Published by ChinaMNC · Kecheng

Zhejiang's Cosmetics Sector: A Practical Guide for Foreign Founders

Zhejiang province is strengthening its cosmetics industry with a coordinated regional layout, rising retail and export figures, and new regulatory reforms effective November 15. This guide outlines key facts for foreign founders considering company registration or operations in China's beauty market.

Zhejiang's Cosmetics Industry: Key Facts for Foreign Founders

Foreign founders exploring China's beauty market should note that Zhejiang province is actively building its cosmetics industry competitiveness. According to a recent government media briefing, the province reported strong growth in both domestic retail and exports for cosmetics in the first half of the year. This summary highlights the facts and regulatory changes most relevant to foreign entrepreneurs planning to register or operate a company in China.

Market Performance

In the first half of the year, cosmetics retail sales by units above designated size in Zhejiang reached 28.7 billion yuan, up 24.7% year-on-year. Export value totaled 8.01 billion yuan, a 22% increase compared to the same period last year. These figures indicate sustained momentum in both domestic consumption and international trade for Zhejiang-made cosmetics.

Regional Industry Layout

Zhejiang has developed a coordinated regional approach to its cosmetics industry, with each city playing a specific role:

• Hangzhou: headquarters for R&D, sales, and brand management
• Huzhou: demonstration window for "Quality Zhejiang Cosmetics"
• Jinhua: global manufacturing base for color cosmetics
• Ningbo and Shaoxing: bases for imported cosmetics and packaging materials
• Quzhou, Lishui, and Wenzhou: cultivation bases for eco-friendly cosmetics

For foreign founders, this layout means that supply chain, R&D, and branding resources are distributed across the province, offering options depending on the nature of the business.

Regulatory Oversight and Quality

The Zhejiang Provincial Medical Products Administration has implemented a program to improve both the capacity and quality of ordinary cosmetics filing. In 2025, the pass rate for provincial-level cosmetic supervision and sampling reached 99.79%. This high compliance rate suggests a relatively predictable regulatory environment for products that meet standards.

New Policy Measures

In October, Zhejiang released "Several Measures on Deepening Cosmetics Regulatory Reform to Promote High-Quality Industrial Development." The document introduces 20 measures across four areas: reform and quality improvement, regulatory efficiency, industrial capacity enhancement, and support upgrading. The measures will take effect on November 15. According to the announcement, these steps are intended to help companies improve innovation efficiency, reduce compliance costs, and expand development space.

Foreign founders should pay attention to these measures as they may affect product filing, market entry, and operational requirements for cosmetics businesses in Zhejiang.

Practical Implications for Foreign Founders

When considering company registration or operations in China's cosmetics sector, foreign entrepreneurs can use these facts to assess the business environment:

• Market growth: The double-digit increases in retail and exports indicate a dynamic market with opportunities in both domestic sales and export-oriented manufacturing.
• Regional specialization: The distinct roles of cities allow founders to choose locations that align with their business model—whether focusing on R&D, manufacturing, or brand development.
• Regulatory compliance: The high pass rate for quality sampling suggests that adhering to standards is feasible, but it also underscores the importance of understanding local filing requirements.
• Policy support: The new measures aim to streamline regulation and support industry growth, potentially easing some compliance burdens for compliant companies.

Next Steps

Foreign founders interested in entering China's cosmetics market should consider these developments as part of their planning. While the province's initiatives create a supportive environment, specific requirements for company registration, product filing, and operations remain subject to Chinese laws and regulations. Engaging with local authorities or professional advisors is recommended to ensure compliance.

For assistance with company registration and ongoing operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.