Today, "Chinese Ingredients" Takes Center Stage!
- Chaileedo Press
- May 11, 2023
- 28 min read
On May 10th, the 7th China Cosmetic Trends Conference with the theme of "Chinese Ingredients" was held in Shanghai, co-hosted by Qingyan, Qingyan Intelligence, and CHAILEEDO, with strategic cooperation from Huiwen Biotech, and jointly supported by Nox Bellcow, Global Cosmetics, and Nutri-Woods.
Today (May 10th), the 2023 (7th) China Cosmetic Trends Conference, co-hosted by Qingyan, Qingyan Intelligence, and CHAILEEDO, with strategic cooperation from Huiwen Biotech, and jointly supported by Nox Bellcow, Global Cosmetics, and Nutri-Woods, takes place in Shanghai. The theme of this conference is "Chinese Ingredients." Representatives from leading cosmetic ingredient companies, benchmark enterprises/brands, and testing institutions from both domestic and international markets gather to discuss the development opportunities and challenges of Chinese ingredients.
At the conference, Qingyan Intelligence and Huiwen Biotech jointly release the "Thiotaurine Cosmetic Trends Insight Report". The publication of this trend report will undoubtedly assist in analyzing and predicting the latest industry developments, grasping the industry's direction, and fostering the industry's growth.
Cai Zhaoyang, Co-Founder of CHAILEEDO
"The Chinese Ingredients cosmetics market is expected to reach a size of 100 billion yuan within five years."
Prior to this trend conference, we interviewed more than 70 well-known experts, professors, and brand founders from both domestic and international markets, discussing a series of questions regarding Chinese Ingredients, such as what they are and what trends they represent. There were also many diverse suggestions made. It is often said that trends change every three years, and the premise of a trend is that there must be some kind of change. People are also very concerned about what changes the industry is facing now, because only through change can there be opportunities.
Over the past 20 years, the market trend in the cosmetics industry has shifted from importing to exporting. The supply has changed from OEM to raw material research and development. The channel has moved from “To B” to “To C”. Chinese consumers have become more culturally confident. The industry situation has shifted from channel-oriented to traffic-oriented, and then to the current focus on technology-driven.
Last year, the revenue of the top ten listed cosmetic companies in China increased by 2% year-on-year, with an average R&D investment ratio of 3.6%, and R&D investment increased by 36%. The day before yesterday, I saw a column in "Person" magazine, where the CEO of CHANDO, the CEO of Marubi, and the CEO of BIOHYALUX all talked about their respective brand stories. These examples also indicate that we now have the money to invest in R&D and the ability to tell good brand stories, which has also driven our cosmetics industry towards technological advancement. Chinese Ingredients are the bridge between consumers and technology, which is why we are talking about Chinese Ingredients today.
Many people ask what Chinese Ingredients are. I believe that ingredients with Chinese characteristics, independent patent systems, and practicality are Chinese Ingredients. At this conference, CHAILEEDO released data to the industry for the first time, showing that the Chinese Ingredients cosmetics market size will reach ￥54.57 billion ($7.88 billion) in 2022, and is expected to reach ￥100 billion ($14.44 billion) within five years.
According to CHAILEEDO DATA, the average unit price of the top 10 Chinese Ingredients products sold online in 2022 is ￥414.6 ($59.86), which will narrow the price gap with foreign brands from 2.5 times to 1.4 times. This indicates that Chinese Ingredients will help Chinese brands break through and become high-end. In the future, the top 100 Chinese brands will all use Chinese Ingredients, and Chinese Ingredients will become a standard for top brands.
Today, the scientific research arms race in the cosmetics industry has entered a white-hot stage. In the next three years, telling good scientific research stories will be telling good brand stories. The six major trends in the Chinese cosmetics industry in 2023 are efficacy PRO, high-priced products, science+, customization, Chinese Ingredients, and going global.
Shen Anqi, Greater China Brand General Manager of Cha Ling
“Chinese ingredients belong to the world as well.”
There is a clear trend in both the global and Chinese high-end beauty markets towards emphasizing the element of "sustainable development." Consumers are no longer satisfied with just functional needs, but are looking for products that bring emotional satisfaction and happiness, have environmentally friendly packaging, green ingredients, and traceable systems, among other concerns.
Cha Ling, since its inception, has embedded "sustainable development" in its brand philosophy and continued to cultivate this concept - creating a sustainable, high-end beauty brand with Chinese elements to meet the needs of high-end beauty enthusiasts, which is our mission and vision.
In my opinion, an important factor in defining whether a brand is a high-end brand is whether it has historical heritage in craftsmanship, culture, and other areas. Cha Ling brand undoubtedly meets these standards in every aspect.
"Chinese ingredients not only belong to China, but also to the world." The birth of Cha Ling brand is closely related to the Chinese rainforest. The brand was specially created by the founder and CEO, Mr. Laurent Boillot, to fulfill the lifelong wish of his friend, Dr. Josef Margra, a German biologist known as the "father of tropical rainforest agriculture" to protect the Yunnan forest, Pu'er ancient tree, and rainforest ecological environment in China. This brand continues to inherit and promote his long-held concept of biodiversity conservation.
