Synthetic Biology Reshapes China's $9.2 Billion Cosmetic Ingredients Chain: Domestic Brands Seize Breakthrough Opportunity

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As consumers carefully select products at beauty counters, they may not realize that behind the seemingly ordinary skincare ingredients in those bottles and jars, a profound transformation shaping the future of the industry is brewing.

Not long ago,2025China Fragrance, Flavor and Cosmetics Industry Annual Conference (2025CAME) At the conference, Chen Jian, a professor at Jiangnan University and an academician of the Chinese Academy of Engineering, presented a groundbreaking perspective: synthetic biology is helping to usher the cosmetics industry into a new era.This is not merely a technical upgrade, but an industry paradigm revolution centered on “building matter to acquire knowledge and building matter for practical application,” which will fundamentally transform the production methods and industrial ecosystem of cosmetic ingredients.

Chen Jian disclosed a set of data:2024 Annual output value of cosmetic raw materials in China is approximately660100 million yuan,However, high-value-added active ingredients account for only10%，The lion’s share of profits has long been held by foreign companies such as BASF and DSM. However, if constructed through synthetic biology,“Cell factories” will significantly increase the high value-added active ingredients in China's cosmetic raw materials, as well as the overall gross profit margin of the industry, while reducing carbon emissions.

Behind this lies a restructuring of industrial value driven by technological breakthroughs, marking the Chinese cosmetics industry’s transition from"Low-Level Imitation"Towards"Independent Innovation"a key opportunity.

For consumers, "bio-cosmetics" (skincare products produced based on biotechnology)Perhaps still an unfamiliar concept,But the changes it brings are just around the corner:Once reliant on extracts from deep-sea shark livers and heavily criticized for ecological controversies,Squalane, now through yeast fermentation 48 high-purity mass production can be achieved within hours; the market price is as high as 4-5 Ten Thousand Yuan / kg, traditional extraction requires 12 Icariin from Epimedium, produced via biosynthetic technology, with a purity of 98% and possesses the potential for tonne-scale scale-up; in the future, the moisturizing, whitening, and anti-wrinkle ingredients in a single bottle of essence may not even require 20 Plant extracts,3 A single synthetic microbial consortium can achieve multi-effect synergy. These are not science fiction scenarios, but rather “bio-cosmetics”A Vivid Footnote on the Journey from Laboratory to Market.

Yan Jiangying, Chairman of the China Fragrance and Cosmetics Association and holder of a Medical Doctorate, emphasized in his address at the aforementioned annual conference that “raw material innovation is the fundamental driving force for the high-quality development of the cosmetics industry.” He further pointed out that China’s cosmetics industry has transitioned from “scale expansion” to “value enhancement,” and upgraded from “product competition” to “systemic competition.”Indeed, raw material innovation serves as the core strategic pivot in this transformation process.

Policy tailwinds have also injected strong momentum into the industry’s development. Following Shanghai and Beijing’s pioneering moves, local governments in Jiangsu, Guangdong, Shandong, and other regions have successively included “synthetic biology-derived cosmetics” in their pilot programs for future industries, safeguarding the growth of this emerging field. A new industrial chain is gradually taking shape, following the model of “cell factory–fermentation–purification–product.” On this promising new track, can domestic brands seize this opportunity to overcome the long-standing bottleneck of critical raw materials that has plagued the industry, achieving a leapfrog development from following to running alongside, and ultimately leading the pack?

Chen Jian pointed out that biomanufacturing holds broad application prospects in fields such as biopharmaceuticals and cosmetics, transforming the methods and pathways of material production while expanding its boundaries.

The focus of biomanufacturing for cosmetic ingredients is on active compounds, which are widely used in functional skincare products such as moisturizers, whitening agents, exfoliants, and anti-aging treatments. The core technology underlying this approach is synthetic biology. Synthetic biology has brought unprecedented scientific opportunities to the cosmetics industry.It can rapidly manufacture known chemicals, produce chemicals that are currently known but not readily accessible, and create chemicals with novel properties.

