China reform speeds up cosmetics approvals as global players boost R&D

China’s government is updating its cosmetics safety and approval policies, which could make the cosmetics market easier to navigate for international brands that have been struggling to keep a stable footing in the country. Amid the regulatory shift, companies operating in the country, such as Cosmax and Clariant, are ramping up investment, innovation, and production capacity. 

China’s National Medical Products Administration (NMPA) has issued Opinions that focus on accelerating cosmetic approvals, stimulating innovation in raw materials, and strengthening safety oversight. The NMPA’s changes will gradually make China’s cosmetics rules more predictable for global companies amid years of reported slowdowns.

“According to statistics from the China Fragrance and Cosmetics Association, the transaction volume of China’s cosmetics market exceeded ¥1 trillion (US$140.7 billion) in 2024, making it the world’s largest consumer market,” the NMPA says.

Against this backdrop, Clariant is increasing its investment in China. The Swiss ingredient supplier has invested CHF 80 million (USD 99.8 million) to expand its Daya Bay facilities. The investment aims to boost specialty chemicals production for personal and home care, thereby helping Clariant meet rising performance demands in Asia.

“This investment represents a pivotal moment for Clariant’s operations in China,” says Christian Vang, business president of Care Chemicals at Clariant.

“With these expanded facilities, we are now better positioned to contribute to the health and well-being of Chinese consumers while supporting the growth of local industries with our innovative specialty chemicals.”

Moreover, Cosmax is expanding its microbiome research efforts in China after discovering a novel anti-aging yeast strain in Yunnan province. The South Korean cosmetics R&D and manufacturing company plans to expand its natural-resource microbial bank from the current 500 species.

“By 2030, China’s natural resource-based microbial library will be expanded to about 2,000 species, becoming the central axis of global microbiome research,” a Cosmax representative says. The expansion is designed to support the development of new beauty ingredients.

The regulatory moves and corporate investments together indicate that China is increasingly being positioned as an important market for science-based cosmetic development.

Cosmax will use biotech to transform the water lily-derived strain into cosmetic ingredients.Opinions reform compliance

The NMPA’s Opinions outline a reform of China’s cosmetics regulations to support quality cosmetics development and strengthen China’s position as a global cosmetics leader.

According to the agency, China is “the world’s largest consumer market,” and the market’s size is driving regulatory demand for more efficient rules and consumer demand for more advanced products.

The reform will make it easier for companies to innovate through an “immediate review upon submission,” which would shorten lead times for cosmetics safety approvals.

Another significant reform outlined allows international brands to launch their products on the Chinese market without the previous barriers that first required proof of overseas sales. This makes it easier and faster for foreign companies to unveil products directly into the Chinese market.

The policy also encourages companies to develop new cosmetic ingredients in China to boost the country’s own scientific capabilities, instead of relying on imported ingredients.

Moreover, the Opinions focus on China’s aging population and changing consumer needs. The government encourages brands to develop products specifically for elderly consumers and supports research on skin aging and safety for the group it refers to as “the Silver economy.”

The document also promotes electronic labels, which will make ingredient and safety information easier for consumers to read and for companies to update, thereby helping brands meet rising expectations for transparency.

Strong safety and quality management are another major part of the reform. The NMPA plans a three-year campaign to improve factory quality systems and strengthen oversight of online sales.

The agency will upgrade its adverse reaction monitoring platform and use digital tools to identify risks faster.

Regulators will also introduce tiered supervision that focuses more resources on high-risk companies and products. For international and domestic brands, this means factories must meet stricter standards, but they may experience faster approvals if strong compliance is demonstrated.

The document also outlines long-term goals for global regulatory alignment. The NMPA will accelerate its process of creating national standards for testing, raw materials, and safety, while updating outdated rules. The agency will also work to reduce animal-testing requirements by expanding the use of alternative methods.

Manufacturing expansion

Clariant’s US$99.8 million investment aims to expand its Care Chemicals production facilities in Daya Bay, China. The company says the expanded sites will play a key role in its growth strategy in Asia.

The facilities are intended to “significantly” increase Clariant’s manufacturing capacity in China’s specialty chemicals sector, which the company describes as rapidly developing.

One of Clariant’s two Daya Bay plants is dedicated to producing mild surfactants for the beauty industry.The expansion boosts production in specialty chemicals for personal and home care. One of the two Daya Bay plants is dedicated to producing mild surfactants for the beauty industry and soil-release polymers for the home care sector, under the Texcare range.

“By bringing our innovation and expertise closer to customers, we’re better positioned to help drive their developments forward while addressing our customers’ sustainability targets and end-product performance needs,” Vang says.

Blossom of youth?

Cosmax discovered its novel anti-aging microbiome, CXCN-6, in water lily flowers. According to the South Korean company’s China subsidiary, the yeast strain has a strong ability to produce carotenoids and unsaturated fatty acids. Both of these components work to strengthen the skin’s antioxidants, thereby minimizing the look of aging caused by oxidative damage, such as fine lines, uneven tone, and a weakened skin barrier.

The company plans to use biotechnology to transform the lily-derived strain into cosmetic ingredients, similar to how it engineered a “next-generation” hyaluronic acid from peony-derived microbiomes.

Cosmax has registered CXCN-6 with the China General Microbial Species Conservation and Management Center to secure a unique identification number and protect its intellectual property.

The lily-derived strain adds to Cosmax China’s natural resource-based microbiome bank. The resource bank serves as an archive that stores, catalogs, and studies microorganisms, including bacteria, yeasts, and fungi.

Cosmax plans to expand its collection of naturally derived microbes from approximately 500 types to about 2,000 species by 2030.