Cha Ling upholds the concept of "pure goodness" and carefully crafts each product. What does "pure" and "essence" mean for Cha Ling?
Firstly, Cha Ling's raw materials come from the Yunnan biological diversity forest, Pu'er tea, and each step of the process from picking, withering to sun-drying is completed according to the traditional process of making Pu'er tea by the Bulang people. We make Pu'er tea into tea cakes, store them for three years of natural aging, and then extract them in France. This is also a revival of the process of making Pu'er tea from the forest ancient trees, which is the "pure" aspect of Cha Ling.
The "essence" of Cha Ling comes from the fusion of newly extracted and aged tea components developed by the R&D team at LVMH headquarters, creating a patented ingredient "forest ancient tree Pu'er tea complex," which has excellent skincare benefits. In addition, the "essence" also includes the essence of Chinese culture, and each product is paired with traditional Chinese tools that have been improved and modernized, such as the improved scrape therapy board and fire-free cupping. Furthermore, the luxurious Essence of Cha Ling cream comes in an artistic ceramic jar, with replaceable cream refills according to demand.
Through the digitalization of all channels empowered by Sephora, Cha Ling is now present in 327 Sephora stores in China and 10 online channels, providing services to consumers at all times. Last year was a challenging year, but Cha Ling's sales doubled year-on-year, reflecting consumers' love and trust in the brand. It is worth mentioning that in July 2022, Cha Ling and Sephora achieved cumulative sales exceeding one billion yuan in less than three years. In the future, we will continue to forge ahead and strive to share the extraordinary "Chinese ingredients" with consumers.
Yang Shengping, Chief Scientist of Shanghai HUIWEN BIOLOGY
"Applied basic research is a reflection of brand competitiveness."
Good morning, experts and leaders. The topic I am bringing to you today is "The Industrial Application of Synthetic Biology in the Cosmetics Industry". From the evolution of the three major sources of technology in the cosmetics industry, we can see that natural products have a long history, chemical synthesis has developed rapidly since the 19th century, and biotechnology has flourished since the 1980s. The 21st century is the century of biotechnology, and the three sources of technology each have their own characteristics, which together drive the development of the industry.
The research system itself is a complex system, and research and development of chemicals is not the same as research and development of functional ingredients. Many people who work in technical research are prone to think that a cosmetic functional ingredient is just a chemical product, but it is not.
First of all, we need to consider industry standards and national standards, as well as research and development platforms for technology and industrialization, stability research, compatibility, application data verification, and modification of basic raw materials. Functional ingredients also need to be designed to meet market demand. Many research projects in universities do not ultimately translate into practical applications. I have a deep understanding of this, as researchers often do not know what enterprises need, and enterprises do not know what researchers can do.
The cosmetics industry has already entered an era supported by science and technology, and to create a scientific brand, we need to establish a scientific ecosystem centered around application solutions, functionality, technology, etc. We generally focus on products from the perspective of application solutions, functionality, and technology, combined with feedback from customers and the market.
Through collaboration among four teams, including systemic research, technology and process, quality, and application research, we complete the landing of high-tech products, bringing about a benign interaction between science and technology and the market. Our research system is actually a large team working together with multiple disciplines, ultimately interacting with the market, which is also the main goal of our research.
Zhao Lianming, General Manager of Personal Care Products for the Asia Pacific region and Greater China region at Ashland
"ESG is not a burden for the enterprise, but a necessary investment."
After nearly 30 years of rapid development in the Chinese cosmetics market, I believe this event will provide some new development ideas for our personal care industry. Beyond trends, we must also focus on the core concept of enterprise development, which is how to maintain sustainable development. Ashland's answer is to commit to sustainable development and implement ESG strategies.
Firstly, Ashland always focuses on innovation and solutions. In 2006, Ashland established a global efficacy laboratory in Shanghai. We believe that a true brand story needs efficacy as support; otherwise, it is misleading to consumers.
Another point is how to meet ESG. Many companies are exploring ESG, but is it a burden for enterprises? In Ashland's view, ESG is an opportunity for enterprise development and the cornerstone of supporting enterprise development.
Consumer surveys show that Chinese consumers are increasingly valuing the ESG concept. Among them, 47% of Chinese consumers are more willing to pay for environmentally friendly beauty/care products. 85% of Chinese consumers hope that well-known brands have more innovative and sustainable ideas. 66% of Chinese women pay attention to the proportion of natural ingredients in the formula, and 34% of Chinese consumers have intentionally purchased green products to develop a minimalist lifestyle. From this set of data, it is not difficult to see that Chinese consumers are becoming more mature.
Moreover, currently in China, 79% of consumers agree and pay attention to the environment and sustainable development, and pure beauty/sustainability is becoming increasingly important in the market. The awareness of sustainable development among consumers is continuously increasing, which also inspires us to find sustainable ingredients to manufacture products.
Therefore, ESG is a new starting point for Ashland's sustainable development materials. We regard ESG as an opportunity for enterprise growth and a driving force for development. This is not a burden for the enterprise, but a necessary investment. I think this is an important conceptual change.