Traditional cosmetic ingredients are primarily derived from plants and animals or produced through chemical synthesis. Many of these ingredients possess complex molecular structures with numerous chiral groups and exhibit poor stability, leading to various production challenges. Specifically, plant-based extraction faces issues such as low active ingredient content, high costs, susceptibility to seasonal and climatic variations, and residues of pesticides and heavy metals. Animal-derived extraction is hindered by difficulties in isolating single components, high costs, inconsistent batch quality, and the potential presence of viruses and pathogens. Chemical synthesis, on the other hand, is characterized by lengthy synthetic pathways, complex reaction conditions, low product yields, and significant environmental pollution.

“Biomanufacturing offers significant advantages in the production of cosmetic ingredients. Compared to its applications in other sectors such as food, consumers in the cosmetics sector, due toThe diversity, personalization, natural orientation, and environmental friendliness of biomanufacturing make it more readily acceptable.“Moreover, since the relevant raw materials are present in many human bodies, they offer a strong safety profile and possess the unique advantage of being designable, modifiable, and combinable according to specific application scenarios,” explained Chen Jian.

Currently, there are numerous examples of biosynthesis and synthetic biology applications in the production of cosmetic ingredients. For instance, artemisinin, an antimalarial drug discovered in the traditional Chinese medicine herb Artemisia annua (sweet wormwood), is present in the original plant at a concentration of approximately1%, produced using traditional plant extraction methods, with artemisinin priced at per kilogram2000around RMB, and in years with low yields of Artemisia annua, prices will rise further. To2000Yuan/kg, with environmental costs of5tons of wastewater, and according to data from the National Development and Reform Commission,Using controllable100Cubic meter industrial fermentation tanks, can replace5"10,000 mu of traditional agricultural cultivation for artemisinin production", significantly reducing production costs.

As a high-quality skincare ingredient, squalane, under traditional production models, needs to be extracted from the livers of deep-sea sharks, with each acquisition1tons of squalane, it requires the consumption of3000kilograms of shark liver. This crude extraction method is not only costly but has also sparked serious ecological controversies, posing a significant threat to marine biodiversity.Currently, industrial-scale production of squalane has been achieved using Saccharomyces cerevisiae and Yarrowia lipolytica.

Moreover, synthetic biology has also sparked a revolution in the field of functional peptide research and development. Functional peptides are composed of2-50Short-chain peptides composed of amino acids have become a major research focus in the development of new drugs and functional ingredients, owing to their high specificity, rapid action, and low side effects.It demonstrates significant application potential in multiple fields, including UV protection, skin whitening, and weight loss.

At the same time, Chen Jian also pointed out that new skincare ingredients in the era of synthetic biology have more comprehensive efficacy.The efficacy of a single ingredient can surpass that of combinations of multiple ingredients used in the past,Achieve multiple benefits simultaneously, including hydration, repair, firming, anti-wrinkle, and anti-inflammatory effects, breaking through the inherent traditions of skincare formulations.

Constructing microbial cells for the synthesis of complex multi-component products will significantly enhance efficiency.

Significant progress has also been achieved in the research and development of Rhodotorula yeast.By leveraging “community internet” technology to optimize the metabolic pathways of microbial communities, enabling Rhodotorula yeast to follow62∶27∶10The proportions of rose oxide, geraniol, and nerol—the three main components of rose essential oil—were generated, resulting in a fingerprint profile that highly overlaps with that of Damask rose essential oil. This indicates that the rose essential oil produced via microbial fermentation closely matches natural Damask rose essential oil in terms of aroma and efficacy, while production costs have been reduced.90%, laying a solid foundation for the widespread application of rose essential oil in cosmetics.

