Business

Proya Cosmetics Targets Global Top 10: Can China’s Beauty Giant Conquer Western Markets?

Proya Cosmetics plans global expansion via acquisitions, aiming for top 10, backed by Hong Kong listing.

September 16, 2025, 1:12 PM

Executive Summary

Proya Cosmetics, China’s largest beauty company, is embarking on an aggressive international expansion strategy through Western brand acquisitions, aiming to become a global top 10 beauty company and reach $7 billion in annual revenue within a decade.

To finance its M&A strategy, Proya plans a secondary listing in Hong Kong, capitalizing on a buyer’s market where an oversupply of Western beauty brands are seeking exits.

This westward expansion is crucial for Proya due to slowing domestic growth in China, but the company faces challenges in identifying suitable acquisitions and integrating them into diverse global markets.

The Story So Far

Proya Cosmetics, China’s largest beauty company, is actively pursuing international expansion and acquisitions of Western brands due to slowing growth in its domestic market and an ambitious goal to become a global top 10 beauty firm with $7 billion in annual revenue within a decade. This strategic move is opportune given a buyer’s market in Western countries, where an oversupply of beauty brands are seeking exits, and is being funded by Proya’s recently approved secondary listing in Hong Kong to raise capital for these M&A activities.

Why This Matters

Proya Cosmetics’ aggressive strategy to acquire Western beauty brands and achieve top-tier global status marks a significant shift in the beauty industry, signaling a new era where major Chinese conglomerates are becoming global players rather than just domestic leaders. This pursuit offers a crucial lifeline for Western brands seeking exits in a tightening M&A market, but its ultimate success will depend on Proya’s ability to effectively integrate these acquisitions and navigate diverse international market dynamics, especially as its domestic growth slows.

Who Thinks What?

Proya Cosmetics, through its CEO Hou Juncheng, aims to become a top 10 global beauty company and achieve $7 billion in annual revenue within a decade, primarily through strategic acquisitions of Western brands, driven by slowing domestic market growth.

Investment bank Ohana & Co. views Proya’s expansion as a significant shift, with a Chinese conglomerate aspiring to global leadership, leveraging a buyer’s market where an oversupply of Western beauty brands are seeking exits due to a dwindling pool of local buyers.

Proya Cosmetics, China’s largest beauty company, is embarking on an international expansion strategy aimed at cracking the global top 10 beauty companies. With over $1.4 billion in sales last year, the Hangzhou-based firm is actively pursuing acquisitions of Western brands, leveraging a buyer’s market as mergers and acquisitions have slowed for other global players.

Proya’s Global Ambitions

The 20-year-old company, which became the first Chinese beauty firm to surpass 10 billion RMB in annual sales, is looking beyond its domestic market where growth has begun to slow. Proya’s CEO, Hou Juncheng, has articulated a goal to achieve at least 50 billion yuan ($7 billion) in annual revenue within the next decade, primarily through strategic purchases of EU and US labels.

To support these international ambitions, Proya recently announced board approval for a secondary listing of its shares in Hong Kong, complementing its existing Shanghai listing. This move is expected to provide the capital necessary for its aggressive M&A strategy.

Market Dynamics and Opportunities

Investment bank Ohana & Co.’s managing partner, Ariel Ohana, noted that Proya represents a shift where a Chinese conglomerate is now aspiring to be a global player rather than just a domestic leader. This comes at a time when an oversupply of beauty brands in Western markets are seeking exits, facing a dwindling pool of local buyers.

Proya, alongside other rising Asian beauty giants, presents new acquisition opportunities for these Western brands. The company’s portfolio includes its flagship skincare line Proya, the makeup label Timage, and seven other brands spanning hair, skincare, and cosmetics.

Navigating Challenges and Sustaining Growth

Despite its domestic success, Proya has not been entirely immune to the slowdown in China’s beauty market. The company’s revenue growth in the first half of the year was 7.2 percent, missing expectations and marking a significant decline from the 21 percent growth seen in 2024.

This slowdown underscores the urgency of Proya’s westward expansion. However, the conglomerate faces the challenge of identifying suitable acquisitions that can effectively facilitate its entry and growth in foreign markets.

Outlook

Proya Cosmetics’ aggressive international M&A drive signifies a growing trend of Chinese companies seeking to become major global players in various industries. Its success will depend on its ability to integrate Western brands, navigate diverse market dynamics, and sustain its competitive edge on a global scale.