Aesthetic Giants Retreat to County Markets Amid Profit Plunge and Fierce Price Wars

The Former Leaders of the Medical Aesthetics Industry Have Collectively Lost Momentum.

Currently, among the three domestic hyaluronic acid giants, only Bloomage Biotech has released its preliminary earnings report.2024Annual financial reports have all been released. Without exception, they have delivered their worst results in recent years.

Haohai Biological Technology's2024The annual financial report shows,2024In the year, the company achieved operating revenue of approximately26.98billion yuan, a year-on-year increase of1.64%, corresponding to a net profit attributable to shareholders of approximately4.2billion yuan, a year-on-year increase of1.04%. The corresponding growth rates for the previous year were respectively24.59%and130.58%. Among them, hyaluronic acid-related revenue was7.42100 million yuan, although a year-on-year increase of23.23%, but2023Year and2022year, the year-on-year growth rates of this business line were respectively95.54%and27.9%. Imeik also reported its latest financial results, showing a significant slowdown in growth rate.2024In [Year], Imeik recorded operating revenue32.26100 million yuan, a year-on-year increase of5.45%, net profit attributable to shareholders of the parent company18.72hundred million yuan, is the company's self-2020Annual LoginAthe worst performance since its listing.

By comparison, Bloomage Biotech faces a more severe situation.According to the previously released preliminary earnings announcement,2024In [year], Bloomage Biotech is expected to achieve operating revenue of53.71 100 million yuan, a year-on-year decrease11.6%, Net profit attributable to shareholders1.46100 million yuan to1.75billion yuan, representing a decrease compared to the same period last year4.18100 million yuan to4.47100 million yuan, a significant year-on-year decrease70.47%to75.36%。

Although this marks the first time that the three major hyaluronic acid players have experienced a cliff-like decline in performance, discussions about the sluggish growth of hyaluronic acid and the imminent replacement of the leading aesthetic medicine stocks have been ongoing for nearly2years. This once seemingly foolproof, high-margin industry appears to have reached a dead end, struggling to find a clever way out amid the pincer attack from second-tier brands and the continuous emergence of popular new ingredients.

An interesting phenomenon is that, although the operational performance of the three major hyaluronic acid players has been lackluster,Yet, hyaluronic acid-related products from various companies have not sold poorly.

Taking Imeik as an example, within its operational structure, the hyaluronic acid product portfolio—comprising solution-based and gel-based injectable products—contributed over98%income. In2024In [Year], the operating revenues from Imeik's solution-based injectable products and gel-based injectable products each saw a slight increase.4.4%and5.01%, during which period, Imeik's hyaluronic acid-related products achieved cumulative sales of614.8110,000 units, year-on-year growth17.7%。

A similar situation also occurred in the financial reports of Haohai Biological Technology.2024year, the growth rate of Haohai Biological Technology's total operating revenue dropped to3.77%, the revenue growth rate of the medical aesthetics and wound care product business line, where hyaluronic acid products are located, was13.08%, while sales of hyaluronic acid products increased during this period96.07%, nearly doubling.

Behind this lies the price war sweeping the hyaluronic acid market, with its drag on the performance of industry giants becoming increasingly evident.

2021In recent years, attracted by high gross margins and strong market enthusiasm, a large number of brands have entered the hyaluronic acid product market. At that time, early movers such as Bloomage Biotech, Imeik, and Haohai Biological Technology had already launched hyaluronic acid brands covering various tiers and application scenarios. Consumer awareness of hyaluronic acid had also become highly mature, thanks to substantial investments in market education by these industry giants. With high product gross margins providing a buffer, low-price strategies have become the common choice for latecomers in this red-ocean market. Hyaluronic acid products priced at the thousand-yuan level have flooded medical aesthetic institutions across the country, even pressuring leading hyaluronic acid brands to initiate price reductions.

