Orient Securities: Cool beauty becomes a summer that just needs a combination of techniques to reshape the racetrack

The Zhitong Finance App learned that Orient Securities released a research report saying that due to the continued impact of global warming, demand for cool beauty products ushered in a high increase. From January to May 2026, online sales of related cosmetics increased by more than 45% year on year, and GMV surged 81.3% year on year in May. The bank pointed out that cooling technology has moved from a single sensory stimulation to a “physical+chemical” combination, and domestic brands have accelerated breakthroughs with “quantitative data+compound effects”; with frequent extreme weather, beauty and personal care companies with refined scenario insight and the ability to develop gentle formulations are expected to usher in definitive growth.

Orient Securities's main views are as follows:

Overall trend: The normalization of high temperatures has led to a high increase in demand, and cool beauty is moving towards a comprehensive evolution of “full scene, multi-effect integration”

Due to the continuing impact of global warming, China's average temperature in 2025 hit a historical extreme value since 1901, and extreme high temperature events will still occur frequently in 2026. Under this climate catalyst, demand for cool beauty ushered in a period of high growth. Online sales of related cosmetics increased by more than 45% year-on-year from January to May 2026, and GMV surged 81.3% year-on-year in May. Currently, cooling products have broken out of traditional sunscreen and body sprays and penetrated into all categories such as base makeup, essence, and eye cream. Among them, face cream, mask, and personal care form the three mainstream positions for this year's new cool products. The industry is presenting five core characteristics of quantification of somatosensory sensation, gentleness of technology, synergy of efficacy, category scenario, and emotional experience to meet the comprehensive “thermal management” needs of consumers in summer.

Technological evolution: from a single sensory stimulus to a “physical+chemical” combination, the underlying formulation and delivery system continues to improve

Cool feeling technology has left the early single ingredient and entered the era of physico-chemical blending. Physical cooling (achieving true cooling, evolved through four generations): The path has evolved from early natural herbs, iteration to a single polyol heat absorption system represented by erythritol, etc., and then upgraded to third-generation technology that relies on hydrogels and microcapsules to increase the efficiency of carriers. Currently, it is in the fourth generation of physico-chemical blending; its core is actually taking away surface heat through dissolved heat absorption and moisture evaporation (actual measurement can cool down about 5℃), and has extremely high temperature and properties. On the upstream side, according to GII data, the global cooling polyol market sales reached 56.26 billion US dollars in 2025, and is expected to increase to 92.87 billion US dollars in 2032. Chemical cooling sensation (targeted activation receptor, evolved over three generations): The core mechanism is to activate the skin's TRPM8 cooling receptor to send a “cold” signal to the brain; technically, it evolved from highly irritating and volatile natural menthol to a derivative represented by menthyl lactate (reduces spicy skin feeling), and now it has evolved to third-generation synthetic coolants represented by WS-3 and WS-23. Not only does the cooling sensation have a higher intensity and last longer, but completely eliminate odor and burning sensation. International raw material suppliers are more forward-looking to use AI technology to develop a novel TRPM8 regulator that does not contain menthol.

Competitive landscape: accurately anchor segmentation scenarios, domestic brands accelerate breakthroughs with “quantitative data+complex efficacy”

In the cooling market this year, domestic brands such as Shierjia, Willow Wood, and Runben achieved significant growth through extreme segmentation of the scenario. Brand competition is no longer limited to general refreshing concepts, but is deeply tied to pain points. For example, Schierjia launched Centella Smoothie Cream for after-sun repair of sensitive skin; Runben Co., Ltd. extended the main mosquito repellent business to a “cool” scene and laid out soothing ice cream for children; and Shanghai Jiahua (Liushen, Qichu) further refined the cooling matrix to portable shampoo and children's repair cream. At the same time, leading brands have upgraded “fuzzy skin feel” to “quantifiable indicators” (such as “instantaneous drop of 3℃ in 10 seconds”, “cooling 6.7℃ in 5 minutes”, etc.), and have successfully made the cooling system compatible with basic effects such as reddening, stabilization, and barrier repair, thereby building the core competitiveness of the product.

Investment advice: Cool beauty is moving towards a “real cooling+multi-effect synergy” dividend period, where upstream raw materials and downstream domestic brands benefit

With global warming and frequent extreme weather in summer, cool beauty is moving from a single sensory experience to a “real cooling+multi-effect synergy” bonus period. The bank believes that beauty and personal care companies with refined scenario insight and gentle formulation development capabilities will usher in room for definitive growth. On the upstream side, raw materials and OEM service providers that master novel synthetic coolants, complex physical cooling substrates and cutting-edge delivery technology will benefit deeply; the downstream side, which can accurately break into core scenarios (such as infant protection, sensitive skin repair) and take the lead in establishing a closed loop of “physical cooling+efficacy repair”, will be the first to reap the premium benefits brought by the summer “high temperature economy”.

Risk Alerts

There is a risk that terminal demand will fluctuate due to season and weather; the risk of increased industry competition and homogenization; the risk of new product development and technology iteration falling short of expectations.