From October 18-19, the 2024 China Association of Fragrance, Flavor, and Cosmetics Industries(CAFFCI) Annual Meeting and Expo (CAME) was grandly held in Nanjing, Jiangsu province under the theme "Creating, Winning, Thriving Together." The exhibition featured a 15,000㎡space, bringing together 138 premium exhibitors. Zhejiang Zhongmao Enterprise Service Co., Ltd. (ZMUni Compliance Centre) was honored to be one of the participating exhibitors, where we showcased our enthusiastic service approach and professional capabilities.
In addition to exhibiting, ZMUni actively participated in forums at the CAME conference, gaining valuable insights into the latest regulations and industry trends, both in China and globally. The event featured 45 forums and over 160 guest speakers, addressing topics such as macroeconomic trends, entrepreneurial insights, cosmetic ingredient innovation, international cosmetics regulations, marketing channels, and packaging innovation.
Next, ZMUni will share key takeaways and inspirations gathered from this year's CAME.
Is the Chinese Cosmetics Industry Thriving?
“Undoubtedly, everyone hopes that the industry they are in is experiencing rapid or steady growth.”
According to data from CAFFCI, China's cosmetics market has surpassed 1 trillion RMB, making it the largest cosmetics consumer market in the world.
“However, it is undeniable that, like the overall economic environment, the growth of the cosmetics market has shown signs of slowing down, entering a period of industry adjustment.”
Recent data from China’s National Bureau of Statistics indicates that from January to September, the total retail sales of cosmetics in China reached 306.9 billion RMB, representing a year-on-year decline of 1%. This marks four consecutive months of decline since June. Furthermore, data released by the General Administration of Customs this year shows a continuous decrease in both the value and volume of cosmetics imports into the country.
How to Navigate the Current Volatile Landscape?
"Business positioning: Reshape growth strategies and competitive advantages while prioritizing people and pursuing compliant development."
For example, Bloomage Biotech, one of the leading ingredient and cosmetic enterprises in China, has strategically positioned itself by focusing on the core advantages of "synthetic biology + regenerative medicine." By emphasizing innovation in cosmetic ingredients, the company not only strengthens its competitive edge but also aligns with the evolving demands of the market.
Changes and Trends in Global Cosmetic Regulations
"Responding to market demands by actively promoting the greening and sustainability of products and ingredients."
EU
According to Gerald Renner, Director of Technical Regulatory Affairs at the European Cosmetics Association (CE), recent revisions to the EU Cosmetic Products Regulation (CPR) over the past year have focused on:
Regulatory processes for carcinogenic, mutagenic, or toxic for reproduction(CMR substances)
Risk assessment methods for endocrine disruptors
Risk assessment for mixtures
Updated definitions for nanomaterials
Follow-up arrangements for SCCS
Introduction of digital labeling
Ingredients currently under evaluation by the SCCS include:
Fragrance ingredients: Acetylated vetiver oil in spray products (inhalation)
Hair dye ingredients: HC Red 18, HC Yellow 16
UV filters: Additional coatings for nano-titanium dioxide; Diethylamino hydroxybenzoyl hexyl benzophenone (possible impurity)
Prostaglandin analogues
U.S.
Natalie Obermann, Vice President of Global Strategy at the Personal Care Products Council (PCPC) in the U.S., noted that ingredient trends significantly impact the U.S. cosmetic market. As consumers increasingly prioritize skin health, there has been notable growth in the dermocosmetics and sunscreen categories. Moreover, there is a rising demand for natural and organic products, greater ingredient transparency, and sustainable options. A major regulatory change this year is the implementation of the Modernization of Cosmetics Regulation Act (MoCRA), which mandates factory and facility registration, as well as product listing. Companies are also required to update the contact information for reporting adverse events on their labels by December 29.
UK
During the conference, Nicolas Shaw Nunez, Regulatory Affairs Director at the UK's Cosmetic, Toiletry and Perfumery Association (CTPA), provided an overview of the UK cosmetics industry and its regulatory framework. He highlighted key differences between UK and EU cosmetic regulations lie in the changes to responsible parties (within Great Britain or Northern Ireland), cosmetic notification (SCPN), and the management of cosmetic ingredients. The UK has established a whitelist for permissible cosmetic ingredients, including colorants, preservatives, and sunscreens, as well as a blacklist for prohibited and restricted substances.
Furthermore, the Product Regulation and Metrology Bill 2024 is set to take effect in 2025, aiming to strengthen enforcement and proactive legislation, particularly concerning online sales channels. Another key development is the introduction of the "Navigating Green Claims" guidelines, which are designed to ensure that companies' environmental claims are truthful and not misleading, thereby promoting greater transparency in the market. This underscores the UK's regulatory focus on sustainability and environmental protection.
Synthetic Biology: The Future of Cosmetics?
"Leveraging synthetic biology to manufacture key ingredients is emerging as a major development trend."
At the Ingredient Innovation Academy Forum on the morning of the 19th, Professor Chen Jian, a fellow of the Chinese Academy of Engineering and a professor at Jiangnan University, highlighted the role of synthetic biology in accelerating innovation. He noted that synthetic biology is now being used to produce a broad spectrum of cosmetic ingredients, including proteins, amino acids, carbohydrates, esters, terpenes, vitamins, phenylpropanoids, and polyketones.
Chinese companies are making significant strides in this field, with successful production of ingredients like ergothioneine, ectoine, recombinant collagen, and squalane. From both an industry and investment perspective, the trend toward using synthetic biology to develop essential cosmetic ingredients is gaining momentum, pointing to a bright future for the cosmetics sector.
How to Define Successful Cosmetics?
At the end, we'd like to share some insights from Professor Zhibin Zhang—Academician of the European Academy, Fellow of the Royal Academy of Engineering, and Co-Dean of the China Institute at the University of Birmingham—on what defines "successful cosmetics," as presented in his keynote speech.
The cosmetics industry is highly multidisciplinary, requiring collaboration across various fields to develop products that are safe, effective, and market-ready. When developing cosmetic products, companies should take a holistic approach, considering the following key factors:
Functionality and Efficacy: Does the product deliver the intended sensory benefits, such as appearance, texture, and fragrance?
Regulatory Compliance: Does it meet all necessary safety and regulatory standards?
Affordability: Is the product priced competitively and accessible to consumers?
Supply Chain Stability: Are the raw materials readily available to ensure consistent production?
Sustainability: Does the product align with environmentally sustainable practices?
* As a leading provider of cosmetic compliance services in China, ZMUni Compliance Centre also delves deeply into the industry to stay informed about its development trends.
If you have further inquires regarding the dynamics of the Chinese cosmetic market or market access, please feel free to contact Chris Wang, our head of Operations.