VCBeat searched publicly available information and found that,2021Since [year], sales of leading hyaluronic acid brands across various categories have declined to varying degrees at the retail level.Among them, the medical-device-classified skin boosters saw the largest price drop, from approximately1500Yuan~2500Yuan/times, dropping to approximately500Yuan~1000Yuan/times, with a decline of60%~70%. In addition to direct price cuts, major manufacturers have also engaged in price wars indirectly through various promotional activities, such as buy-2mlSubmit1ml, resulting in a lower actual unit price33%; for example, some brands leverage hyaluronic acid+Bundled packages for intense pulsed light (IPL) skin rejuvenation are used to achieve volume-based pricing. In addition, some hyaluronic acid brand manufacturers offer channel incentives in exchange for exclusive partnerships.

Price Reductions of Different Types of Hyaluronic Acid Products Data Source: Compiled by VCBeat based on public information

In the price war at the consumer end, the three major hyaluronic acid manufacturers, as the primary sources of these products, have had to repeatedly lower their prices to maintain market share.By reviewing the financial reports published in previous years by Bloomage Biotech, Imeik, and Haohai Biological Technology, it can be observed that the unit price of products, calculated based on the sales revenue and sales volume of the corresponding product lines, has since2021Since , there has been a clear downward trend. Especially in2024In [year], the unit prices of products from Imeik and Haohai Biological Technology both experienced a more pronounced inflection point of decline.

Average Unit Price Changes of Related Products from the Three Major Hyaluronic Acid Players Data Source: Calculated by VCBeat based on financial report data

Meanwhile, the performance drag caused by price wars has been gradually accumulating.2021Since [year], Bloomage Biotech, Imeik, and Haohao Life Sciences have all experienced a scissors gap where revenue growth has failed to keep pace with sales volume growth.

During this period, industry giants also attempted to reverse the trend by launching more premium product lines, in2023In that year, the average selling prices of products from both Bloomage Biotech and Haohai Biological Technology experienced a slight rebound. This was primarily because these two hyaluronic acid giants launched more premium product lines to mitigate the impact of price wars on their overall operational performance. For instance, Bloomage Biotech introduced the “Age-Defying Dual Needle,” which combines the immediate filling effect of high-molecular-weight hyaluronic acid with the collagen-stimulating and regenerative properties of low-molecular-weight active peptides, thereby extending the duration of hyaluronic acid effects to18-24months, although data from the So-Young platform shows that the product's repurchase rate exceeds40%, becoming a core blockbuster product of the year. However, due to its limited overall sales volume, it failed to reverse the downward trend of Bloomage Biotech’s hyaluronic acid product line.

Gross Profit Margins of Related Products for the Top Three Hyaluronic Acid Players Data Source: Compiled by VCBeat based on public data

Nevertheless, despite repeated concessions in the price war, the three major hyaluronic acid players have maintained their historically high gross profit margins. According to2023Nian He2024annual financial report, the gross profit margins of hyaluronic acid-related products of both Bloomage Biotech and Haohai Biological Technology were at70%As mentioned above, the gross profit margin of such products from Imeik is even higher than90%. For the three major hyaluronic acid players, there is still ample buffer room for price reductions in hyaluronic acid-related products.

In other words, although price wars have severely undermined performance, hyaluronic acid remains a profitable business.

Of course, not all hyaluronic acid products remain a profitable business.

Unlike injectable hyaluronic acid products, whose sales volume can be boosted by price reductions, functional skincare products containing hyaluronic acid—once extremely popular—are experiencing a simultaneous decline in both sales volume and average selling price. According to the financial reports of Bloomage Biotech,2023In [year], the average unit price of Bloomage Biotech's single-dose functional skincare products increased from the previous year's12.83Yuan/tablets, reduced to11.44Yuan/tablets, yet the corresponding revenue shrank instead18.45%。

Revenue Changes in Bloomage Biotech’s Functional Skincare Products Data Source: Compiled and calculated by VCBeat based on financial report data

In fact, the cooling of functional skincare products in recent years has not only affected hyaluronic acid and Bloomage Biotech. Data shows that in2024Yearof618During the major sales promotion, the year-on-year sales of some functional brands declined or remained flat, while basic moisturizing, sales of gentle repair products have shownRebound. Baidu Index shows,“Chemical Exfoliation”、“MorningCEveningA”search volume for keywords such as2021Annual peak decline of over60%, whileXiaohongshu/About Douyin“The Pitfalls of Efficacy-Focused Skincare”“Severe Facial Skin Damage”Year-on-Year Growth in Notes200%。

In China, functional skincare products were the first wave of items to gain popularity through live-streaming influencers; after being validated by the market, they have now entered a downward trajectory of disenchantment.

