest product innovation, the new Re-Nutriv Ultimate Diamond Transformative Brilliance Soft Crème, with SIRTIVITY-LP™ which reveals visible age reversal starting in just 14 days.
Moreover, as a leading force in the global cosmetics industry, L’Oréal has established the benchmark anti-aging active ingredient in its portfolio with Pro-Xylane, derived from the beech tree. This compound has become a symbol of anti-aging excellence for the group. The recent CIIE also showcased its La Roche-Posay Revitalift Repairing Series, representing the global debut of this year’s anti-aging collection.
When it comes to anti-aging cosmetics, global beauty giants are continuously conducting research, and the key focus lies in the ingredients. Whether it’s Amorepacific’s GINSENG BERRY SR™, Shiseido’s new CoreXymide and pure retinol, Estée Lauder’s SIRTIVITY-LP™, or L’Oréal’s Pro-Xylane extracted from beech trees, these new ingredients stand out as the crucial factors driving product upgrades in the cosmetics industry.
The number of registered cosmetic ingredients in China soared 64% to reach 69 in 2023
In terms of ingredient registration, the cosmetics industry in China has experienced remarkable growth over the past three years.
According to the information from the National Medical Products Administration (NMPA) on the registration of new cosmetic ingredients, only four new cosmetic ingredient registrations were approved from 2009 to 2019 over ten years. The official implementation of the Provisions for Management of New Cosmetic Ingredient Registration and Notification Dossiers took effect on May 1, 2021. However, due to the recent implementation of the new filing regulations, only six ingredients were registered in 2021. Over the following two years, the registration of cosmetic ingredients in China saw a rapid increase.
In 2022, a total of 42 new cosmetic ingredients were registered, involving 38 components, marking a sevenfold increase compared to the number of registrations in 2021. In 2023, there were 69 new cosmetic ingredients registered, involving 64 components, representing a significant 64% year-on-year increase.
Among the 69 registered ingredients last year, not only ingredient suppliers but also several brand companies, including Betaine, Peléya, Huaxi Biotechnology, Wanmei Corporation, Shuiyang Biotechnology, Huan Ya Group, and others, have begun conducting research and development on new ingredients. This includes domestic beauty and cosmetics enterprises that registered their first new ingredients. Additionally, aside from Shiseido Corporation and Amorepacific Corporation, which are foreign companies, the rest are domestic cosmetics brand-related enterprises. This indicates that domestic brands are intensifying their efforts in ingredient competition and gradually reducing dependence on foreign sources.
In 2022, only six domestic beauty and cosmetic brand-related enterprises filed for ingredient registration, while in 2023, this number doubled to 12. This suggests that domestic beauty and cosmetic enterprises have achieved notable results in ingredient research and development.
Analyzing the source of ingredients, among the registered cosmetic ingredients last year, chemical ingredients accounted for the largest proportion with 31 registrations, approximately 45%. botanical ingredients accounted for 10 registrations, or 15%, while biotechnological ingredients accounted for 12 registrations, or 17%. In 2022, only three botanical ingredients were registered, and the number of biotechnological ingredient registrations was nine. Looking at the data, botanical ingredients and biotechnological ingredients saw the most significant increase. botanical ingredients and biotechnological ingredients, such as synthetic biology, are two aspects that have garnered the most attention in the global cosmetics ingredient market in recent years.
In the realm of synthetic biology, China is at the forefront of the cosmetics ingredients trend.
On October 13th of last year, at the 8th China Cosmetics Trends Conference (2023) jointly organized by CHAILEEDO, Dr. Fusheng Wei, a scientist from Trautec, the leading company in the recombinant collagen industry, delivered a keynote speech on the development of synthetic biology and cosmetic ingredient development. He provided profound insights into the impact of synthetic biology on the cosmetics industry.
Dr. Wei shared several representative cosmetic ingredients produced through biosynthetic methods, including squalene, peptides, mupirocin, hyaluronic acid, and collagen. China’s advancements in collagen, peptides, and hyaluronic acid are globally leading, serving as a crucial foundation for the self-sufficiency of cosmetic ingredients in the country.
China stands out as the first country globally to achieve large-scale production of recombinant collagen. The country holds a leading position in the industry. Skincare products featuring recombinant collagen have witnessed the fastest growth among functional skincare products in China, reaching a scale of 30.8 billion yuan by 2021. With advantages such as repair, anti-aging, and whitening, collagen is expected to reach 64.5 billion yuan by 2027, surpassing hyaluronic acid. Due to the robust demand in the recombinant collagen market, Trautec has secured investments from Shiseido and LVMH-backed fund L Catterton. Simultaneously, Trautec is gearing up for an initial public offering (IPO).