Ashland creates sustainable new materials throughout the entire supply chain through technology. We not only collaborate with farmers and suppliers around the world but also work closely with local communities to ensure responsible procurement of natural or upgradable raw materials, minimizing the impact on the environment and ecosystems. At the same time, we use leading scientific research capabilities to define the composition of plant molecules, enrich the core ingredients contained in plants, and extract unique solutions.
Currently, Ashland has 41 production bases and 22 research and development centers worldwide. Ashland China is one of the three largest research and development centers in the world. Besides technical services, Ashland Shanghai R&D center also has the capabilities of research and innovation, product development, efficacy evaluation, etc., ensuring that Ashland can provide the best solutions for the Chinese market and consumers.
Qiu Xiaofeng, Vice President (R&D) of Nox Bellow
The representation of Chinese ingredients signifies that the industry has entered a higher stage of development.
Hello everyone, I am delighted to have the opportunity to share with you the Chinese ingredients in our Nox Bellow face masks. Chinese ingredients not only represent a trend, but also signify that the Chinese cosmetics industry has entered a higher stage of development. In the past five years, domestic brands have received increasing attention, especially in the mid-to-high-end market. The rise of Chinese brands is closely related to the importance of raw materials, which not only refers to the ingredients produced in China, but also includes ingredients that incorporate Chinese historical and cultural characteristics and represent Chinese scientific research and technological achievements.
From a market perspective, consumers' attention to Chinese ingredient products continues to grow, with Chinese ingredients accounting for more than 50% of face mask products. Next, I would like to share with you how Nox Bellow better applies Chinese ingredients in our face masks.
Firstly, Nox Bellow started with non-woven fabrics and has its own non-woven fabric production workshop and R&D team. We pay great attention to the source of fibers used in non-woven fabrics, including not only common cotton and plant fibers but also aloe vera fibers, mugwort fibers, tea fibers, soybean fibers, and other plant extracts. On the other hand, we have also made innovations in appearance by placing roses, peonies, osmanthus, and other Chinese or place of origin-specific flowers in the sandwich layer of the mask fabric, creating better visual effects.
Freeze-dried masks are also a type of expression of "Chinese ingredients." They were developed, produced, and promoted by Chinese companies and have gained widespread recognition and use in the cosmetics market. This also demonstrates that as long as there is innovation in technology and guaranteed efficacy that meets consumer demand, both domestic and foreign brands are willing to use them. In addition, electrospinning masks are also an excellent product form that can be stored in a dry state, dissolve quickly, and help the active ingredients penetrate continuously.
Regarding ingredients, we not only use raw materials directly provided by suppliers but also collaborate with them in joint research and development. We also conduct our own research, such as the extraction process of Tremella fuciformis and the secondary processing of Tremella fuciformis extract, expanding the production of shiitake mycelium, and researching various shiitake extracts.
We believe that in order to incorporate Chinese scientific research achievements into Chinese ingredient products, personalized customization is also necessary, which is the direction of future development. Nox Bellow will continue to delve into the field of Chinese ingredients and create products with more technological and product strength to meet market demand.
Chen Juanling, General Manager of Public Relations and Communications at JALA Group
"Important ingredients need to be communicated forever."
JALA Group was established in Shanghai in 2001 as a digitally-driven biotech and beauty company. JALA has established over 42,000 offline retail outlets nationwide, and is present on all major online e-commerce platforms, with over 67 million registered members.
Its core brand, "CHANDO", was born in 2001, while "Himalaya" represents the brand as a natural science and technology brand originating from the Himalayas. CHANDO's brand philosophy is to learn from the way of nature and pursue natural beauty. CHANDO is also the first brand in China to commit to not conducting animal testing. Natural ingredients, cutting-edge technology, outstanding efficacy, high-end branding, environmental protection, and no animal testing are the six core values of CHANDO's brand.
In 2018, CHANDO discovered the super yeast, HiMurchaSin, in the depths of the Himalayan Mountains. The birth of this super yeast was not accidental, but rather the result of JALA's powerful technical research and development capabilities. In 2013, JALA isolated 558 unique strains of microorganisms from the Himalayas, and successfully commercialized two proprietary raw materials, out of which HiMurchaSin was born after a decade of self-research and development. This ingredient was officially launched in May 2022 through the S-level project "Extraordinary Chinese Ingredients" on the Douyin platform. It is also an important breakthrough in the road of self-researched raw materials for domestic beauty brands, which has been highlighted by Chinese KOL Li Jiaqi.
In my opinion, there are four key conditions necessary for effective scientific communication of Chinese ingredients. Firstly, continuous investment in scientific research to consolidate the company's research strength with top-notch technology. Secondly, "designing" good scientific content and scientific communication cases from the discovery of ingredients. Thirdly, collaborating with influential and trustworthy communicators who have professional credentials. Fourthly, scientific communication of raw material ingredients should use language that is easy to understand.
Therefore, we have conducted over a dozen HiMurchaSin technology salons to experience and discuss with influential communicators who have professional credentials, in order to better promote the scientific communication of HiMurchaSin. Since its launch in June of last year, HiMurchaSin has received nearly 100 million exposures on various platforms.
