Ten Chinese Companies on the Top 100 Global Beauty Companies
- Chaileedo Press
- Apr 26, 2023
- 5 min read
CHAILEEDO noticed that three Chinese beauty companies focusing on functional skincare made the list of the top 100 global beauty companies released by WWD.
WWD recently released the list of the top 100 global beauty companies, of which 10 Chinese companies made the list, three more than last year.
What's new for Chinese beauty companies in 2022, amidst the changing environment and the turbulent international political and economic situation? Which cosmetics sell best?
Three new Chinese companies are on the list
According to the Top 100 list revealed by WWD this year, the Chinese companies on the list, in order of ranking, are PROYA COSMETICS CO. LTD.(hereinafter referred to as PROYA), Bloomage Biotech, Shanghai Jahwa, S’Young, Yunnan BOTANEE Biotechnology Group Co., Ltd.(hereinafter referred to as BOTANEE), JALA, YATSEN, CHICMAX, JOY Group and Marubi.
The highest-ranked company, PROYA, came in at No. 40 with 2022 sales of 5.9 billion yuan ($878.1 million), with brands such as PROYA, Uzero, Anya, Yoya, Cats &Roses, Timage, Ins Baha, Off&Relax. Bloomage Biotech followed it and ranked 47th in the WWD Top 100, with revenues of 5.08 billion yuan ($756.1 million), 0.82 billion yuan ($122 million) lower than PROYA.
Shanghai Jahwa 2022, in third place, had sales of 5.08 billion yuan ($756.1 million), ranking 48th in the WWD Top100. The remaining companies are YATSEN (No.62), Chicmax (No.71), Joy Group (No.86) and Marubi (No.97).
Through The 2022 Beauty Top 100 from WWD in 2022 and 2021, CHIALEEDO found that 10 Chinese companies made the list this year, compared to seven last year. The new entrants this year are S’Young, BOTANEE and JOY Group.
In addition to the new entrants, the ranking of companies originally on the list has also changed significantly. PROYA improved from 49th place last year to 40th this year. Bloomage Biotech rose from 65th place to 47th this year. Several other beauty companies showed a downward trend, with Shanghai Jahwa dropping from 43rd to 48th, YATSEN falling from 39th to 62nd, JOLA dropping from 51st to 57th, CHICMAX from 58th to 71st and Marubi from 91st to 97th.
(Source: The 2022 Beauty Top 100 from WWD)
Significant gains for functional skincare companies
Of the 10 companies on this year's list, eight are skincare-based, with three of them - PROYA, Bloomage Biotech and BOTANEE - focusing on functional skincare. CHAILEEDO notes that all three Chinese companies have exceeded 5 billion yuan ($722.3 million) in revenue this year.
PROYA COSMETICS CO. LTD.(hereinafter referred to as PROYA), a leading Chinese brand focusing on skincare products, cannot grow without its a-hero-product strategy. For example, it launched PROYA Deep Ocean Energy and PROYA Double Effect Brightening Essence in 2020. The two products promoted PROYA to upgrade its brand under the wind of efficacy skincare, according to public information. During the Chinese Double 11 Shopping Festival in 2022, PROYA Deep Ocean Energy and PROYA Double Effect Brightening Essence sales across the internet exceeded 200 million yuan ($28.9 million).
Recently, PROYA officially announced its 2022 financial data with a record high performance. Its annual revenue achieved 6.385 billion yuan ($922.4 million), up 37.82% year-on-year. Its net profit attributable to the parent company was 817 million yuan ($118 million), up 41.88% year-on-year. The financial report showed that its single brand PROYA’s annual revenue was 5.264 billion yuan ($760.4 million), accounting for 82.74% of total revenue, making PROYA the number one Chinese local beauty brand.
(Credit: PROYA Deep Ocean Energy and PROYA Double Effect Brightening Essence )
Another company mentioned above, Bloomage Biotech, is also a leader in China's functional skincare sector. According to public information, Bloomage Biotech was established in 2000. In 2007, the company became the world's largest producer of hyaluronic acid. Its brands are mostly functional skincare brands, including BIOHYALUX, QUADHA, MEDREPAIR and Bio-MESO etc.
From the data of the last 5 years, Bloomage Biotech's functional skincare business has grown rapidly from 290 million yuan ($41.9 million) to 4.607 billion yuan ($665.5 million) in just 5 years with a growth rate of over 100% for four consecutive years from 2018 to 2021. It showed a slowdown in 2022 but also achieved a high growth rate of 46.07%.
