Cosmetic Testing Companies is in a Trend Adding 36
- Chaileedo Press
- Jul 19, 2023
- 7 min read
Up to now, there are 395 cosmetics testing companies in China.
A few days ago, Shanghai Yuyuan Tourism Mall (Group) Co., Ltd (hereinafter referred to as: Yuyuan Inc.) announced that its cosmetic testing center was certificated by China National Accreditation Service for Conformity Assessment. Some senior industry professionals commented on this, "Cosmetic testing centers are almost a mus-have for cosmetic companies."
In fact, CHAILEEDO noted that, up to now, the number of cosmetics testing companies increased to 36, while brands, OEM/ODM, raw materials companies also opened their own testing centers. The cosmetics testing services has indeed become the must-have for beauty companies.
The cosmetics testing companies increased 36
Following the acquisition of international beauty brands AHAVA, WEI, and incubation of their own brand YoganDerma, listed companies Yuyuan Inc. began to get involved in the field of cosmetics testing.
On July 17, Yuyuan Inc. formally announced that the testing center, Xingzhiyumei (Shanghai) Biotechnology Limited Company, formed by Fosun Cosmetics Innovation Center under Yuyuan Inc. has obtained a laboratory certificate issued by China National Accreditation Service for Conformity Assessment (hereinafter referred to as "CNAS"). It is understood that Fosun Cosmetics Innovation Center has been involved in a number of experimental areas, including physical and chemical testing, formulation, stability, human efficacy evaluation, instrumental analysis, etc. The scope of testing capacity involves 7 major areas of the 11 test standards in the 16 projects.
This is just a microcosm of the cosmetic companies have been involved in the field of testing.
According to the National Medical Products Administration published the information of cosmetics testing companies, in 2020, due to the introduction of new regulations, the demand of cosmetic testing exploded. The cosmetics testing companies also ushered in a growth peak, since then the growth rate of cosmetics testing companies gradually slowed down. And as of July this year, there are 36 new cosmetic testing companies which is close to half of the number of new organizations in the year 2020. Cosmetic testing organizations have ushered in a small peak of growth. As of now, there are 395 cosmetic testing companies.
On the publicly available information, according to the company's background, this year's new cosmetic testing organizations mainly include institutions, third-party testing organizations, research institutes and cosmetic companies associated companies.
For example, Wuhan Customs Technology Center, Wenzhou Market Supervision And Administration Bureau, Changshu Product Quality Supervision and Inspection Institute, Qingdao Customs Technology Center and other institutions have gained cosmetics-related testing qualifications. Bureau Veritas International Inspection Group, Standard Testing Group, Tongbiao Standard Technical Services Co., Ltd, RID testingcertification(RID) and other large testing companies, branches or subsidiaries have also added cosmetic testing qualifications. In short, a number of large companies engaged in food, agricultural products, environmental testing services are expanding cosmetics testing services.
It is worth mentioning that this year, cosmetics-related companies such as raw materials, OEM, brands and research institutes have also added cosmetics testing business through subsidiaries or affiliates.
For example, Huiwen Testing (Shanghai) Co., Ltd. is a subsidiary of Shanghai Huiwen Biotechnology Co., Ltd. which is an enterprise engaged in the research of biopolysaccharides, biological compounds, biological proteins and other biotechnology products and intermediates, and owns cosmetic raw materials such as Tremellam and taurine.
Cosmax (Shanghai) Testing Technology Co., Ltd. is a subsidiary of Cosmax (China) Cosmetics Co., Ltd., which is the head OEM company in the cosmetic industry. Guangdong Jingke Testing Technology Research Co., Ltd. is a subsidiary of GD LCHEAR Cosmetics Co., Ltd. which is a well-established makeup OEM in the industry. Zhuoyan Testing Company Ltd. is a grand-company of Hunan S’Young Investment Co., Ltd. and an affiliate of S’Young.
As for the specific test items to obtain accreditation, in addition to heavy metals, microorganisms, pH value and phenylenediamine, salicylic acid and other components, there are 15 companies have obtained the human body test, cosmetic efficacy of the relevant test qualifications, including the human skin patch test, the human trial test of the safety evaluation, as well as cosmetic sunscreen index (SPF value) determination, sunscreen cosmetic waterproofing performance determination, as well as the blemish whitening effect of the test, the effectiveness of the test to prevent the hair loss, and so on.
Empowering R&D and Customers
As we all know, with the promulgation and implementation of Standards for Cosmetic Efficacy Claim Evaluation, the market of cosmetic testing has ushered in an explosive period and the cosmetic testing companies have shown a spurt of development. However, starting from 2022, the cosmetics testing business has cooled down due to weak consumption, reduced demand for new product testing, and falling testing prices. For example, in June 2022, due to losses in the testing business, Zanyu Technology, a leading surfactant company, sold 55% of its testing company at a 70% discount and divested its testing segment business from their business.
So why is there still significant growth in cosmetic testing cosmetics this year that is highly competitive in beauty industry ?