In my opinion, the most important aspect of effectively communicating Chinese ingredients is to "invite in and go out." "Going out" is easy to understand, but what does "inviting in" mean? It means inviting professional media and KOLs into the research and development center to understand how JALA conducts research and development.
Over the past year, HiMurchaSin has received exposure of over hundreds of millions since its launch, which is inseparable from the help of KOLs. However, I think that one year of communication time is not enough, and it should be communicated for at least three years or more, because an important ingredient needs to be communicated for a lifetime.
On May 20th, a promotional video for CHANDO's Li Jiaqi tracing HiMurchaSin's origins will be launched, telling the story of HiMurchaSin to consumers. Recently, CHANDO's freeze-dried facial mask sold 93,000 boxes in Li Jiaqi's live broadcast.
Wu Zi, Head of the Synthetic Biology Application Research Center of SIYOMICRO
Synthetic biology helps Chinese brands to make a breakthrough.
Good morning everyone, it's a pleasure to have this opportunity to talk with you about how synthetic biology can help drive the iterative upgrading of the beauty and health industry, and share some of our practices and thoughts in this field. Synthetic biology is the third revolution in biotechnology, enabling humans to move from interpreting life to writing life and creating life, with significant potential applications in medicine, food, chemicals, agriculture, and other fields. Developing bio-manufacturing has become a consensus for all humanity to address climate change and energy transformation challenges, as well as an important area of strategic competition among major economies worldwide.
Returning to the cosmetics industry, extreme category subdivision and the pursuit of high product efficacy have become major trends. The impact of the pandemic and global economic downturn has also brought unprecedented competitive pressures. In such an uncertain era, more and more companies have realized that research and development is one of the few things with certainty, and having independent technology and forming a full industry chain upgrade iteration is the key to breaking through. The industry has transformed into a technology-driven one, with both leading and emerging brands investing more in scientific research. The scientific arms race has become intense.
How can we win in this scientific arms race and gain the most core differentiation advantage for our brands? To answer this question, we need to think from the perspective of the entire industry chain. Looking at the upstream supply chain, we do not have any gap with foreign companies in terms of formula and processing, but we have advantages in terms of cost, efficiency, and scale. On the other hand, in terms of innovative preparation of raw materials, we need to objectively acknowledge that due to resource and technological barriers, the cost of basic materials and active ingredients is high. At the same time, the improvement of cultural and national confidence provides a good development opportunity for the rise of Chinese ingredients.
In the synthetic biology race, we are actually starting from the same starting line as all foreign companies. We can use synthetic biology, a disruptive new underlying technology, to reconstruct the raw material production method, bypass technological barriers, and leverage the advantages of our country's industrialization to ultimately achieve a breakthrough on the curve.
Specific manifestations include: first, breaking through the technical and cost constraints of existing efficacy materials. Second, building an efficient and innovative model for new material development, accelerating basic research efficiency through the introduction of high-throughput platforms and artificial intelligence simulation calculations. Third, opening up the entire chain from basic research to applied research, helping Chinese ingredients expand their application in all scenarios, and using this as a fulcrum to help Chinese brands step onto a larger world stage.
Ding Lan, Director of CHAILEEDO Intelligence
"Morning protection and night repair" is becoming a new popular concept
Recently, CHAILEEDO Intelligence and Huiwen Biotech jointly released a report titled "Thiotaurine Cosmetic Trends Insight Report". The report aims to analyze the efficacy, application, and consumer demand of thiotaurine in the beauty industry, in order to gain insights into the future development trends of this ingredient.
Thiotaurine is an endogenous substance derived from deep-sea creatures such as vent clams, vesicomyid clams, and tube worms. This ingredient has detoxification effects and can combat free radicals caused by urban pollution, helping to reduce skin glycation and oxidative reactions, repair redness and other skin problems, enhance skin's self-protection, and improve skin elasticity. CHAILEEDO Intelligence research found that the main efficacy of thiotaurine is highly valued by the current beauty consumer population, especially the increasing demand for antioxidant, anti-photoaging, and anti-aging effects on social media.
Thiotaurine was once an exclusive ingredient purchased by the Shiseido Group. Shiseido, Anessa, Vital Perfection, and IPSA brands have added this ingredient to hundreds of products. After the expiration of the buyout contract with the Shiseido Group, Huiwen Biotech transformed this ingredient into a patented product with intellectual property rights. In response to the current market with fewer combined applications of thiotaurine, Huiwen Biotech innovatively developed two combinations of thiotaurine with suitable compound ingredients to better address the pain points of complete skin repair and achieve a 1+1>2 effect. Both combinations have obtained invention patents. This ingredient has been used in many popular domestic skincare products, such as Proya' Luxe Dual Anti-Aging Essence and YoungBeast Code Daytime Light-Resist Essence.
By comparing the years 2021-2023, we found that there have been significant changes in the public's understanding and focus on thiotaurine, as reflected in the related comments on social media platforms such as Weibo, WeChat, and Xiaohongshu. The frequency of comments related to "anti-aging and antioxidant" has decreased from 10.6% in 2021 to 6.1%, while the frequency of comments related to "repair" has increased from 9.7% in 2021 to 15%. More and more consumers are paying attention to the repairing effects of thiotaurine.
