Xuhui district to build premium cosmetics industry cluster

Shanghai's Xuhui district is stepping up efforts to build a high-end fragrance, flavor, and cosmetics industry cluster, drawing on its strong scientific research capabilities and growing expertise in specialized raw materials.

A conference on the development of the fragrance, flavor, and cosmetics industry was held in Xuhui on June 10, bringing together more than 80 leading companies, emerging domestic brands, and research institutions.

At the event, officials unveiled the Shanghai (Xuhui) Domestic High-end Fragrance, Flavor, and Cosmetics Industry Cluster Development Plan (2026-28).

Under the plan, Xuhui will undertake 12 key initiatives to create an industrial ecosystem linking the fragrance, flavor, and cosmetics sector with fields such as life and health, professional services, fashion consumption, and digital intelligence. The district aims to become a nationally influential hub for the domestic premium fragrance, flavor, and cosmetics industry by 2028.

Shanghai's beauty industry has developed a distinct regional specialization, with Fengxian district serving as a center for large-scale manufacturing, and Jing'an district focusing on brand operations and high-end consumption. Xuhui is pursuing a differentiated strategy by leveraging its strengths in scientific and technological innovation, specialized raw materials, and professional services.

Rather than competing in large-scale production, the district is focusing on niche segments including premium fragrance and flavor ingredients, innovative specialty raw materials, and AI-powered precision skincare.

Supported by research institutions such as East China University of Science and Technology, the Shanghai Institute of Nutrition and Health of the Chinese Academy of Sciences, and Shanghai Institute of Technology, Xuhui has strengthened R&D in recent years in areas including high-end natural fragrance materials, synthetic fragrance compounds, and other fragrance-related ingredients.

These efforts have aligned closely with the product development needs of local premium fragrance brands while helping address gaps in upstream raw material innovation within Shanghai’s fragrance, flavor, and cosmetics industry.

The conference also marked the launch of an innovation service alliance for the fragrance, flavor, and cosmetics industry, bringing together nearly 30 universities, research institutes, industry associations, and testing institutions.

The alliance will provide comprehensive support for enterprises across the industry, expanding services beyond investment promotion to include full life-cycle assistance for fragrance and cosmetics companies.