“Bio-cosmetics,” as an emerging sector within the cosmetics industry, rely on synergistic support from multiple dimensions, including policy, market, capital, and standards. Currently, the bio-cosmetics industry is in a critical period of rapid development, facing both significant market potential and policy opportunities.Challenges such as the lack of standards and a shortage of talent also persist.Clearly defining industrial tasks and addressing development challenges are key to promoting the healthy and sustainable development of the “bio-cosmetics” industry.

At the policy level, the new regulations issued by the National Medical Products Administration (NMPA) provide strong support for the innovative development of “bio-cosmetics.”2025Year2Month6On [Date], the National Medical Products Administration Released the "Several Provisions on Supporting Innovation in Cosmetic Ingredients", which proposed optimizing the classification of registration and filing for new ingredients, promoting simultaneous submission of associated products, and improving the management of the safety monitoring period, among other measures.9Specific Measures: Optimize the technical requirements for the classification of registration and filing of new ingredients; promote the simultaneous submission of applications for new ingredients and their associated products; enhance innovation services and the translation of applications for new ingredients; strengthen technical guidance and communication regarding new ingredients; improve the management of the safety monitoring period for new ingredients; strengthen technical guidance for research on cosmetic ingredient standards; promote the formulation and revision of cosmetic ingredient standards; reinforce basic research related to ingredients; and strengthen the development of information systems for cosmetic ingredients.

In Chen Jian’s view, this9These measures have opened a policy window for the innovation and application of “bio-cosmetic” ingredients, significantly improving the registration and filing efficiency of “bio-cosmetic” ingredients., enabling enterprises to obtain filing results more rapidly and accelerate the market launch of innovative ingredients.The multi-party collaborative registration model can fully integrate resources from all stakeholders, enhance the efficiency and quality of registration, and provide a more convenient and efficient pathway for innovation in raw materials for “biocosmetics.”

“The new measures proposed in the Provisions, such as the simultaneous submission of applications for new ingredients and associated products, and the safety monitoring of new ingredients, will undoubtedly facilitate further deepening of reforms, improve the mechanism for innovative development of cosmetics, encourage innovation in cosmetic ingredients, and build a collaborative innovation system for cosmetic ingredients oriented by market demand,” pointed out Chen Jian.

At the market level, China’s sustained economic development and the upgrading of consumer demand have brought enormous market potential to the “cosmeceutical” industry.

Chen Jian divides the development of the cosmetics industry into four stages:1.0Era (per capitaGDP<1ten thousand US dollars), the industry is dominated by “low-level imitation,” with severe product homogenization;2.0Era (per capitaGDP 1–2million USD), the industry entered a phase of “high-level imitation,” where companies began to prioritize product quality and efficacy, yet core technologies and raw materials remained dependent on foreign sources;3.0Era (per capitaGDP 2–3tens of thousands of U.S. dollars), the industry will enter a stage of “independent innovation,” with enterprises achieving breakthroughs in core technologies and raw material R&D, thereby establishing independent intellectual property rights;4.0Era (per capitaGDP>3USD), the industry achieved "international integration+“Cultural Export”: Chinese cosmetic brands have secured a significant position in the international market, leading industry development trends.

2023per capita in China,GDPAchieve1.27ten thousand US dollars, currently in the process of transitioning from the industry2.0Times Trend3.0The tipping point of a generational leap. During this critical period, raw material innovation has become the key for the cosmetics industry to achieve breakthroughs and bypass “Middle-Income Trap” key lever.“Bio-cosmetics,” leveraging their innovative advantages in raw material production, align precisely with the current market demand for high-quality, natural, and eco-friendly cosmetics. They are poised to dominate future market competition and become a core force driving China’s cosmetics industry into an era of independent innovation.

According to Chen Jian, the synthetic biology-based manufacturing of cosmetic ingredients offers advantages such as high efficiency, high stability, high consistency, and high controllability. This approach enables a green restructuring of the industry chain and facilitates a leap toward high-quality development. As the cosmetics industry evolves into the "bio-cosmetics" sector, the synthetic biological production of ingredients represents both a scientific opportunity and an industrial imperative, holding broad market prospects for the future.

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