As consumption returns to rationality and regulations tighten, the beauty industry's growth strategy is shifting from a "traffic-driven" model to a "dual-driven" model of products and services. The functional skincare segment continues to thrive, with the "triad" of sustainable ingredients, synthetic biological active ingredients, and AI-powered personalized solutions becoming a new focus for brand competition. At the channel level, offline specialty stores and skin care centers partnering with doctors are experiencing significant growth, while online, the focus is shifting from influencer recommendations to a balanced emphasis on expert co-creation and efficacy verification.
First, on the raw material side, biofermentation and enzyme engineering have significantly improved the purity and stability of active ingredients. A new generation of mildly effective ingredients, represented by peptides, polyhydroxy acids (PHAs), and "microbiome-friendly" sugars, are addressing the irritation and tolerability shortcomings of traditional retinol and fruit acids. Several upstream companies have launched "hypoallergenic, traceable" raw material solutions, coupled with ISO and COSMOS certifications, to help brands improve their regulatory review and cross-border filing success rates.
Secondly, in terms of formulations and delivery systems, nanocarriers and multi-encapsulation technologies have become hot topics. The combination of liposomes, solid lipid nanoparticles (SLNs), and multi-chamber microcapsules enables more precise transdermal delivery of unstable ingredients such as pure vitamin A and L-vitamin C, while also providing more controlled release. With an "immediate-sustained" biphasic profile, consumers can experience a noticeable improvement in skin feel in the short term, while also experiencing measurable changes in dark spots, redness, and fine lines over the medium and long term, boosting repeat purchases.
Third, AI is transforming personalization from a marketing tactic into a product force. Using mobile phone imaging and cloud-based skin analysis, the system can identify photodamage, uneven pigmentation, and barrier status beyond the entry-level questionnaire, generating formulation recommendations and a consistent usage schedule. Some brands are offering "on-demand" essence capsules and "pluggable" active pods, leveraging member data for dynamic iteration. Algorithms automatically adjust active ingredient concentrations and combinations based on changes in climate, daily routines, or treatment phases, truly delivering personalized solutions for each individual.
In terms of sustainability, lightweight packaging and the increasing penetration of refills are driving PCR materials and single-material designs to become mainstream. Moving the supply chain forward to raw material production sites for carbon footprint accounting, combined with blockchain traceability, not only meets ESG disclosure requirements in overseas markets but also provides a compelling platform for brands to showcase their "science and responsibility" narrative. Notably, evidence-based efficacy claims are becoming a "hard threshold": in vitro mechanistic studies + subject-based evidence (at least four to eight weeks) + third-party testing reports are gradually becoming standard requirements for new product launches.
Channel trends Short
Video platforms still excel at content‑to‑commerce, but the price of traffic keeps creeping up. In response, brands are rebuilding their owned ecosystems and tightening ties with dermatologists, pharmacies, and professional care centers. By linking online screening to in‑person treatments and long‑term follow‑ups, they're lifting both average order value and lifetime value. Cross‑border growth now demands stricter compliance and end‑to‑end traceability, so companies with stable supply chains and a documented quality record win channel access more easily.
Industry outlook The beauty business is entering a smarter manufacturing phase
Rooted in biotechnology, steered by AI, and disciplined by sustainability. The brands that pull ahead will prove three things at once: real effectiveness, rock‑solid safety, and claims that can be independently verified. Those that weave continuous formula iteration into member programs-tuning actives to season, skin condition, and adherence-will carry greater certainty through the next shake-out.