Guangdong Shangpinhui Cosmetics Co., Ltd. makeup R&D director Lin Lijun said that the growth in cosmetics testing companies in this year is mainly in two aspects. Based on the former services such food, large testing companies expand the cosmetics testing service, which reflects the fierce competitiveness in this sector. On the other hand, with the cosmetic industry regulation into the deep water, the regulation of the more and more detailed, the cosmetic industry chain on the raw materials , factories and brands have begun to increase self-examination and self-correction through the way of self-built testing organizations.
Bode Chuangyan Biotechnology (Guangdong) Limited general manager Wang Jing said: "The testing industry is getting more and more competitive. Some companies think it is profitable. Some companies is for their better services."
A industry insiders said a well-known OEM in Guangzhou has opened two testing companies. "Perhaps, they are for their own products. It can save time." The insider said.
Talking about COSMAX self-built cosmetic testing company, Shen Yingjie, assistant general manager of COSMAX (China) Cosmetics Co Ltd, also said that it is not a main business for COSMAX, but is done as a help for the ODM. "Our starting point is to serve the company internally, and then to provide value-added services to our customers. After the new regulations, there is no efficacy test report, filing, publicity will be affected. If the testing can not keep up, it is a bottleneck for brands. In that case, we set up a specialized testing company." He further said.
Some industry insiders also said that the role of cosmetic testing does not only include product filing, efficacy publicity, etc., but also for raw materials and product development services. Some raw material companies, foundries, brand testing centers will have such a function.
NOA Testing sales director Cheng Meimei told CHAILEEDO that t a lot of factories can do their own testing services this year. Many customers have also established their own laboratories, mainly for research. Shen Yingjie also said that the newly established testing companies can also serve R&D, such as helping with efficacy corroboration, formula effect verification, and research on skin conduction mechanisms, etc.
In January this year, Symrise China Innovation Laboratory was officially opened in Shanghai, which includes clinical efficacy evaluation laboratory, microbiology laboratory, formulation and application laboratory, and so on. According to Symrise, the main functions of the innovation lab include two aspects, one is to feel out the unknown system including formula system and efficacy evaluation system, and to form the formula and efficacy evaluation standard which is more suitable for Chinese consumers. The second is to provide support for the actual project, to provide customers with higher standard and more scientific efficacy evaluation, to provide the pre-testing before the three-party test and the dissemination of C-suite materials, etc., and to assist new products to be listed. The second is to provide support for actual projects, providing customers with more standardized and scientific evaluation of efficacy, providing pre-testing and C-end communication materials before three-party testing, and helping new products to be listed.
From this point of view, in addition to regard the testing cosmetics business as a main business for profit, the purpose of the cosmetic industry chain enterprises deploying testing cosmetics also includes R&D services for enterprises, to provide additional services for customers.
The next step: endorsement, scientific research, innovation
Looking at the entire cosmetics testing market, the third-party testing organizations to face the pressure of competition is also greater.
Some industry insiders said that the first two years of testing demand outbreak is mainly because a large number of products need to make efficacy addendum. This year, this demand is basically no longer available. More new products need to be filed. Now the frequency of new product launching are also reduced. The overall demand declined in the factory. The brand can do their own testing services. The orders of third-party testing companies naturally reduce.
But in the opinion of Wang Jing, now notice the strict investigation of "one license for multiple use", the demand for testing will grow, but the price of testing is lower and lower. "For example, whitening spot detection, early last year the market price is still 100 million-120 million yuan / unit. In last July, it fell to about 60,000 yuan and now the price 40,000 yuan is also common." And with more and more OEM companies, brands build their own testing companies, it further affects the order volume of testing companies.
An OEM responsible person also told CHAILEEDO: “after we set up a testing company, a lot of testing can do it ourselves and do not need to find a third-party testing. Only the busy time we will find a third-party organization outsourcing.
So, how should the testing companies survive?
Wang Jing told CHAILEEDO, foundry enterprises, brands that began to do testing will certainly dilute the amount of testing. But there are hospitals and other strong background backing as well as SGS-certified testing organizations are unlikely to be affected. "It's all the same qualification, and people are definitely willing to choose bigger companies." He further said.
In addition to gaining more endorsements for themselves, some testing organizations are no longer limited to product efficacy testing, and have begun to get involved in the R&D, cooperating with companies in basic research, product development, and front-loading testing services.
According to the China Light Industry Federation Cosmetic Efficacy Evaluation Inspection and Testing Center (Beijing) Director Wu Jinhao, his testing center is now not only doing compliance services, but also doing more in-depth cooperation in scientific research with enterprises. "The core is still scientific and technological innovation. Through the introduction of new technical means, assessment means, from the basic research, pre-product research and development stage, we can carry out more cooperation with the enterprise, as well as in the test results of the digital visualization of the display of more innovation, etc. Ultimately it can empower for the efficacy of the products."
To summarize, when the efficacy is in the trend, the cosmetic testing also steps into the "scientific era". It began to penetrate the product from R&D to market. The dissemination of all aspects of raw materials, foundries, brands and testing organizations are also using their own scientific and technological resources for the empowerment of the product, together telling the story of the efficacy and science to consumers.
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