In addition, over 40% of consumers have indicated that they have used cosmetics containing thiotaurine, indicating that this ingredient already has a certain consumer base. We have also observed that emerging brands are breaking through with thiotaurine cosmetics, and the concept of "morning protection and night repair" is becoming a new trend, with the ingredient being the main reason for its popularity. The "Moring protection and night repair" concept follows the idea of daytime protection and nighttime repair, with formulas being gentler and suitable for sensitive skin. The main idea is to use milder antioxidant and repair ingredients to replace VC and VA components. Thiotaurine is a representative ingredient in this regard.
Kungchi HSU, L’Oréal R&I China Skincare Development Lab Director
"Yue Sai is the brand within L'Oreal Group that uses Chinese ingredients most comprehensively."
Yue Sai is the only high-end skincare brand originated in China and tailored for Chinese women under the L’Oréal Group. It is a leader in contemporary Chinese beauty, adhering to a unique philosophy of combining Chinese and Western skincare techniques.
For over 30 years, Yue Sai has been dedicated to researching Chinese ingredients and incorporating them into beauty products. After joining the L’Oréal Group, Yue Sai combined its expertise with L’Oréal’s research and innovation capabilities to unlock, enhance, and reinforce the powerful skincare properties of Chinese herbal ingredients with advanced technology. Yue Sai also designs ingredient combinations for different ages and aging concerns, such as triple Ganoderma lucidum with triple VC, and cordyceps extract with Pro-Xylane acid.
Yue Sai's use of Chinese herbal ingredients is demonstrated in three main aspects: firstly, green chemistry, which extracts highly concentrated or pure and safe ingredients through biotechnology and green processes, achieving better sustainability and reducing environmental impact. Secondly, advanced penetration technology, such as ingredient encapsulation and formula technology, to enhance the penetration of active ingredients into deeper layers of the skin. Thirdly, ingredient combination technology, which seeks synergistic ingredient combinations for Chinese ingredients, creating the strongest combination of Chinese and Western ingredients for optimal results.
I believe that Chinese ingredients do not need to be limited to a solo approach and can be combined with biotech ingredients for mutual benefits. For example, Yue Sai uses patented low-temperature microjets to extract cordyceps extract, combined with L’Oréal’s flagship ingredient Pro-Xylane acid, and formula penetration technology. The newly launched Yue Sai Liumen series products have achieved effective improvements in wrinkle reduction, firming, and repair.
Overall, Yue Sai has long been cultivating Chinese ingredients and integrating them with advanced technology to provide Chinese women with the most suitable skincare products and solutions for different ages and concerns.
Qiao Xiaoling, R&D Department Director of Lily&Beauty
"Chinese ingredients should be considered a type of technology rather than just a single ingredient."
The topic I am sharing today is "Formula Technology Empowers the Development of Chinese Ingredients". Lily&Beauty (605136.SH) is a cosmetics online retail service provider that focuses on consumer big data insights, refined operations, and brand marketing. The company's self-owned brand, Meiyitang, is an effective skincare brand based on ceramides, aimed at helping consumers solve problems such as allergies, dullness, and aging caused by damaged skin barriers at the root. Jadeauty is a brand that combines Chinese modern technology with Chinese characteristic plants.
I think Chinese ingredients are actually the technological achievements and new ingredients that Chinese companies have made through solid basic research and applied research. It not only includes our independently innovated ingredients but also technologies in which we have intellectual property rights, basic research, and achievements. It should be considered a type of technology rather than just a single ingredient.
We must understand what Chinese ingredients are, what their effective active ingredients are, why they can work on the skin, what the target points of their effects on the skin are, and how to apply them in formulations. This is my understanding of the connotation of Chinese ingredients.
Chinese characteristic plant resources are particularly abundant, and the deep application of Chinese characteristic plants is already in a state of rich diversity. With the support of new technologies such as low-temperature carbon dioxide extraction, cell extraction technology, and cell membrane encapsulation technology, our awareness of protecting the place of origin is increasing. In addition, cutting-edge interdisciplinary technologies are also merging and developing. With the support of synthetic biology technology and organic synthesis technology, Chinese companies have achieved results in hyaluronic acid, recombinant collagen, small molecule peptides, and ingredients such as methoxsalen, icariin, and surfactants.
So far, 51 new raw materials have been registered, of which 30 are functional active ingredients, and 83% of the active ingredients are independently researched and developed by Chinese companies. This is a very encouraging number. However, in the continued development of Chinese ingredients, the four core issues of safety, stability, efficacy, and aesthetics are worth attention.
How can formula technology help the development of Chinese ingredients? The fusion of nanocarrier and targeting technology, controllable release technology, and microfluidic encapsulation technology can be further explored and applied in the cosmetics industry. Microfluidic encapsulation technology can allow active ingredients that cannot coexist in one system to exist in a formula, achieving the compound of various functional ingredients. The electrospinning technology we are researching uses plant-derived biodegradable materials, which can allow active ingredients to have a long-term effect on the skin and may also solve the problem of sunscreen penetration. In addition, there is still a lot of imagination space for liquid crystal technology, eutectic technology, ionic liquid technology, and other technologies in cosmetics.
