Asia Pacific’s beauty recovery is already underway — if Mainland China is not included in the analysis. That’s the conclusion of new data from Generation Research, a specialist company that tracks the duty-free and travel retail market.
The giants of the sector have spent the past two years citing weak travel retail sales in Mainland China and Hainan as the key factor behind disappointing performance. The findings of Generation Research strengthen this viewpoint. Asia Pacific travel retail beauty sales fell 11.1% in Q1 2026, from $5.1 billion to $4.5 billion. But a single market — Mainland China — accounted for 93% of the regional decline.
Excluding Mainland China, travel retail beauty sales across the region grew almost 8% in Q1, driven by skincare and fragrance. The encouraging news is that Hainan, China’s island offshore shopping paradise and Free Trade Port (FTP), has also returned to growth.
The data suggests Asia Pacific’s beauty slowdown should no longer be categorized as a regional issue. The figures have been dominated by disruption in one market — Mainland China. The rest of the region is regaining momentum.
China is no longer the whole story
The data marks a significant shift from last year. Estée Lauder Companies attributed much of its FY2025 organic sales decline to global travel retail, while L’Oréal cited persistent weakness across North Asia.
A year on, L’Oréal says travel retail remains slightly negative, largely because weakness in Mainland China continues to outweigh the recovery in Hainan. However, Southeast Asia — particularly Vietnam — and India are helping to reshape the region’s growth story.
“The dynamics have changed,” Jesus Abia, managing director of L’Oréal Travel Retail Asia Pacific, says. Chinese consumers are traveling more domestically, supporting Hainan’s recovery, while outbound travel to markets such as Korea and Thailand is returning. At the same time, more Indian travelers are visiting Singapore, Vietnam, and Malaysia, creating new growth opportunities. “The appetite for beauty remains stronger than ever,” Abia says.
Shiseido Travel Retail notes a similar pattern. Adele Zhang, managing director of Shiseido Global Travel Retail, highlights strong momentum in Thailand, driven by government policies and tourism, while the business has also reported high-double-digit growth among travelers from Taiwan, Hong Kong, Southeast Asia, and Western markets.
The challenges remain concentrated in Mainland China, where changes to airport retail concessions have disrupted trading, as well as in Japan, where geopolitical tensions have reduced Chinese visitor numbers. In response, Shiseido is broadening its marketing focus to target other nationalities and adapting its assortment accordingly. “We are actively discussing increasing products for darker shades because we are now selling more to Southeast Asian consumers,” Zhang says. In Hainan, the company recently launched Nars Natural Matte Longwear Foundation, which has shades developed specifically for Asian skin tones.
