Shenwan Hongyuan Group Co., Ltd. has released a research report indicating that China's perfume market is expected to reach approximately RMB 30 billion in 2025, with projections to surpass RMB 51.5 billion by 2029, representing a compound annual growth rate of around 14%. This signals vast room for market development. While international players continue to hold a dominant position in the competitive landscape, domestic brands are accelerating their breakthrough efforts by leveraging content-driven e-commerce platforms. The research suggests that domestic beauty conglomerates are increasingly focusing on the fragrance sector, and recommends paying attention to listed companies with differentiated strategies, including Mao Geping Cosmetics Co., Ltd. (01318), Ruychen (003010.SZ), and Shanghai Jahwa United Co., Ltd. (600315.SH).
Low penetration and high growth define China's perfume market, with industry scale and consumption gaps unlocking long-term potential
The size of China's perfume market is estimated at around RMB 30 billion for 2025, with expectations to exceed RMB 51.5 billion by 2029, growing at a compound annual rate of roughly 14%. Currently, domestic perfume penetration stands at only about 5%. In 2023, per capita perfume consumption in China was just RMB 16, compared to RMB 47 in Japan and RMB 423 in the United States, highlighting a significant gap and substantial room for growth. In 2025, China's perfume imports reached USD 1.21 billion, a year-over-year increase of 21%, reflecting sustained demand for high-end fragrances. Additionally, with China's emotional economy market reaching RMB 2.31 trillion in 2024, fragrance consumption is evolving from basic scenting functions to emotional regulation and ritual creation, providing ample momentum for long-term industry growth.
Global giants' performance confirms the fragrance sector's strong momentum, with perfumes remaining the core growth driver for major groups
In the first half of 2026, the global beauty market grew approximately 4.5% year-over-year (according to L'Oreal's estimates), with fragrances and hair care maintaining robust performance. L'Oreal's high-end division generated EUR 8.0 billion in revenue during 26H1, accounting for 33.6% of total sales, with reported growth of 4.4%. Fragrances continue to be the most critical growth engine, sustaining double-digit expansion. The Estee Lauder Companies reported a 5.4% year-over-year revenue increase for 26H1, with mainland China leading growth in double digits. The fragrance category maintained its high-growth trajectory, with perfume revenue share rising from 12% to 17% in FY2025.
International brands still lead the competitive landscape, while domestic players leverage content e-commerce to accelerate their rise
In 2025, the top 15 brands in China's perfume market by sales remain predominantly international powerhouses. Dior, Chanel, and Jo Malone London hold the top three positions with market shares of 14.3%, 14.2%, and 7.2%, respectively. However, local brands are carving out their own paths through content-based e-commerce channels. Divergent consumer preferences across different city tiers are creating differentiated development opportunities for domestic brands.
Rising domestic fragrance pioneers like To Summer and DOCUMENTS are emerging as benchmark examples of high-end localization
To Summer enters the premium market segment with oriental botanical scents and traditional Chinese aesthetics, and received a minority equity investment from L'Oreal in January 2024. The brand achieved RMB 143 million in sales through its mini-program channel in 2021, with a repurchase rate of approximately 60%. Between August 2023 and July 2024, Tmall sales exceeded RMB 100 million, growing 49% year-over-year. In February 2026, its fragrance and aromatherapy category sales surged 211% year-over-year. DOCUMENTS, positioning itself as a high-end oriental niche perfume house, has established nearly 50 stores nationwide, including presence in premium retail venues such as SKP and Sephora, building brand barriers through distinctive style and strong recognition. Together with a diverse range of domestic brands focusing on native fragrance materials, national cultural memories, and seasonal traditions, these pioneers are forming a multi-layered domestic fragrance ecosystem and becoming a significant force in the import substitution trend.
Risk warnings: Consumption recovery may fall short of expectations, new product launches may underperform, raw material supply and cost fluctuations, stricter industry regulations, and intensifying competitive dynamics.