Regarding another highly sought-after anti-aging ingredient, peptides, data from Frost & Sullivan indicates that the global market for peptide cosmetics ingredients is expected to reach $1.45 billion by 2025 and $1.97 billion by 2030.
The Chinese market plays an indispensable role, projected to reach ¥3.24 billion by 2030. By 2022, it is estimated that the Chinese market for peptide cosmetics ingredients will account for 22.5% of the global market, highlighting China’s leading position in this industry. The National Medical Products Administration’s “Catalog of Used Cosmetic Ingredients (2021 Edition)” includes 79 types of peptides.
In addition, materials such as mupirocin and squalene are also experiencing rapid development in China.
After the release of new ingredient registration regulations by the National Medical Products Administration, there has been a significant surge in the registration of cosmetic ingredients in China. The registration of these ingredients reflects the crucial aspect of the State Council’s push for the development, formulation, and production process design of cosmetic ingredients. It also signifies a key step in China’s cosmetics market to reduce its reliance on international sources for ingredients.
How to build a cosmetic brand with Chinese features?
According to data from the upcoming 2023 China Cosmetics Yearbook by CHAILEEDO Intelligence, in 2023, the sales of Chinese beauty products increased by 21.2% year-on-year, reaching a market share of 50.4%, surpassing international cosmetic brands for the first time.
While Chinese beauty brands have successfully outperformed international counterparts in the domestic market, establishing a presence in the international market requires the creation of cosmetic brands with distinctive Chinese characteristics. A key focus in achieving this lies in the development of unique Chinese plant and herbal ingredients.
In recent years, the development of botanical ingredients has been a significant emphasis for Chinese brands in the domestic market. These brands are actively seeking botanical ingredients that represent Chinese characteristics, aiming to differentiate themselves in competition with international brands.
During the 8th China Cosmetics Trends Conference (2023) hosted by CHAILEEDO in October this year, Wang Feifei, Vice President of BTN, emphasized that one of the most crucial factors setting BTN apart from other brands is the use of distinctive botanical ingredients from Yunnan, China.
BTN incorporates distinctive botanical ingredients such as Prinsepia utilis Royle, Portulaca oleracea, and Yunnan Camellia into their products. Prinsepia utilis Royle is sourced from the Shangri-La snow mountain, situated at an altitude of approximately 3,200 meters, known for its potent vitality and reparative properties. Portulaca oleracea, an annual herbaceous plant, undergoes extraction using patented technology, effectively soothing skin irritation, improving skin tolerance, and reducing sensitivity due to its anti-inflammatory and anti-allergic characteristics. Yunnan Camellia, thriving at an altitude of around 2,800 meters, has undergone five years of research in BTN’s laboratory, optimizing the beauty effects of its flowers and seeds. The petal extract imparts translucency and radiance to the skin, while the seed extract provides moisture and translucency.
Furthermore, during her presentation at the conference, Lin Yuting, the co-founder of GrainRain, a prominent domestic brand specializing in whitening products featuring Chinese licorice, emphasized the distinctive Chinese characteristics of Glycyrrhiza glabra. Lin Yuting mentioned that GrainRain’s ingredient catalog currently encompasses 119 botanical ingredients, with 12 exclusive to China. These include Glycyrrhiza uralensis, Chinese Lingzhi, Chinese ginseng, peony, osmanthus, Rehmannia chinensis, Houttuynia cordata, soapberry, Salvia miltiorrhiza, Lycium barbarum, mulberry, Guangxi sand mandarin. These unique Chinese botanical ingredients are in high demand for exploration and are better suited for the preferences of Chinese consumers.
The data reveals that the annual sales of globally marketed cosmetics containing traditional Chinese herbal ingredients exceed 16 billion USD, experiencing a consistent growth rate of 10% to 20% each year.
Chinese brands are actively investing in the field of herbal skincare. Leading brands like INOHERB position themselves as “Experts in Herbal Skincare,” Pechoin emphasizes “New Herbal Technology,” and Herborist positions itself as “Experts in Modern Herbal Personal Care.” These brands stand as representative leaders in this field. In addition, major beauty conglomerates are strategically venturing into herbal skincare.
In 2022, BASF introduced a new generation of active ingredients, Phytocine™, inspired by traditional Chinese herbal medicine. This innovation combines modern skin biotechnology with herbs grown in the Yunnan province of the Pan-Himalayan region, showcasing an achievement in collaboration with China. This highlights the growing international interest in Chinese herbal cosmetic ingredients.
In summary, whether in the international market or the Chinese cosmetics industry, both established and emerging brands are focusing on botanical ingredients and traditional Chinese herbs in their subsequent product development. Traditional Chinese herbs have become a critical factor in China’s journey towards distinctive cosmetics, serving as a strategic breakthrough for Chinese brands aiming to establish a global presence.
