China's oil skincare market, projected to reach 10 billion yuan (about $1.4 billion) by 2026, is undergoing a structural shift from traditional pure oil formulations to water-oil dual formulas. This change, driven by consumer demand for lighter textures and multifunctional benefits, presents new sourcing opportunities for overseas buyers of aesthetic and skincare products.
Market signal
Once a niche segment for dry skin, oil skincare has become mainstream in China as awareness of skin barrier benefits grows. However, pure oil products face limitations: they are difficult to formulate with stable active ingredients and feel heavy or sticky, especially for oily and combination skin types. Consumers now seek products that resolve inner dryness while offering fast absorption and a non-greasy finish.
Technology shift: Water-oil dual formula
To meet these demands, brands are adopting biomimetic water-oil dual formulas that mimic the natural sebum-lipid structure of healthy skin. These formulas separate a water phase (containing water-soluble actives like hyaluronic acid, collagen, peptides, and niacinamide) from an oil phase (with oil-soluble actives such as plant oils, squalane, and vitamin E). Users shake the product before application, ensuring ingredient stability and delivering moisture first, followed by a thin, uniform oil protective film.
Local brands leading the change
Chinese domestic brands like Kefumei (可复美) are driving this trend with dual-phase essences that reduce the greasiness of traditional oils and expand the target audience to include combination skin types. The market is evolving from simple moisturizing claims to multifunctional benefits, including barrier repair, firming, antioxidant protection, and brightening.
What buyers should watch
For overseas importers and distributors, the shift signals growing demand for advanced formulation technologies that balance water and oil phases. Products with high ingredient stability, enhanced skin absorption, and proven long-term efficacy are becoming key competitive differentiators. Sourcing opportunities may include dual-phase delivery systems, biomimetic emulsifiers, and stable active ingredient combinations that cater to China's sophisticated skincare market.
Regulatory and channel signals
As the Chinese oil skincare market enters a second generation focused on functional serums, regulatory compliance for ingredient claims and efficacy testing will be critical. Buyers should monitor local certification requirements and ensure that product formulations meet China's cosmetic regulations, particularly for imported goods. The trend also highlights the importance of partnering with manufacturers skilled in dual-phase formulation technology.
Source: Read the original report | Published: June 09, 2026