From the perspective of formulations and technology, there are still many directions and dimensions to help the landing of Chinese ingredients. I believe that with the joint efforts of industry colleagues, we can achieve a strong alliance and mutual assistance between formula technology and Chinese ingredients, making greater contributions to consumers, brands, and the industry.
Yu Shan, Chief Technology Officer of Global Cosmetics' Medical Research Collaboration Platform
Medical research collaboration can promote rapid progress in cosmetics research and development.
In recent years, I have observed two phenomena. Firstly, consumers are becoming more rational and demanding a deeper understanding of products, as well as greater transparency in product development. Secondly, the pharmaceutical and cosmetics industries are gradually converging, with more and more brands investing in product development and formulation.
Undoubtedly, products are created to serve the market, and the market serves consumers. Nowadays, consumers are more willing to trust the opinions of professionals to understand the causes of their skin problems and to find suitable products. This change in consumer behavior and mindset has also forced the cosmetics industry to engage in medical research collaboration.
From Global Cosmetics perspective, "Chinese ingredients" refer broadly to innovative and practical raw materials developed and produced by Chinese enterprises. Chinese ingredients can be plant or animal-derived materials with Chinese characteristics, chemical synthesized materials, or bio-synthesized materials with higher technological content.
Currently, bio-synthesis technology is mainly based on fermentation, with the advantages of high biological activity and safety, but it also faces challenges such as high project investment, long cycles, and high entry barriers for enterprises.
As a pharmaceutical company, I often find that the investment cycle for a project is very long, possibly up to 10 years, and the cost is also very high. For example, investment in a relatively complete biopharmaceutical laboratory may exceed 20 million RMB. In contrast, the cosmetics industry has a very short research and development cycle and a very fast product iteration, so brand owners often find it challenging to afford such high investments. Therefore, in this context, medical research collaboration between pharmaceutical and cosmetics companies is one of the ways to promote rapid progress in cosmetics research and development.
For example, Global Cosmetics is currently collaborating on five scientific research projects with institutions and pharmaceutical companies such as The Chinese University of Hong Kong, Hong Kong Polytechnic University, Hong Kong Nano and Advanced Materials Institute, Southern Medical University, China Pharmaceutical University, and LinkedCare BioTech. They integrate and optimize resources in a short period by leveraging their own platform resources, past research experience, and historical research achievements.
In May of this year, Global Cosmetics launched the first bio-material, Skbrella FN, developed in collaboration with Uni-Bio Science Group Limited, which is a small molecule high-activity recombinant human fibronectin that effectively promotes wound healing and significant cell adhesion. In the cosmetics industry, it has the functions of repairing skin barriers and soothing. This material has the advantages of "1+3+2", with "1" referring to the pure process, "3" referring to three key technologies, and "2" referring to two stages of efficacy evidence. The entire process, from seed cell bank to final fibronectin raw material, undergoes 16 processes and 16 critical control points, with the goal of creating high-quality, high-efficacy, and cost-effective raw materials for brands and consumers, and providing more product connotations for brand and product managers.
Ren Hankun, Dean of the Nutri-Woods Taihekangmei Research Institute
"The core connotation of Chinese characteristic plant resources needs to be realized through technology."
Good afternoon, distinguished guests. Today, my topic focuses on the plant ingredients and characteristic plant resources in China. We will explore together why Chinese characteristic plant resources are extraordinary. We will discuss the traditional advantages and future potential of these resources in terms of technology.
We do not have the qualification to define what Chinese characteristic plant resources are. However, we hope to provide a definition that focuses on plants that are native to China and have obvious unique elements within the natural environment of China. These plants should also have a history of traditional use in Chinese culture and be effective in promoting beauty.
Why do we consider Chinese characteristic plant resources to be extraordinary? We can see that there are many small categories within this concept, such as the nine major Chinese herbs, representative plants in the "Compendium of Materia Medica," ethnic medicine such as Miao medicine and Dai medicine, and some distinctive regional plants. In the research of plants such as dendrobium, snow lotus, and Chinese juniper, we combine the original powerful efficacy of these characteristic plants with modern scientific research on skin care, exploring effective ingredients and mechanisms of action.
The state encourages cosmetic companies to combine Chinese traditional advantage projects and characteristic plant resources with modern technology to develop cosmetics. This is not only a national policy but also a trend. In the future, Chinese characteristic plant resources can be combined with traditional medicine concepts and modern technology to conduct precise research on specific populations.
In summary, why are Chinese characteristic plant ingredients important? Because they meet the rational and emotional needs of consumers and ultimately serve the brand. The trustworthiness of the brand and the zero-cost communication are the bottom-line logic that ensures the long-lasting vitality of Chinese characteristic plant resources. Chinese characteristic plant resources have their core connotations, but they need to be realized through technology.
Everyone is looking for trends, but we believe that what conforms to natural laws is the ultimate trend. Guided by ideas and informed by nature, this is our fundamental thinking and logic. Thank you very much for your time, and we hope to work with more like-minded partners to shoulder the future of the Chinese cosmetics industry.
