Latest Developments in The Global Cosmetics Industry Over The Past Two Years: Regulatory Collaboration And Diversified Growth

From 2024 to 2025, the global cosmetics industry, driven by the continuous improvement of regulatory systems, the evolution of consumer demand, and the accelerated implementation of technological innovations, is presenting a new landscape of "regional collaboration and differentiated development." From the deepening of strong regulation in mature Western and European markets to the rise of consumer demand in emerging markets such as Asia-Pacific, Africa-Middle East, and the global consensus on clean beauty and beauty tech trends, the industry is undergoing structural transformation. The focus of brand competition is gradually shifting toward compliance capabilities, localization adaptation, and the construction of technological barriers.

 

I. Upgraded Global Regulatory Collaboration, Precise Implementation of Regional Rules In the past two years, global cosmetics regulation has entered a "strong standards, strict enforcement" collaborative cycle, with major economies increasing requirements for ingredient safety and information transparency. The North American market, centered around the U.S., has seen the FDA advance multiple supporting measures under the Modern Cosmetics Regulation Act (MoCRA), clarifying key timelines such as the disclosure of fragrance allergens (effective May 2026) and asbestos testing methods (effective March 2026), and releasing guidelines for mandatory cosmetics recalls and launching the FDA Adverse Event Reporting System (FAERS) public data dashboard to strengthen consumer oversight. Sunscreen management has become a key area, with the bipartisan SAFE Sunscreen Standards Act proposed in June 2025 aiming to simplify the approval process for new ingredients. In December of the same year, the FDA initiated a GRASE (Generally Recognized As Safe and Effective) evaluation for the sunscreen ingredient bemotrizinol, loosening the industry's innovation constraints. The regulatory intensity in European market supervision is being upgraded in sync. In May 2025, the European Commission issued Regulation (EU) 2025/877, revising Regulation (EC) No 1223/2009 on cosmetic products. It added 21 substances, including dimethyl phosphonate, to the list of banned chemicals, and adjusted the control categories of substances such as trimethylbenzophenone phosphinate. This regulation will take effect officially from September 1, 2025. In the Asian market, Japan and South Korea are strengthening localization regulations. Japan's Ministry of Health, Labour and Welfare has improved the filing system for efficacy claims of pharmaceutical and cosmetic products, while South Korea's Food and Drug Administration has enhanced the inspection of ingredients for cross-border beauty products, requiring imported products to submit safety assessment reports from their countries of origin. Additionally, California in the U.S. and multiple EU countries have introduced bans on the sale of cosmetics tested on animals, making cruelty-free (no animal testing) an important compliance threshold for global brands. Import supervision is being tightened comprehensively. In July-September 2025 alone, the U.S. FDA rejected 48 batches and 79 batches of imported cosmetics, with the core reasons concentrated on non-compliant ingredients or incorrect classification.

 

II. Diversified and Fragmented Market Landscape, Emerging Markets as Growth Engines The global cosmetics market maintains overall growth resilience. NielsenIQ data shows that the global cosmetics industry sales increased by 7.3% year-on-year in 2024, with significant regional differentiation. In mature markets, the U.S. market is growing steadily. According to Circana data, the U.S. cosmetics market size reached $50.6 billion in the first half of 2025, with high-end cosmetics growing by 2% to $16 billion and mass retail channels growing by 4% to $34.6 billion, showing a value convergence feature of "high-end penetration and mass upgrade." Only 14% of consumers believe "high price equals high quality," with cost-effectiveness and efficacy becoming core decision factors. The Western European market is also growing by 7.7%, but the ultra-high-end skincare sector is facing transformation pressure. The global ultra-high-end skincare market grew by only 1.2% year-on-year in 2025, with Asia's market structure changes and the impact of medical aesthetics technology being the main challenges. Emerging markets have become the core driving force for global growth. The Africa-Middle East region leads with a growth rate of 27.1%, followed by Latin America at 19.1%. Although the Asia-Pacific region has the slowest overall growth rate of 3.7% globally, markets like South Korea and India are performing outstandingly. India has become a key focus for brand expansion, with a European skincare group setting a 30% growth target for the Indian market in 2025, aiming to open up new growth space through localized ingredient development. In terms of category performance, the global fragrance category is generally strong, with U.S. high-end fragrance sales growing by 6% to $3.9 billion in the first half of 2025, and mini travel-sized products selling four times faster than other sizes. In the hair care sector, both scalp care and hair loss prevention products are growing at twice the rate of the overall category. According to Grand View Research, the global cosmetics and personal care market will continue to grow from 2025 to 2030, with key regional markets maintaining a compound annual growth rate of over 7%.

