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Competition Looms for L'Oreal: Dazzle Me, Y.O.U, and Chinese Cosmetic Brands Are Positioning Themselves to Take Over L'Oreal's Market Share

China's cosmetics export revenue increased by 12% compared to the previous year, reaching US$2.6 billion, as per custom records for the first half of the year.

Competition intensifies as Dazzle Me, Y.O.U and Chinese beauty brands target L'Oreal's market share
Competition intensifies as Dazzle Me, Y.O.U and Chinese beauty brands target L'Oreal's market share

Competition Looms for L'Oreal: Dazzle Me, Y.O.U, and Chinese Cosmetic Brands Are Positioning Themselves to Take Over L'Oreal's Market Share

China's Mass-Market Beauty Products, Known as C-Beauty, Make a Global Impact

China's mass-market beauty products, or C-Beauty, are making a significant impact on the global beauty industry, particularly in export markets and Southeast Asia. According to a report by a US consultancy, the Southeast Asian C-Beauty market is projected to grow from approximately USD 4.6 billion in 2025 to USD 17.2 billion by 2035, at a compound annual growth rate (CAGR) of approximately 14.1%.

This growth is driven by rising consumer interest in personalized skincare, tech-integrated retail, men's grooming, and products that blend traditional Chinese ingredients with modern formulations. Chinese brands are exporting a new aesthetic and product philosophy that combines Chinese cultural heritage—such as ingredients from Traditional Chinese Medicine—with cutting-edge technology and striking, art-inspired packaging. This strategy has led to rapid increases in international consumer awareness and preference.

In Southeast Asia specifically, C-Beauty is capturing a large and expanding share of the cosmetics and toiletries market—about 40%—driven by skincare, color cosmetics, and personal care segments. The growing middle-class population, combined with demand for affordable, yet culturally relevant and technologically advanced products, makes Southeast Asia a key battleground and growth driver for Chinese beauty brands.

China's domestic market is also robust and growing, with an expected market size of nearly USD 10 billion in 2025, growing to over USD 15 billion by 2030 due to factors like social media influence, rising disposable incomes, and urbanization. This strong domestic market supports enhanced manufacturing capabilities and R&D investment that underpin export competitiveness.

The global positioning of C-Beauty has shifted from being perceived as a follower (behind K-Beauty and J-Beauty) to becoming a trendsetter and cultural influencer. Chinese brands are now surpassing their Korean and Japanese counterparts in international search interest for facial care products.

The data showed the top export destinations for China's cosmetics, with the US, UK, Indonesia, the Netherlands, and Japan leading the way. Overseas sales of Chinese beauty products on AliExpress doubled in the past year, and Europe, Mexico, Brazil, and Japan emerged as top-performing markets for these products on the platform.

However, it's worth noting that the expansion of affordable Chinese skincare and color cosmetics in Southeast Asia is not expected to significantly impact the premium segment. A McKinsey survey in June found that 63% of consumers do not believe premium brands are superior to mass brands, which could help upstarts challenge the industry's biggest names.

Despite the growth and success of C-Beauty, concerns have been expressed about consumers trading down to cheaper beauty products. The US consultancy has reported that 24% of consumers have done so since June last year. In a recent report, 80% of eyeshadow items tested by a Hong Kong consumer watchdog were found to contain heavy metals.

In summary, C-Beauty's rise positions Chinese mass-market beauty products as a transformative force in the global beauty industry, reshaping consumer preferences and competitive dynamics, especially in Southeast Asia and export markets worldwide.

|Aspect|Details| |-|-| |Market Size (SEA C-Beauty, 2025E)|USD 4.6 billion, growing to USD 17.2 billion by 2035 (CAGR 14.1%)[1]| |China Domestic Market Size 2025|Approx. USD 9.95 billion, growing to USD 15.65 billion by 2030[3]| |Key Growth Drivers|Personalized skincare, tech integration, men's grooming, TCM ingredients, social media influence[1][2][3]| |Global Positioning|From manufacturer to trendsetter; blending cultural heritage with modern aesthetics; surpassing J-Beauty and K-Beauty in international search interest[2]| |Southeast Asia Market Share|Captures ~40% of cosmetics and toiletries, 30% personal care market; niche in luxury and functional products expanding[1]| |Export Destinations|US, UK, Indonesia, the Netherlands, and Japan [No additional data provided by Alibaba Group Holding regarding the doubling of overseas sales of Chinese beauty products on AliExpress]| |Top-Performing Markets on AliExpress|Europe, Mexico, Brazil, and Japan [80% of eyeshadow items tested by Hong Kong consumer watchdog contain heavy metals]| |Impact on Premium Segment|Expected to be minimal [McKinsey survey in June found that 63% of consumers do not believe premium brands are superior to mass brands]|

[1] Source: McKinsey & Company [2] Source: Jing Daily [3] Source: KPMG China

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