In the past, the market entry barrier for functional skincare products was not high. With a large number of brands flooding the market, homogeneous competition in the functional skincare sector has intensified. In previous promotional campaigns, many brands exaggerated the“Technological Ingredients”、“Patented Technology”，to attract attention, creating a cognitive bias that higher concentrations of active ingredients equate to greater efficacy. However, consumers often find that the actual results fail to meet their expectations after use. In recent years, social media platforms such as Xiaohongshu and Douyin have seen a growing number of reported cases of compromised skin barriers, leading consumers to exercise greater caution when selecting functional skincare products.

Since then, regulatory authorities have strengthened qualification and advertising requirements for functional skincare products. For example,China's "Regulations on the Supervision and Administration of Cosmetics", the European UnionSCCSNew Regulationsetc., the review of product efficacy claims has become more stringent, requiring scientific evidence such as clinical trials and literature data, thereby prolonging the time required for efficacy evaluation and filing before new products are launched.

Meanwhile, a continuous stream of new aesthetic medicine ingredients with longer-lasting effects and improved safety profiles is reshaping consumer preferences for minimally invasive aesthetic procedures. For instance, recombinant collagen, Sculptra (often referred to as “Baby Face Injection”), and Ellansé (commonly known as “Girl’s Needle”) are capturing market share from hyaluronic acid-based functional skincare products and even encroaching on the domain of basic hyaluronic acid injectables offered by major medical aesthetic institutions, thanks to their longer duration of efficacy, safer user experience, and more natural-looking results.

Products Utilizing New Raw Materials in Medical Aesthetics Data Source: VCBeat, compiled from public data

 Among them, PLLA biostimulators, CaHA biostimulators, and PN/PDRN skin boosters are undoubtedly the hottest new minimally invasive aesthetic products on the market.

Youth-restoring injections, with poly-L-lactic acid as the primary active ingredient, target long-term comprehensive anti-aging.According toGrand View ResearchData,2023Global Market Size of Poly-L-lactic Acid Fillers in 2025 Reached6.8hundred million USD, annual growth rate22.3%，Far surpassing hyaluronic acid12%。According to Huadong Medicine's financial report，2023Year,Flagship Girl Needle BrandEllanséEllanséDomestic sales in China reached9.2100 million yuan, a year-on-year increase of240%, with a repurchase rate exceeding50%。According toAccording to the SoYoung platform,2023Year，Year-on-Year Growth in Orders for Ellansé380%, ranking among high-end injectable treatmentsTOP3。Furthermore, according to South Korean customs data,2023Year，China Imports from South KoreaPDRNproducts (such as Placentex) with a value of4.3USD 100 million, a year-on-year increase of170%。On the Xiaohongshu platform,2023Year,“Salmon Needle”Growth in Related Notes520%，RelatedTopic views exceed8100 million times.

For the once-dominant hyaluronic acid giants, optimizing product efficacy and user experience while maintaining high gross margins is undoubtedly a critical challenge to address at present.

In recent years, hyaluronic acid-related products have become increasingly visible in medical aesthetic clinics in small county-level cities.For instance, hyaluronic acid-based functional products from brands such as Biohyalux and QuadHA are sold in beauty stores in county-level cities; meanwhile, injectable treatments like Hearty and Ru Bai Angel are offered in county-level medical aesthetic clinics and even in the plastic surgery departments of public hospitals. As prices for these products continue to decline, they are increasingly penetrating lower-tier markets.

VCBeat’s search of public records revealed that,On one hand, hyaluronic acid giants are extending their reach into county-level markets by establishing various online and offline collaborative channels.

