A Shifting Landscape in the Global Beauty Market
For years, South Korean cosmetics have reigned supreme, driven by the global obsession with K-pop idols, glass skin, and intricate multi-step routines. The statistics back this up. South Korea remains the world’s second-largest cosmetics exporter behind France, with exports reaching a record $10.3 billion in the first 11 months of 2025. Yet, a quiet transformation is taking place to the north. China, long considered a consumer market rather than an exporter, is rapidly evolving into a formidable competitor. Chinese cosmetics exports hit $3.99 billion in the same period, marking an 8.7 percent increase. While the gap remains significant, the trajectory suggests a changing of the guard is on the horizon.
This shift is not merely about volume. It represents a fundamental change in consumer preferences and industrial strategy. The Chinese market is the world’s second-largest for beauty and personal care, projected to reach $78 billion by 2025. This massive domestic base provides a structural advantage that few other markets can match, according to Chloe Zhu, a consultant at Euromonitor International. As domestic brands capture more share at home—imports fell by 3.4 percent—they are turning their gaze outward, ready to challenge Korean and Western giants on their own turf.
The Rise of Guochao and Domestic Dominance
The foundation of China’s global ambition lies in a cultural phenomenon known as “guochao.” This wave of patriotic consumption emerged in the late 2010s, encouraging consumers to gravitate toward products rooted in domestic heritage and aesthetics. The strategy has worked. By 2024, local beauty companies accounted for 55.7 percent of the domestic market share. This shift came at the expense of foreign brands, particularly South Korean companies. Following the 2016 deployment of a U.S. missile defense system, an unofficial ban on Korean cultural exports and products forced Korean brands to retreat. China’s share of Korean exports plummeted from 69 percent to 23 percent between 2022 and 2025.
However, the success of Chinese brands is no longer just about patriotic buying or geopolitical happenstance. Brands like Pechoin, Chando, and Herborist have successfully gained market share by understanding local preferences. Pechoin, for instance, has surpassed RMB 100 million in monthly sales on Douyin, driven by its use of traditional Chinese medicinal ingredients. This focus on natural and herbal ingredients resonates with younger shoppers who value wellness and cultural identity. As domestic competition intensifies and consumption slows at home, Chinese companies are entering a second phase: rapid expansion overseas.
Strategic Aggressiveness and Quality Evolution
Chinese firms are deploying a playbook familiar to observers of other Chinese industries. Companies keep prices competitive while rapidly narrowing gaps in product quality and functionality. This approach is moving Chinese brands beyond the low-end segments they once occupied. Growing consumer trust is allowing them to penetrate premium markets, challenging the perception that they compete only on price.
A prime example of this aggressive strategy is the Ushopal Group’s acquisition of Payot, a French skincare brand with over a century of history. Similarly, Mao Geping, a high-end brand incorporating traditional aesthetics, is expanding internationally. In a symbolic move, Flower Knows, known for its princess-style packaging, opened a pop-up store in Seoul. These moves signal a desire to be taken seriously as global players rather than just budget alternatives. The scale of investment is daunting for competitors. An anonymous official at a leading Korean cosmetics company noted that only a handful of brands can compete with the speed and scale at which local Chinese brands are investing today.
Divergent Paths: Skincare Versus Color Cosmetics
Despite the rise of Chinese brands, the two countries are not competing head-to-head in every category. Skincare continues to dominate Korea’s exports, driven by a reputation for efficacy and long-term safety. Chinese firms have found their initial success in color cosmetics like eyeshadow and false eyelashes. These categories demand less brand loyalty and appeal to trend-driven consumers who are willing to switch brands frequently.
I could try new styles at relatively low prices by buying Chinese products like eyeshadow and false eyelashes through platforms such as Temu and AliExpress, but I remain hesitant to try new skincare products from overseas as I am uncertain about their long-term effects.
That sentiment comes from Hong Ju-mi, a theatrical makeup artist based in Seoul. It highlights a critical hurdle for Chinese brands. While they have gained market share with makeup brands like Perfect Diary and Florasis, they struggle to attract comparable traffic in premium skincare. Breaking into these segments requires sustained consumer trust, something Vincentia Vania Natasha, a sales and marketing professional in the Korean beauty industry, says is the key differentiator. She argues that Korean and Chinese cosmetics are now in a similar price range, but Korean skincare benefits from 15 years of accumulated trust in the global market.
The Cultural Soft Power Battle
Korean beauty has long benefited from the “halo effect” of K-pop and K-dramas. The global popularity of these cultural exports has created a powerful marketing engine that reinforces brand recognition abroad. Chinese brands are attempting to replicate this success. They are leveraging platforms like Douyin and TikTok to amplify dramatic, doll-like makeup looks grounded in distinctly Chinese aesthetics. However, analysts suggest they still lack a “cultural carrier” with the same global reach as the Korean Wave.
Xu Tianchen, a senior economist at the Economist Intelligence Unit, points to China’s micro dramas as a potential solution. These fast-paced series reached an audience of 662 million in China in 2024 and are gaining traction internationally. If actresses in these popular dramas wear Chinese makeup, it could provide a significant commercial boost to domestic brands. In the meantime, both nations are expanding into Western markets. Korean exports to the United States rose 53 percent year-on-year in the first quarter of 2025. Meanwhile, Chinese giants like Proya and S’Young are looking outward, acquiring premium Western brands to establish a foothold in developed markets.
The Digital and Innovation Advantage
One area where Chinese brands possess a distinct advantage is the digital ecosystem. A remarkable 87 percent of total hair and skincare sales in China are made online, compared to 41 percent in the United States. This digital-first environment has forced Chinese brands to master social commerce, livestreaming, and influencer marketing. Brands use interactive product demonstrations and real-time Q&A during live sessions to deepen engagement. This expertise translates well as they expand into Southeast Asia, where e-commerce penetration is also high.
Furthermore, Chinese companies are investing heavily in research and development. The government is implementing reforms to streamline market access and encourage innovation. Brands are focusing on four key consumer demands: sun protection, whitening, skin rejuvenation, and anti-aging. Artificial intelligence is also reshaping the industry, powering hyper-personalized recommendations and virtual try-ons. As consumers become more ingredient-literate, Chinese brands are responding with science-backed formulations, such as DR PLANT’s focus on high-altitude plant extracts, to prove their worth beyond hype.
Key Points
- South Korea remains the world’s second-largest cosmetics exporter with $10.3 billion in exports during the first 11 months of 2025.
- China’s cosmetics exports grew by 8.7 percent in the same period, reaching $3.99 billion, while domestic imports fell by 3.4 percent.
- The “guochao” movement has helped Chinese brands capture 55.7 percent of their domestic market share.
- Chinese firms currently lead in color cosmetics, while Korean brands dominate the skincare sector.
- E-commerce drives 87 percent of hair and skincare sales in China, compared to 41 percent in the US.
- Korean beauty exports to the US surged by 53 percent in the first quarter of 2025.
