Orient Securities Company Limited highlights that cooling cosmetics have become a summer necessity, with demand surging due to persistent global warming. From January to May 2026, online sales of related cosmetics grew over 45% year-on-year, with May alone seeing a staggering 81.3% increase in GMV. The report indicates that cooling technology has evolved from simple sensory stimulation to a "physical + chemical" compound approach, enabling domestic brands to accelerate their market breakthrough using "quantified data and multi-functional formulas." As extreme weather becomes more frequent, beauty and personal care companies with refined scenario insights and gentle formula development capabilities are positioned for strong growth. Orient Securities Company Limited outlines the following key points.
Overall Trend: Normalized High Temperatures Drive Demand Surge, Cooling Cosmetics Move Toward "All-Scenario, Multi-Effect Integration"
Due to ongoing global warming, China's average temperature in 2025 hit a historical high since 1901, with extreme heat events continuing into 2026. This climate trend has triggered a boom in cooling cosmetics. From January to May 2026, online sales of cooling cosmetics grew over 45% year-on-year, with May recording an 81.3% surge in GMV. Cooling products are now expanding beyond traditional sunscreens and body sprays into base makeup, serums, eye creams, and more. Creams, masks, and personal care items form the three main new product categories this year. The industry is characterized by five key trends: quantifiable sensations, gentler technologies, synergistic effects, scenario-based categories, and emotional experiences, all aimed at meeting consumers' comprehensive "thermal management" needs for summer skin.
Technology Evolution: From Single Sensory Stimulation to "Physical+Chemical" Compound, Upgrading Formulations and Delivery Systems
Cooling technology has moved beyond early single-ingredient solutions into a new era of physical-chemical compound formulations. Physical cooling (achieving actual temperature reduction, now in its fourth generation) has evolved from early natural herbs to single polyol heat-absorbing systems like erythritol. It then advanced to the third generation, utilizing hydrogels or microcapsule slow-release carriers, and now enters the fourth generation with physical-chemical compounds. The core mechanism involves dissolving and absorbing heat with water evaporation to genuinely lower skin temperature (measured cooling of about 5°C), offering high gentleness. According to GII data, the global cooling polyol market reached $562.6 billion in 2025, expected to grow to $928.7 billion by 2032. Chemical cooling (targeting receptors, now in its third generation) works by activating the TRPM8 cold-sensing receptors on the skin, sending a "cold" signal to the brain. Technology has progressed from natural menthol (strong irritation, high volatility) to derivatives like menthyl lactate (reducing burning sensation), and now to third-generation synthetic cooling agents like WS-3 and WS-23, offering higher intensity, longer duration, and eliminating odor and burning. International raw material suppliers are even using AI to develop new TRPM8 modulators free of menthol.
Competitive Landscape: Precise Targeting of Niche Scenarios, Domestic Brands Accelerate with "Quantified Data and Multi-Functional Formulas"
In this year's cooling market, domestic brands like Fuerjia, Liusimu, and Runben have achieved significant growth through extreme scenario specialization. Brand competition is no longer limited to vague "cooling" concepts but is deeply tied to pain points. For example, Fuerjia launched a Centella Ice Cream Mask for post-sun repair of sensitive skin. Runben extended its mosquito-repellent business into "cooling" scenarios with a children's soothing ice cream. Shanghai Jahwa (Six God, Qichu) further refined its cooling matrix with portable roll-on products and children's repair creams. Leading brands are also upgrading "vague skin feel" to "quantifiable metrics" (e.g., "cools 3°C in 10 seconds" or "cools 6.7°C in 5 minutes") and successfully integrating cooling systems with base functions like redness reduction, stabilization, and barrier repair, thereby building core product competitiveness.
Investment Advice: Cooling Cosmetics Enter a "Real Cooling + Multi-Effect Synergy" Dividend Period, Benefiting Both Upstream Raw Materials and Downstream Domestic Brands
With global warming and frequent extreme summer weather, cooling cosmetics are transitioning from a single sensory experience to a "real cooling + multi-effect synergy" dividend period. The report suggests that beauty and personal care companies with refined scenario insights and gentle formula R&D capabilities will see certain growth. Upstream, raw material and contract manufacturing companies with expertise in new synthetic cooling agents, composite physical cooling matrices, and advanced delivery systems will benefit significantly. Downstream, domestic brands that can precisely target niche scenarios (e.g., infant protection, sensitive skin repair) and establish a closed loop of "physical cooling + functional repair" will be the first to capture premium returns from the summer "heat economy."
Risk Warning
End demand is subject to seasonal and weather fluctuations; industry competition may intensify with risk of homogenization; new product R&D and technology iteration may fall short of expectations.