A roster of successful brands already under their belts isn’t stopping China’s top beauty companies from looking for new ways to grow.
Players like Ushopal, Beauty Farm, and Joy Group are increasingly turning to strategic investments and acquisitions, especially among niche and premium brands, as a way of entering high-growth segments, establishing overseas distribution channels, enhancing supply chain control, and, ultimately, going head-to-head with the world’s biggest beauty names.
Globally, the beauty industry is moving toward fewer, yet more precise deals. In 2025, the BeautyMatter Deal Index tracked 263 beauty-related transactions, down 11.5% from 2024, yet broadly consistent with 2023 levels. In China, a 2025 KPMG report found that 19 domestic M&A deals involving Chinese beauty companies took place in the first three quarters of 2025—on par with 2024 in volume but more than double in transaction value.
No longer just the recipients of investment, Chinese beauty companies are reshaping the flow of global capital. Here’s a breakdown of the country’s leading beauty strategy and what recent deals say about the Chinese beauty market’s next phase of growth.
Portfolio: Owns or has equity in Payot, Juliette has a Gun, Argentum, Bonpoint; handles distribution for Chantecaille, Suqqu, RMK, Anastasia Beverly Hills, Phyto, Molton Brown.
M&A Playbook: Boasts a portfolio of 15 premium beauty brands, and expertise in building long-term brand equity, consumer engagement, and online–offline luxury experiences. Ushopal has rapidly evolved into a leading luxury beauty group. After backing fast-growing players like Japanese skincare label Bulk Homme and French niche perfume house Juliette has a Gun, Ushopal kicked off its acquisition era in 2022, with British luxury skincare brand Argentum. The deal aimed to accelerate Argentum’s growth among Asia’s Gen Z consumers.
Although Ushopal made its first domestic equity investment in Chinese fragrance label Documents in 2024, its core focus remains on European brands. In March 2025, iUshopal acquired Payot, a historic French skincare house, with the “ambition to create a new-generation luxury beauty group with an unparalleled global footprint,” the company said in a press release. It was a calculated move that enabled Ushopal to build on Payot’s century-long heritage, presence in over 70 countries, and extensive network of over 5,000 spa and professional beauty partners.
Market Impact: Ushopal helps premium beauty brands scale in China and internationally, leveraging its eight offices across Asia, Europe, and the Americas. While the group does not disclose its earnings, its impact is evident. For instance, before acquisition, Ushopal helped build Argentum into a top-three Gen Z luxury beauty brand in China, generating annual sales of $50 million. Looking ahead, William Lau, a partner at Ushopal, said the company plans to pursue one or two acquisitions a year.
Portfolio: Over 50 international brands under its “CP” (China Partner) cooperation model, including Dr. Ci:Labo, Neutrogena, Amouage, Kiko Milano, and Lumene.
M&A Playbook: As the overseas division of S’Young Group, S’Young International helps global beauty brands access the Chinese market through its comprehensive omnichannel services. Since 2018, the company has operated as a distributor, e-commerce partner, and online business manager for 14 Johnson & Johnson brands , before announcing its first equity acquisition in 2022 with Evidens de Beauté.
Though the French luxury skincare brand retains independent operations, S’Young scaled it from zero in China, repositioning it as a niche anti-aging brand for sensitive skin, securingcollaborations with celebrities and hit TV shows, and expanding its reach through premium offline channels like Galeries Lafayette. In 2024, S’Young acquired New York-based luxury skincare brand RéVive Skincare, cementing its shift into a high-end beauty brand management group.
Market Impact: By prioritizing sustainable growth systems, S’Young has enabled partner brands to recalibrate their product, channel, and content strategies for China. Following its partnership with S’Young, Evidens de Beauté achieved 600% growth on Douyin in 2022, along with a repurchase rate exceeding 40% and an average online transaction value of 2,000 yuan ($292). Over an eight-year collaboration, S’Young also helped Kiko Milano build out its single hero product into a broader “powder solution” franchise, with its core SKUs now consistently ranking among the top three on Tmall as of 2026.
Portfolio: Proya Cosmetics, Off&Relax, Hapsode, Correctors, Insbaha, Awaken Seeds, Uzero, Anya, Timage
M&A Playbook: After becoming the first Chinese beauty company to earn 10 billion yuan ($1.4 billion) in revenue in 2024, Proya Cosmetics is eyeing its next big goal: breaking into the world’s top 10 cosmetic groups over the next decade. At a 2025 shareholder meeting, brand Founder and Chairman, Hou Juncheng, revealed that the Shanghai-listed company is looking to acquire overseas assets in children’s skincare, men’s grooming, and luxury fragrances to fill its portfolio gaps.
Unlike its peers, Proya Cosmetics’ M&A footprint is quite modest. In 2019, it acquired professional makeup artist brand Timage, establishing a strategic foothold in the cosmetics sector and turning it into a core growth engine. Today, Timage is the second-largest brand in the group’s portfolio after skincare brand Proya Cosmetics, generating 1.25 billion yuan ($183 million) in FY 2025. In May 2026, Proya Cosmetics obtained a 51% stake in Flower Knows, bringing the Chinese makeup brand’s cross-border expertise and sizable Gen Z fanbase into the fold.