It can be said that after five years of development, Bloomage Biotech has transformed from a traditional hyaluronic acid raw material enterprise into a full industry chain enterprise covering raw materials, medical end products and functional skin care products.
(Credit: QUADHA Single Essence at Bloomage Biotech )
Moreover, the strength of BOTANEE, a new company on the list this year, should not be underestimated. Founded in 2010, BOTANEE is a large health industry group integrating R&D, production and marketing, and is positioned as skin health and internet+. In addition to the core brand Winona, BOTANEE also has WINONA Baby, Beauty Answers, Zirun, Doudoukang and other brands.
Recently, BOTANEE released its 2022 results report. The report shows that it achieved revenue of 5.014 billion yuan ($724.3 million) in 2022, up 24.65% year-on-year. Its main brand, Winona, which focuses on sensitive skin care, has contributed more than 97% of BOTANEE's revenue for many years.
According to statistics from Euromonitor, a consumer market research firm, Winona ranked eighth in the skincare market during the reporting period, climbing two places from FY 2021. Its market share in the Chinese dermatology-grade skincare sector rose to 23.2%. During last year's Chinese Double 11 Shopping Festival, Winona was ranked 6th in the beauty category on Tmall and was the only Chinese brand to be listed in the Top 10 in the beauty and skincare category on the Chinese Double 11 Shopping Festival for five consecutive years.
(Credit: Winona Sunscreen Cream at BOTANEE)
China's functional skincare market is becoming more segmented
According to CHAILEEDO Data, the functional skincare market achieved from 19.6 billion yuan ($2.8 billion) to 30.8 billion yuan ($4.4 billion) during 2019-2021. It is estimated that it will exceed 41.1 billion yuan ($5.9 billion) and 55.5 billion yuan ($8 billion) in 2022 and 2023.
At the same time, the sector of functional skincare is becoming more and more segmented. As Bloomage Biotech pointed out in its annual report, "At present, skincare consumption is becoming increasingly mature. Consumers’ demands upgraded from basic skincare to professional skincare with stronger functional attributes. Then consumers pursue aesthetic medicine. With escalating and irreversible demand, the market started to show the development trend of segmentation."
The diversified demand has led to a more segmented Chinese skincare market, which has led to the emergence of category concepts such as functional skincare, dermatological-grade skincare, sensitive skin care and consumer concepts such as ingredient parties.
Chinese skincare-focused cosmetic companies have taken note of this trend of segmentation in China's functional skincare market and have invested in the sectors in which they excel.
For example, Bloomage Biotech, which focuses on hyaluronic acid skincare, has launched four functional skincare brands in different sectors. According to the information released by Bloomage Biotech, BIOHYALUX focuses on hyaluronic acid technology repair. QUADHA is precision skincare hardcore anti-aging. Bio-MESO is an oil skin skincare brand. MEDREPAIR focuses on the sensitive skin.
CHAILEEDO found that this year, a number of Chinese brands have upgraded their hero single product for the niche sectors of functional skincare. For example, Dr. Alva's Probiotic Mask (4x Centella Asiatica Extract + Genesis Rui Jing Yan ingredients), Arden Orange Eye Cream (with the star anti-oxidant ingredient Idebenone as the core to reduce free radicals, fight oxidation and synergise with 5 major anti-oxidant and anti-ageing ingredients) and Spring Letter Vitamin C Essence (using two ingredients, Tromantol and De-Lightening Muscle Belly, to form an anti-oxidant matrix) are all aces or staples of their brands.
PROYA has recently launched a 3.0 upgrade for its ace big-ticket product PROYA Double Effect Brightening Essence, claiming to use the exclusive ingredient Nox-Age® and upgrading ergothioneine to the high-purity ergothioneine Max for purer ingredients and gentler results. And L'Oréal continues to work on Pro-Xylane, using a 20% concentration of hyoscyamine pro in its eye creams to achieve a more efficient anti-ageing effect with a higher concentration of the ingredient.
This trend is a reflection of Chinese consumers' growing demand for more precise skincare. As Angie MA, Vice President of L’Oréal China and General Manager of L’Oréal China Dermatological Beauty Division said, "The whole market trend is actually due to consumers' self-advancement. The sector will be booming because consumers know more and more and are more knowledgeable."
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