Core Insights - The cosmetics raw materials industry in China is transitioning from "high-speed growth" to "high-quality development," with a projected total transaction value of 1,104.245 billion yuan by 2025, reflecting a year-on-year growth of 2.83% [6][7] - The global cosmetics raw materials market is steadily growing, expected to reach 359.2 billion yuan by 2024, with the Asia-Pacific region, particularly China, being the core growth driver [8][9] - The Chinese cosmetics raw materials market is anticipated to grow rapidly, reaching approximately 65.004 billion yuan in 2024 and 71.667 billion yuan by 2026, with a compound annual growth rate (CAGR) of 5% from 2024 to 2026 [8][9] Industry Overview - Cosmetics raw materials are essential components that determine the quality, stability, safety, and core efficacy of cosmetic products, encompassing various chemical, natural, and biological substances [2][3] - The industry is governed by strict regulations, ensuring that all raw materials used in cosmetics are safe and compliant with national standards [2] Market Segmentation - Cosmetics raw materials can be categorized into two main types: base materials (such as oils, powders, and surfactants) and functional materials (including moisturizing, whitening, and anti-aging agents) [3][4] - The market is further segmented by regulatory status into used and new raw materials, and by source into natural, synthetic, and biological materials [3] Industry Chain Analysis - The cosmetics raw materials industry chain consists of three segments: upstream raw material supply, midstream research and production, and downstream brand and application [5][6] - Upstream focuses on the supply of basic raw materials, while midstream involves the research and production of specialized raw materials, and downstream includes brand manufacturers and distribution channels [5][6] Current Market Dynamics - The Chinese cosmetics industry is experiencing a shift towards high-quality development, supported by regulatory frameworks that enhance safety and compliance [6] - The market is characterized by strong resilience, with a projected total transaction value exceeding 1.1 trillion yuan by 2025 [6][7] Growth Projections - The global cosmetics raw materials market is expected to grow at a CAGR of approximately 2.64% from 2024 to 2026, reaching 378.4 billion yuan [8] - In China, the active ingredients market is projected to grow from 14.8 billion yuan in 2024 to 16.26 billion yuan by 2026, with a CAGR of 4.82% [9][10] Competitive Landscape - The industry is characterized by a multi-tiered competitive landscape, with international giants dominating the high-end market while domestic companies rapidly rise [11] - Leading domestic firms like Huaxi Biological and Furuida are making significant strides in innovation and market share, particularly in the fields of biological fermentation and plant extraction [11] Future Trends - The industry is expected to focus on technological innovation, with synthetic biology emerging as a key area for breakthroughs in high-end active ingredient production [13][14] - Domestic companies are anticipated to deepen their market presence in high-end raw materials, leveraging local resources and innovation to challenge international competitors [15] - Regulatory compliance and sustainability will drive the industry towards high-quality development, emphasizing low-carbon and biodegradable materials [16]

Investment Rating - The report indicates a positive outlook for the cosmetics raw materials industry, highlighting the stable growth of the downstream cosmetics sector and the leading positions of companies like Weiqi Technology and Jiakai Biological [1]. Core Insights - The cosmetics raw materials industry in China is projected to grow from CNY 1,147.80 billion in 2019 to CNY 1,603.90 billion by 2024, with a compound annual growth rate (CAGR) of 6.9% [2][12]. - The peptide active ingredients market is expected to grow from CNY 11.2 billion in 2019 to CNY 21.7 billion by 2024, achieving a CAGR of 14.1% [2][16]. - The plant extract raw materials market is anticipated to increase from CNY 204.5 billion in 2019 to CNY 270.2 billion by 2024, with a CAGR of 6.5% [2][20]. - Weiqi Technology holds a 6.6% market share in the peptide raw materials sector, ranking first in China [2][25]. - Jiakai Biological has established a leading position in the plant extract efficacy raw materials field, with significant revenue growth [2][33]. Summary by Sections 1. Growth of the Cosmetics Raw Materials Industry - The cosmetics raw materials market in China is expected to reach CNY 1,604 billion by 2024, driven by the stable growth of the cosmetics industry [2][5]. - The global cosmetics market is projected to reach USD 550.3 billion in 2024, with China being the largest market [5][8]. 2. Performance of Weiqi Technology and Jiakai Biological - Weiqi Technology's revenue for the first half of 2025 is CNY 132 million, a year-on-year increase of 34.6%, with a net profit of CNY 40.2 million, up 68.76% [2][30]. - Jiakai Biological's revenue for the first three quarters of 2025 is CNY 195 million, reflecting a year-on-year growth of 7.91%, with a net profit of CNY 47.3 million, up 16.91% [2][37]. 3. Market Trends and Valuation - The median price-to-earnings (P/E) ratio for the North Exchange consumer service sector increased to 50.1X, indicating a slight upward trend [2][50]. - The total market capitalization of consumer service companies on the North Exchange rose from CNY 1,096.29 billion to CNY 1,152.85 billion [2][43]. 4. Competitive Landscape - The cosmetics raw materials industry is characterized by a low concentration, with many small-scale companies primarily serving domestic mid-to-low-end markets [2][12]. - The demand for active ingredients, particularly peptides, is growing rapidly, driven by consumer preferences for effective skincare products [2][15].