Hu Gang, General Manager of R&D Center of OSM
"Only through interdisciplinary integration can cosmetics technology be formed."
"Chinese ingredients" can be said to be one of the hottest terms in the industry this year. Since 2021, the industry has been paying continuous attention to this concept, and even organizing selection activities for Chinese ingredient raw materials. Currently, the term "Chinese ingredients" has been widely accepted.
In recent years, the most representative development of Chinese ingredients is reflected in the PCHi Fountain Awards shortlist. In 2021, 33% of Chinese raw materials were shortlisted for this award. In 2022, it was 36%, and this year the proportion has increased to 50%.
I also participated in the evaluation process of the Fountain Awards, and from the information of the participating companies, I can see that domestic raw material companies have not only expanded their research on ingredients/raw materials, but also greatly improved the depth and comprehensiveness of their research.
Similar to most industry professionals' understanding of Chinese ingredients, I believe that Chinese ingredients refer to ingredients with Chinese regional, cultural, and resource characteristics, or ingredients that are independently created by Chinese companies and have technological advantages and barriers.
Regarding the topic of "Chinese ingredient's overtaking in the curve," I believe that overtaking in the curve means surpassing the opponent by taking a different path than previous competitors. The development of Chinese ingredients by Chinese brands is clearly an important path for raw material overtaking.
Since 1967, OSM has been conducting research on pearls, which we divide into a technological route and a cultural route. The technological route includes research on pearl cultivation technology, the application of pearl powder, research on active ingredients in pearls, and now mainly focuses on research on active ingredients in pearl peptides. The cultural route is to explore the stories behind pearls by establishing a pearl museum and pearl cultural park.
The application of pearls in skincare is not an intellectual tax. For example, OSM's core ingredient Hydrolyzed conchiolin protein (HCP) is a technology-based whitening ingredient that effectively inhibits ET-1, preventing darkening from the source. It also inhibits melanocyte dendrites and intercepts melanin transport.
Pearls are the core of OSM's product technology and culture, but our research is not limited to pearls. We have done a lot of research in other areas, such as plants that grow in extreme conditions in high-altitude regions and polar microorganisms. Through research, we have found that products fermented by combining polar microorganisms and pearls have remarkable anti-aging effects, and we are currently applying for a patent for this.
In fact, cosmetics are not just about technology, but the fusion of technology, art, and fashion. Cosmetics technology is also not just about ingredients, but a product of interdisciplinary integration. Therefore, while paying attention to ingredients and technology, brands also need to pay attention to the overall performance of their products to provide consumers with a better user experience.
Dr. Xin Fang, Senior Scientist and Vice President of Product at Readline
"The development of cosmetic ingredients can draw on the standardized process of developing generic drugs."
Good afternoon, it's my pleasure to share with you our understanding of Chinese ingredients. Today, my topic is "Future Three Trends: Innovation Opportunities of Chinese Ingredients from Industry, Industry Chain, and Business Perspectives".
From an industry perspective, cosmetics have entered the era of efficacy, with a potential market space of 40 billion yuan for functional skincare products. With the improvement and maturity of the regulatory system, the industry is accelerating towards specialization and standardization. However, the supply of high-quality basic and active raw materials in the domestic cosmetics industry still highly relies on overseas suppliers. The concepts of safety, health, greenness, and sustainability are accelerating their penetration into the Chinese market, and concepts such as pure beauty and sustainability are becoming popular. The green chemistry concept is also gradually becoming an important consideration for domestic brand owners and raw material suppliers. Basic functions such as moisturizing and cleansing can no longer meet market demands, and brand owners and raw material suppliers are now focusing on targets, pathways, formulations, and production methods. This is a necessary path for the industry to become more professional and mature.
From an industry chain perspective, synthetic biology can greatly expand the range of biological synthesis substances and significantly enhance the space for biological synthesis products. The essence of biotechnology is a way of obtaining substances, and for it to become a mature production method to change the entire industry, it needs to meet four requirements: Does it have the potential to overturn existing production methods? Can it be transformed into industrial advantages? Can the industrial advantages be transformed into the competitiveness of specific products? Can the products gain market recognition and form commercial advantages?
From a business perspective, we believe that functional skincare products are consumer goods with professional attributes, located between ordinary cosmetics and pharmaceuticals. Safety and effectiveness are explicit factors that influence consumer purchasing decisions, and this also affects the trend of cosmetic efficacy, with anti-aging gradually becoming a basic care requirement and sensitive skin care becoming an explicit demand.
The regulatory system of the cosmetics industry is gradually approaching that of the pharmaceutical industry. The general process for developing new drugs is ten years and one billion dollars. If we follow the R&D process for innovative drugs, the cost and time for developing new cosmetic ingredients far exceed the financial return and product life cycle. Therefore, at this stage, the development of new cosmetic ingredients is more suitable for standardized processes similar to those for developing generic drugs. For raw material suppliers, it is not just about producing raw materials, but also about completing the entire process from design to production, including quality research, safety evaluation, efficacy evaluation, declaration and certification, and other supporting systems.
Nowadays, the industry is in competition, but what we need is "evolution". We need to turn our technical advantages into customer product power, serve customer market power, and expand market brand power, while constantly achieving our own evolution and gaining market recognition. This is the self-cultivation of a raw material supplier and is also the natural way of the "shared growth" core value of Readline.
