Once upon a time, thinning hair seemed to be a trivial concern in China, as an ancient idiom jokingly implied that “a noble person does not have thick hair.” However, the tide has turned in recent years, reflected by the fact that topics and discussions related to preventing hair loss and nourishing hair have flooded social media since 2022. 

Youth Drive Change 

According to one widely-distributed statistic, more than 200 million Chinese are troubled by hair loss not related to chronological aging—69.8% of them were younger than 30, and 41.9% were between 26 and 30. Despite that well-worn statistic, the National Health Commission insists it never released such data. While intrigued by this overdue clarification, I still find some other reports revealing the consumers’ increasing concerns on the subject matter and their rigorous efforts to seek effective solutions.

That may be due to the generational shift now underway in China’s approach to hair health. According to the “2023 China Hair Health Lifestyle Blue Book,” published by the Shanghai Nutrition and Health Institute of the Chinese Academy of Sciences, an overwhelming 97% of post-1990s consumers, along with 95% of females, are prioritizing hair health. This heightened awareness among younger demographics is accompanied by a growing interest in comprehensive solutions that combine hair transplantation with ongoing nourishment. As treatment options expand to encompass medication, laser therapy and other targeted approaches, the anti-hair loss market is ripe for segmentation and specialization.

Scalp Issues

Within this broader hair health revolution, scalp care is emerging as a critical focal point. CBNData’s “2023 National Scalp Health White Paper” revealed that more than half of consumers grapple with oily scalp concerns. Consequently, the demand is surging for products that go beyond basic cleansing to address the root causes of scalp issue. On e-commerce platform Tmall, scalp pre-wash treatments and scrubs ranked as the fastest-growing hair care categories between 2022-2023. Those gains fuele the rise of niche brands like Spes that specialize in these segments. The power of scalp health as a market driver is further evidenced by sales of Kérastase’s Elixir Ultime Camellia hair oil and Genesis Anti Hair-Fall Fortifying Serum in the latest 618 pre-sale live-streaming by influential KOL Austin Li.

Regulatory Headwinds 

Despite the anti-hair loss market’s promising trajectory, the implementation of China’s newly revised Regulations on Supervision and Administration of Cosmetics in 2021 introduced significant regulatory hurdles. The regulations segmented “hair growth” claims into three distinct categories—cosmetic, special cosmetic and drug—each with progressively stringent certification requirements. This has raised entry barriers and tempered growth in the short term, as evidenced by Moojing Analysis+’s report of a 33.7% year-over-year decline in anti-hair loss product sales from December 2022 to November 2023. Also telling is the fluctuation in new product registrations in the National Medical Products Administration’s special cosmetics filing system. Only 17 new anti-hair loss products were registered in 2022; that number rebounded to 87 in 2023, and 85 through May 31, 2024.

Drugs & Plugs 

Compounding the challenges posed by the evolving regulatory landscape is the intensifying competition from adjacent categories. Pharmaceutical hair loss products, such as Zhendong’s Dafexin and 3SBIO’s Mandi, leverage their clinical backing and drug-based active ingredients like minoxidil to capture market share. Hair transplant clinics vie for consumer with promises of permanent solutions. 

Despite these moves, an Insight and Info report notes cosmetics brands still maintain an advantage among the majority of consumers who prefer topical, non-invasive treatments and prioritize anti-hair loss certification in their product choices. To capitalize on this preference while navigating regulatory complexities, cosmetic brands are investing heavily in clinical testing and product registration to build credibility, while simultaneously promoting follicle-nourishing benefits that sidestep drug classification.

A Focus on the Scalp 

Amid the constantly evolving competitive landscape, several key trends are worth noting. On Chinese social media, hashtags like #ScalpHealth, #OilControlForVolume and #ScalpSpa reflect a growing recognition of the scalp’s central role in hair health and appearance. Emerging concerns like microbiome balance, barrier function and scalp aging inspire a new generation of products that soothe, clarify and fortify the scalp micro-environment.

In this dynamic arena, established players like Yunnan Baiyao’s Yangyuanqing, Guangzhou Degu’s Adolph and Uniasia Technology’s Ziyuan, as well as L’Oréal’s Kérastase and Pierre Fabre’s Rene Furterer are competing alongside rising stars such as Proya’s Off & Relax, Yatsen’s Eatim and Easycare’s Zhenmu. While each brand seeks to differentiate itself through unique positioning and product offerings, three overarching trends are shaping the market—Traditional Chinese Medicine, microbiome-balancing and sensory attributes.

What’s Trending? 

Traditional Chinese Medicine (TCM) ingredients like Orientalis leaf extract has emerged as a star active in anti-hair loss formulations. Derived from Thuja, Platycladus or Biota species, Orientalis is recognized in the Inventory of Existing Cosmetic Ingredients in China (IECIC 2021). Other TCM botanicals like Sophora flavescens root and Zinger officinale root are gaining traction, tapping into the trusted reputation and holistic philosophy of traditional Chinese herbalism.

As the scalp microbiome becomes a focal point for hair health, pre-, pro- and postbiotic ingredients that rebalance the scalp ecosystem are rising in prominence. Fermentation-derived botanical actives and barrier-reinforcing lipids and humectants are also key players in this space, aiming to optimize the scalp environment for hair growth and resilience.

Spa-like luxury is on-trend, too. Texture (rich, dense), scent (pleasant, calming) and application methods that incorporate massage or steam are integral to the scalp care experience, elevating it from a basic hygiene routine to a pampering, mood-enhancing ritual. A 2022 CBNData survey found that 55% of consumers seek pleasant scents in hair care products for emotional benefits, while 40% prioritize a luxurious texture.

A Holistic Approach 

All three trends point to a more holistic, inside-out approach to scalp and hair health that transcends traditional category boundaries. As the lines blur between hair loss prevention, scalp balance and dermatological care, opportunities should abound for hybrid products that combine cosmetic elegance with clinical performance.

Moreover, with more players investing heavily in R&D, patents play a crucial role. For starters. there’s Yangyuanqing’s patented “selective cleansing composition” for targeted scalp care. Adolph patented a plant-based dandruff removal composition and natural fragrances. Steyoung’s patent is for its fermented Sapindus mukorossi, which promotes microecological balance. Off & Relax’s Hairgrowju & BMP growth factor promote hair follicle health and growth. All underscore the search for effective, science-backed solutions for healthy hair.

The anti-hair loss and scalp care market in China is undergoing a profound transformation, shaped by the convergence of demographic shifts, regulatory pressures, cross-category competition and ingredient-driven innovation. While the heightened awareness and engagement of younger consumers offer tremendous growth potential, brands must navigate an increasingly complex landscape marked by stricter regulations and blurring category boundaries.

Ally Dai is a freelance writer/independent consultant based in Shanghai. She has covered the beauty industry for more than 15 years. Previously a senior editor and industry researcher, she now works on content creation with publishing houses, event organizers and PR companies in the personal care and life science industries. allisondai@126.com or allydai73@gmail.com