Market Impact: Despite its acquisition ambitions, Proya Cosmetics has yet to outline any detailed plans. For now, the company is focusing on developing its staple brands and investing in R&D, exemplified by the launch of its European Innovation Center in 2024, the 2026 openings of a dermatological clinical research laboratory, and a partnership with the ZJU‑VEMINSYN Bio‑AI Joint R&D Center to enhance ingredient innovation.
Portfolio: Beauty Farm, Palaispa, CellCare, Neology, Naturade, Siyanli
M&A Playbook: With its “dual beauty + dual wellness” business model, Shanghai-based Beauty Farm aims to cover customers’ comprehensive beauty and health needs for their entire life cycle. Key to accomplishing this is acquisitions, with 30 completed since 2014.
In 2024, Beauty Farm acquired a 70% equity interest in Naturade, a Chinese traditional beauty and health service provider, adding 80 beauty and wellness service stores, six aesthetic medical clinics, and two Chinese medicine outpatient clinics to its network. Last October, it went even bigger, acquiring a 100% equity interest in premium beauty service chain Siyanli for 1.25 billion yuan ($183 million)—describing it as “the largest 2025 M&A deal in China’s beauty service industry.”
Market Impact: Now, with over 734 stores and a direct store membership base exceeding 200,000, Beauty Farm recorded revenue of 3 billion yuan ($439 million), up 16.7% year over year (YoY), and adjusted net profit of 380 million yuan ($55.6 million), up 41%, in 2025. A recent partnership will see RQ Pyology, Shiseido’s first high-end tech skincare brand developed specifically for Chinese consumers, expand from professional medical aesthetics settings to Beauty Farm’s core stores nationwide, further positioning the group as a heavyweight in the high-end beauty and wellness ecosystem.
Portfolio: Judydoll, Joocyee, Biophyto Genesis, René Furterer (China business), Foltène
M&A Playbook: The parent company of Gen Z-favorite Judydoll is aggressively diversifying its portfolio through partnerships and acquisitions. In 2025 alone, the Shanghai-based group acquired Chinese dermatological skincare brand Biophyto Genesis and Italian haircare Foltène (including its brand assets, global distribution network, supply chain system, and research lab), capitalizing on China’s growing demand for both science-backed skincare and scalp and hair health solutions.
This comes after Joy Group signed an exclusive long-term partnership with French pharmaceutical group Pierre Fabre in 2024, taking charge of all operations of haircare brand René Furterer in China. Together, these moves round out its “multibrand, multicategory, and international” strategy, complementing its leadership in color cosmetics with growing footprints in haircare and dermatological skincare.
Market Impact: In fiscal 2025, Joy Group reported that total revenue grew 22% to surpass $620 million. Momentum was led by Judydoll, which ranked #1 in sales volume among makeup brands in China for a third consecutive year, while René Furterer posted revenue growth of over 30%. Although no figures were disclosed for its new acquisitions, CEO Allan Liu stated that, with its strong multibrand portfolio and accelerating globalization, Joy Group is “well positioned for long-term, sustainable growth.”
Portfolio: Perfect Diary, Little Ondine, Pink Bear, Galénic, Dr. Wu (mainland China business), Eve Lom, EANTiM
M&A Playbook: After years of revenue decline, Yatsen Holding is on a mission to transform itself into a science-backed, skincare-focused, profit-generating powerhouse. In addition to developing skincare-infused makeup for Perfect Diary, phasing out weaker brands (Abby’s Choice), and investing over $80 million in R&D, the company is using strategic acquisitions to pivot revenue streams toward skincare and premium brands.
After acquiring color cosmetics label Little Ondine in 2019—marking its transition into a multibrand portfolio—Yatsen Holding acquired French premium skincare brand Galénic in 2020, establishing a long-term R&D collaboration with Pierre Fabre. Also in 2020, it acquired the mainland China business of Taiwan-based clinical skincare brand Dr. Wu, relaunching it with a simplified product lineup and a focus on effective solutions for acne-prone skin. In 2021, the group went on to acquire London-based prestige skincare brand Eve Lom, benefiting from its loyal following across North America, Europe, and Asia.
Market Impact: For fiscal 2025, Yatsen Holding reported that total net revenues increased by 26.7% to 4.30 billion yuan ($614.6 million), primarily driven by a 63.5% YoY increase in net revenues from skincare brands. In March 2026, the company entered into an agreement to raise approximately $120 million through a private placement of convertible senior notes and warrants, expected to support initiatives like overseas expansion and M&As. Looking ahead, it plans to differentiate itself by betting big on biotech, neuroscience, and ingredient innovation, shifting firmly from a trend-savvy startup to a science-driven leader.