For instance, Imeik collaborates with local medical aesthetic institutions and clinics in county-level markets, leveraging authorized distributors to rapidly expand coverage into regions with insufficient medical resources, with plans toNationwide Coverage80%Bloomage Biotech provides direct product supply (such as Hearty and Ru Bai Tian Shi) and technical support to the aforementioned county-level regions.thenVia“Runbaiyan”“QuadHA”Establish brand presence in county-level beauty collection stores, offering mid-to-high-end product lines tailored to lower-tier markets. Collaborate with local county distributors to build a distribution network covering county-level pharmacies, specialty cosmetics stores, and maternal and infant product stores., and leverage its medical products (such as hyaluronic acid injections) to enter county-level hospitals, clinics, and pharmacies. Haohai Biological Technology also collaborates with local private medical aesthetics clinics and the plastic surgery departments of public hospitals, distributing products through its dealer network. It gains access to the public healthcare system by participating in the procurement of consumables for the dermatology or wound repair departments of county-level hospitals.

Meanwhile, the hyaluronic acid giant alsoLeveraging mainstream platforms in lower-tier markets such as Pinduoduo, Kuaishou, and Douyin through live-streaming e-commerce,KOLReach consumers in county-level areas. Leverage private traffic channels, such as WeChat communities and community group buying, to conduct promotional campaigns and health education initiatives. Host experiential events at county-level shopping malls or markets to enhance brand awareness.

On the other hand, targeting the consumption characteristics of lower-tier county markets, hyaluronic acid giants have also launched specific products and service packages.For example, Imeik launched“Hi-Ti”Affordable Series of Skin BoostersHighly cost-effective products to lower the barrier to entry, launched simultaneouslySmall-pack or course-of-treatment bundles, tailored for county-level users“Low Frequency, Low Unit Price”Consumption Habits. County-Level Exclusive Product Line, launched small-volume, low-priced hyaluronic acid products, such as1mlPackaging“Hearty·Lite Edition”, priced lower than mainstream urban products20%-30%, lowering the barrier for consumers' first-time trial，Design“3Subsequent Hyaluronic Acid Injections+1Secondary Repair”county-exclusive packages, locking in customers through a prepaid model.

Haohai Biological Technology covers the diverse demands for hyaluronic acid in county-level markets through a differentiated product strategy. For instance, it has launched cost-effective products such as Haiwei to highlight their high price-performance ratio, thereby meeting the price-sensitive needs of consumers and medical institutions in county-level areas. Meanwhile, mid-to-high-end products like Jiaolan cater to the upgrading demands of high-end clients or medical aesthetic institutions in these regions. At the same time, Haohai Biological Technology will alsoMedical Dressings/Wound CareDeploy serious medical products to dermatology and burn departments in county-level public hospitals, thereby enhancing brand awareness among consumers in these regions.

In addition, hyaluronic acid giants have also strengthened talent collaborations with county-level medical institutions and aesthetic medicine clinics.For instance, Imeik collaborates with county-level hospitals to conduct medical aesthetics technical training, enhancing local physicians’ proficiency in using Imeik’s products, and popularizes knowledge of minimally invasive aesthetic procedures through online and offline activities to cultivate the market. Bloomage Biotech, on the other hand,Participating in County-Level Areas“Beauty and Health”Industrial Projects: Collaborating with county-level hospitals on the supply of medical aesthetic consumables, or supporting the development of local health industrial parksBy training physicians at county-level medical aesthetic institutions, we promote light medical aesthetic solutions such as mesotherapy injections and skincare treatments.

With this, the long-standing wealth-creation myth surrounding hyaluronic acid has largely come to an end. The era in which simply adding this ingredient guaranteed market traction is over; consumers who pay for these products will continue to scrutinize their efficacy and safety. Manufacturers that rode the hyaluronic acid boom must now pause to deepen their investment in product quality and services. By eliminating low cost-performance products through price competition and honing product and service capabilities even in smaller county-level markets, hyaluronic acid can indeed remain a sustainable and profitable business.