 

III. Global Resonance in Consumption Trends, Highlighting Localization Needs "Ingredient Awareness" has become a global consensus, with clean beauty evolving from a trend to a basic need. 63% of American consumers prefer natural ingredient products, and 65% of American women aged 35-54 actively check ingredient labels. The Asian market places greater emphasis on efficacy validation, with 76% of high-end Asian users rejecting "story marketing." 63% of Gen Z ranks "ingredient transparency" as their primary consideration for purchases. Certifications like Sephora's "Clean at Sephora" and EU Ecocert have become crucial for consumers to quickly identify compliant products. Formulations free from sulfates, parabens, and artificial fragrances have become a standard for global brands. Sustainable consumption and emotional value demands are deepening globally. Sustainable beauty focuses on eco-friendly ingredients, recyclable/refillable packaging, and transparent supply chains. Many brands are reducing single-use plastic, adopting renewable materials to lower their environmental footprint. Meanwhile, the "scent economy" is rising, with fragrance categories becoming core carriers for emotional connections. Giants like Estée Lauder and Shiseido are heavily investing in fragrance experience zones and high-end fragrance brand strategies. Localization adaptation needs are prominent, with brands commonly adopting a "headquarters innovation + local in-depth development" model. For example, Japan's Kao leverages its headquarters' technological advantages while developing products tailored to local needs. Western brands are integrating local traditional herbs with modern biotechnology in markets like India, balancing global standards with localization preferences.

 

IV. Global Collaboration in Technological Innovation, With Personalization and Scientificization as Core In the past two years, global cosmetics technology innovation has shown the characteristics of "regional collaboration and breakthroughs across multiple fields," focusing on two major directions: ingredient research and intelligent devices. In terms of ingredient innovation, L'Oréal Group's 18-year R&D melanin-blocking ingredient Melasyl was launched globally in 2024, used in brands like Kiehl's and Vichy; Pelage Pharmaceuticals' hormone-free hair loss ingredient PP405 has entered late clinical stages,有望 to fill a gap in the global market; Asian brands have focused on the modern R&D of local herbal ingredients, promoting the global application of traditional skincare components. Intelligent beauty devices have become a global new growth point, with multiple products selected as the Best Inventions of 2025 by Time. The U.S.-based BoldHue foundation printer customizes foundation in one minute through skin tone scanning, supporting adaptation for different global skin tones and post-sun shade adjustments; L'Oréal's AirLight Pro hairdryer combines infrared and convection technology to meet the needs of different global hair types; European brands have introduced AR technology to showcase product molecular mechanisms, allowing consumers to intuitively understand the efficacy principles. These innovations are driving the industry's transition from "standardized products" to "personalized solutions," while brands are strengthening technical credibility by releasing third-party efficacy reports in collaboration with medical institutions to meet the stringent global consumer demand for scientific validation. Overall, in the past two years, the global cosmetics industry is undergoing a transformation period under the trends of regulatory collaboration, market diversification, and personalized demand, characterized by "the coexistence of global standards and local adaptation and the balance between compliance minimums and innovative breakthroughs." For brands, it is essential to stay aligned with global regulations and trend consensus while accurately grasping regional market differences. By leveraging technological innovation and localization strategies, brands can build core competitiveness to gain an edge in the global competition.