Nicole, Compliance and Technology Director of Yiwi Testing & Evaluation
"New regulations promote the rise of Chinese ingredients."
Yiwi Testing & Evaluation is a service company that specializes in efficacy testing, sensory evaluation, safety assessment, compliance, and innovation claims. Today, I would like to discuss with you the opportunities and challenges of Chinese ingredients in the context of new regulations.
From the perspective of raw materials, there are two key points to pay attention to next year. The first is the submission of safety information for raw materials, which has been extended to next year. The second is the safety evaluation report, which currently requires a simplified version to be submitted. However, starting from May next year, the complete version of the safety evaluation report will be required, which involves more than ten toxicological experiments. Companies will need to provide a lot of materials to prove that the raw materials are safe under usage conditions, which may pose a certain difficulty for them.
It is worth noting that the Cosmetic Supervision and Administration Regulation (CSAR) explicitly encourages companies to conduct research on Chinese traditional characteristics and Chinese botanical resources. I believe this is also a great opportunity for Chinese ingredients.
From the perspective of new raw material registration, as of the end of April 2023, 62 new raw materials have been registered and filed since 2021. These new raw materials are mostly universal, such as skin protectants and skin conditioners. Currently, safety evaluation and toxicological test data are the two major difficulties in the new raw material filing process, with long preparation cycles and high costs.
Overall, there are seven key points that raw material suppliers need to pay attention to under the new regulations. In addition to submitting safety information for raw materials and safety evaluation reports, there are also new raw material filings, new mechanism research and efficacy verification, technical innovation (transdermal/stabilization), raw material claims and scientific communication, and sustainable development. The latter five mainly focus on efficacy claims.
Currently, the pathway from potential efficacy of raw materials to legitimate testing indicators or advertising language has not yet been fully established. Companies need to learn how to build a scientific and low-risk method of claim-making to achieve the desired advertising effect. Yiwi Testing & Evaluation has developed a set of relevant internal guidelines, including risk vocabulary and methods for conducting efficacy evaluations based on regulatory requirements, which can be used as a reference for companies.
He Jingyu, Director of New Material Development Center of Uniasia Research Institute
“Substances containing Chinese genes are called Chinese ingredients.”
I believe that any substance containing Chinese genes can be called a Chinese ingredient, including elements such as independent research and development, traditional history and culture, technological barriers, and leading quality. Remarkable Chinese ingredients give brands a unique character, demonstrate scientific and technological innovation abilities, and can enhance the competitiveness of enterprises or brands and improve product efficacy.
When it comes to Chinese ingredients, efficacy cannot be ignored. Efficacy is determined by the ingredients themselves, which can be considered as internal factors, while the true manifestation of efficacy requires a certain application scenario, which can be understood as a formulation system and dosage form, i.e., external factors. Ingredients can be considered from the perspectives of source, efficacy, and safety, with safety being the most important factor. Computer simulations, in vitro physicochemical testing, cellular and molecular studies, 3D skin, and clinical evaluations can all be used for efficacy research on raw materials.
Here are a few exploration methods for Chinese ingredients. First, Chinese ingredients can leverage the concept and technology of pharmacodynamic material research to study the application of Chinese characteristic resource efficacy materials in dermatology and apply them to the development of cosmetic and daily use product ingredients. Second, establish pharmacokinetic and pharmacodynamic models to explain the rules of changes in efficacy materials in the skin microenvironment, allowing Chinese ingredients to be more scientifically expressed and applied. Third, in herbal plants, Chinese ingredients have a main component, but there are many similar or derivative substances with similar efficacy.
The opportunities for Chinese ingredients are reflected in four aspects: resources, technology, market, and policy. In terms of resources, there is still a lot of room for development in both land and marine resources. In terms of technology, biosynthesis, non-cellular systems, bioinformatics, artificial intelligence, and other technologies can be applied to the research, production, and testing of Chinese ingredients. In terms of the market, consumer recognition is constantly improving, and in terms of policy, regulations are continuously improving.
Uniasia Research Institute has two research and development centers in China and Australia, and is currently focusing on research in the areas of natural plant efficacy raw materials, cell biology, and skin microbiome. It has established a research and development system based on basic research, technological platforms, product planning, and brand matrices. Currently, Uniasia Research Institute has more than 100 plant raw materials, 42 composite raw materials, and 35 microbial ecological ingredients in reserve. In the future, Uniasia Research Institute will develop a core ingredient for each of its products.
In addition to the dozens of industry leaders' insightful speeches at the conference, which inspired the industry's thinking, upstream and downstream companies in the cosmetics industry chain, such as raw material suppliers, factories, and testing institutions, also showcased their latest products and technologies related to Chinese ingredients.
Today, the connotation of "Chinese ingredients" goes far beyond ingredients with Chinese geographical, cultural, and resource characteristics, and also includes ingredients that are independently created by Chinese companies, with technological advantages and barriers. Clearly, Chinese ingredients have taken center stage, which will become another cornerstone for Chinese brands to stand in the world of cosmetics.
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