Proya Cosmetics made a strong impression in 2024! The company, founded about twenty years ago, crossed the symbolic threshold of 10 billion yuan in revenue (10.78 billion yuan exactly, corresponding to approximately 1.4 billion dollars). More importantly, with double-digit growth (21.4%) for the seventh consecutive year, it has largely outperformed global giants like Estée Lauder or L’Oréal, which are struggling in the Chinese market.
"This result illustrates consumer confidence and the vitality of our brands," emphasizes the founder and president of the company, Juncheng Hou, to Premium Beauty News. "We meet consumer needs with a comprehensive range of products across all categories, from skincare to hair care."
Reflecting a unique feature of the Chinese market — where e-commerce dominates cosmetics sales — Proya Cosmetics generates 95% of its revenue online.
"Double 10 strategy"
Mr. Hou’s ambition is now to bring Proya Cosmetics into the top ten global cosmetics giants within ten years. The project, dubbed the "double 10 strategy," involves rapid internationalization and solid investments in innovation.
"We opened an innovation center in Paris in 2024 to strengthen our research and development partnerships and better understand the expectations of European markets. Southeast Asia and the Middle East are also priority regions," details the president of Proya Cosmetics.
In Europe, the focus is on building scientific and technical capabilities. "Our immediate goal is not the commercialization of our products, but strengthening our innovation platform," explains Antoine Deconinck, the Managing director of Proya Europe. "We are investing in academic partnerships and collaborations with global leaders such as BASF, Croda, or dsm-firmenich."
According to its annual report, the company dedicated US29 million to R&D in 2024. A significant investment that translates into a portfolio of 229 patents and active participation in the IFSCC Congress in Cannes in 2025, with the presentation of 13 scientific posters and an oral presentation on how Proya Cosmetics uses AI to accelerate the discovery of innovative ingredients capable of improving mitochondrial function and fighting signs of skin aging.
External growth and diversification
To accelerate its growth, Proya Cosmetics is focusing on international expansion, particularly in Southeast Asia, viewed as a natural extension of its success in China, and in Europe. "Current trade tensions are prompting us to prioritize Europe over other markets because it is more open and offers valuable learning opportunities," says Hou.
The company is also considering acquisitions, as well as distribution agreements to introduce foreign brands that are still absent from the local market in China. "Our portfolio must reflect the diversity of consumer needs internationally," emphasizes Hou.
While e-commerce remains the primary channel in China, the company is also expanding its presence in physical stores in major cities to reinforce the premium image of its brands. Outside of China, “each market has its own specificities,” the leader acknowledges, noting that the distribution strategy will be adapted to local consumer habits.
On the financial front, Proya is preparing for an IPO in Hong Kong to complement its current listing in Shanghai. "This is an essential step to strengthen our international visibility and affirm our image as a global company. Hong Kong is a gateway between mainland China and the rest of the world," explains Juncheng Hou.
China as an international springboard
Although the Chinese cosmetics market has severely slowed down – growth is now around 3% per year compared to more than 15% before the pandemic – it retains considerable potential. "A Chinese consumer spends an average of 50 euros per year on cosmetics, compared to 200 to 300 euros in Europe. The growth potential remains immense," observes the Head of Proya.
The company, which is gaining market share compared to large international groups, intends to use its domestic market as a powerful lever for internationalization.
"European, American, Japanese, and Korean cosmetic brands have dominated the Chinese and global markets until now. Today, Chinese beauty is gaining notoriety, particularly thanks to the internet. Competition is severe, especially in the Chinese market. Our growth proves that we have the means to meet the expectations of international consumers," concludes Mr. Hou.
