China’s lip makeup market witnessed substantial growth in 2023, reaching ¥26.28 billion, up by 13% year-over-year. This trend is expected to continue, with the market anticipated to expand to ¥37.95 billion by 2028. Contributing factors include government support, the rise of e-commerce platforms, and the influence of social media. Younger consumers, driven by a desire for unique beauty experiences and personalized aesthetics, are increasingly embracing lip products, creating ample growth opportunities for both established and emerging brands in China.
Consumer Preferences and the Rise of Domestic Brands
A significant shift in consumer loyalty toward domestic lip makeup brands has emerged. iiMedia Research’s data reveals that 59.3% of consumers now prefer domestic brands over international ones. This shift is largely attributed to price advantages, with the most popular price ranges for lipsticks being ¥101-¥200 (41.4%) and ¥51-¥100 (36.3%). Chinese brands have gained traction by offering quality products at accessible prices, helping them secure a strong foothold in a competitive market.
The research also indicates that 56.8% of consumers prioritize product reputation and 50.3% value unique product features when selecting lip makeup. With these insights, brands can better align their offerings with market demand by focusing on quality, innovation, and distinctive attributes that enhance brand trust and consumer loyalty.
Key Trends: Diversification and Quality Upgrades
With support from national policies and the growing influence of “She Economy”—a term used to describe the economic power of female consumers—the lip makeup industry is poised for significant growth. Domestic brands are adopting diverse strategies, such as strengthening digital marketing efforts and collaborating with Key Opinion Leaders (KOLs), to rapidly expand their market presence. However, building a lasting brand foundation and enhancing market penetration require brands to focus on core strengths and innovative capabilities. This includes developing comfortable, long-lasting, eco-friendly lip products that meet the demand for personalization and creativity, thereby driving industry-wide upgrades and differentiation.
Industry Analysis: Current Status and Competitive Landscape
Definition and Types of Lip Makeup
Lip makeup products are designed to enhance the appearance of lips through color, hydration, and overall aesthetics. These products come in four main types: lipsticks, lip glosses, lip tints, and lip liners. Apart from adding color, many of these products include formulations that offer moisturizing and protective benefits, catering to consumers' needs for both beauty and lip care.
Consumer Insights: Preferences and Brand Perceptions
Chinese consumers are increasingly knowledgeable about lip makeup, with 62.4% indicating they have a strong understanding of these products, and 41.4% considering lip makeup an essential part of their daily routine. Red shades remain a top choice, preferred by 55.5% of consumers, while 42.2% prioritize products with long-lasting colour.
This trend reflects the fast-paced lifestyle of modern consumers who seek practicality and durability in their beauty products. The popularity of long-lasting lip colours has driven brands to invest in innovative technologies that enhance adhesion, water resistance, and smudge-proof capabilities, ensuring flawless wear throughout the day.
### Rising Demand for Domestic Brands and Market Shifts
The report reveals a notable preference for domestic brands, which hold a market share of 59.3% compared to international brands' 39.2%. As Chinese brands continue to improve product quality and offer competitive pricing, consumer confidence in domestic options is rising. This shift indicates an evolving market dynamic where local brands are increasingly viewed as viable alternatives to international names.
### Addressing Industry Challenges: Innovation and Differentiation
Despite the growth, the lip makeup market faces several challenges. The data reveals that 68.7% of consumers believe products lack uniqueness, while 45.3% view packaging as overly simplistic. To stay competitive, brands must focus on innovation by introducing unique and high-quality products that add value for consumers. Customization, creative packaging, and reasonable pricing will also play key roles in maintaining consumer interest and loyalty.
### Embracing Personalization and Creativity
The demand for personalization is growing, with 58.7% of consumers interested in custom lip products and 52.9% seeking creative packaging. To meet these expectations, brands should prioritize unique, individualized offerings, explore innovative packaging solutions, and maintain affordable pricing. Increased investment in research and development can further strengthen market positioning and enhance product appeal.
China’s lip makeup industry is undergoing a profound transformation, with domestic brands rapidly rising and consumer preferences leaning towards personalized, high-quality, and affordable products. With the right strategies, brands can capitalize on the “She Economy,” embrace cultural aesthetics and cater to consumer demands for unique and sustainable beauty products. As the market continues to expand, brands that adapt to these trends and focus on innovation are likely to emerge as leaders in the Chinese lip makeup industry.
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