Updated on 14 August 2026
Unilever’s China sales are growing again, but the company selling in China is smaller, more focused on beauty and wellbeing, and facing Chinese brands that are faster and increasingly premium.
By Daxue Consulting
Unilever’s underlying sales in China grew by a mid-single-digit rate in the first half of 2026, and all four of its business groups grew there, led by Beauty and Wellbeing. CEO Fernando Fernandez described China as “slowly improving” and attributed the rebound to premium innovation and digital and e-commerce channels (National Business Daily (每日经济新闻), July 2026). At group level, underlying sales grew 4.8% on turnover of €25.6 billion.
The group behind these numbers has changed. Unilever opened its first soap factory in Shanghai in 1923, left after 1949 and came back in 1986. In the early 2010s, its China ambition rested on more cities, more modern trade and more categories. Since then, Chinese brands have taken the lead in laundry, skin care and hair care, and Unilever has demerged ice cream and agreed to combine its food business with McCormick. This analysis of Unilever in China examines what remains, how it competes and what it implies for international FMCG and beauty groups.
| Daxue Overview |
|---|
| History: in China since 1923; back since 1986. |
| Performance: China underlying sales up mid-single digit in H1 2026; all four business groups grew. |
| Portfolio: ice cream (Magnum, Wall’s) demerged in December 2025; food business to combine with McCormick. |
| Key brands in China: Dove, Vaseline, Clear, Lux, OMO. |
| Main challenge: Chinese brands that launch faster, sell on Douyin and move into premium. |
Unilever in China: key figures
Exhibit 1: China returns to growth as the group narrows its portfolio
| Indicator | Figure | Period | Source |
|---|---|---|---|
| China underlying sales growth | Mid-single digit; all four business groups growing | H1 2026 | National Business Daily |
| Group underlying sales growth | 4.8%, turnover €25.6 billion | H1 2026 | Same |
| Ice cream demerger | The Magnum Ice Cream Company listed in Amsterdam on 8 December 2025 | December 2025 | Food Manufacture |
| Food business combination with McCormick | New company valued at more than US$65 billion including debt; 65% for Unilever and its shareholders; US$15.7 billion cash to Unilever | Announced 1 April 2026 | NACS |
| P&G Greater China organic sales, for comparison | +4% | FY2026 (to June) | 21st Century Business Herald (21世纪经济报道) via Eastmoney |
Source: compiled by Daxue Consulting. Unilever does not publish its China revenue.
A slimmer Unilever: ice cream out, food next, beauty first
Ice cream. Unilever completed the demerger of its ice cream business, now The Magnum Ice Cream Company, in December 2025 (Food Manufacture). In China, this covers Wall’s (和路雪) and Magnum, which remain on sale but are no longer Unilever brands. The category itself is analysed in the ice cream market in China.
Food. On 1 April 2026, Unilever and McCormick announced a deal to combine Unilever’s food business, home of Knorr and Hellmann’s, with McCormick (NACS).
Beauty and wellbeing. Beauty and Wellbeing was the main engine of Unilever’s China growth in H1 2026 (National Business Daily). Earlier, Dove and Vaseline posted double-digit growth at group level in Q3 2025, and the CEO already named China among the markets in recovery (Jing Daily, October 2025).
Chinese brands abroad. Fernando Fernandez also noted that some Chinese skin care brands are gaining ground in Southeast Asia, especially in Indonesia through TikTok Shop, mainly in facial care, while stating that this had not hurt Unilever’s core brands (National Business Daily). Competition with Chinese brands is no longer limited to China.
Unilever’s brands in China cover very different positions
- Dove (多芬): body wash, hair care and skin care; one of Unilever’s strongest brands on Chinese e-commerce.
- Vaseline (凡士林): body lotion and lip care, moving toward “skin science” claims.
- Clear (清扬): anti-dandruff shampoo for men and women, a long-standing China success.
- Lux (力士): mass body wash and hair care, under pressure from Chinese and niche brands.
- OMO (奥妙): laundry, strongest in pods; see the laundry detergent market in China.
Unilever competes with P&G and with Chinese brands on different terms
Exhibit 2: Unilever, P&G and Chinese brands in China
| Unilever | P&G | Chinese brands (e.g. Blue Moon, Proya, Adolph) | |
|---|---|---|---|
| Strategy | Slimmer portfolio, beauty and premium | Few large brands, premium innovation | Fast launches, specific claims |
| China growth signal | Mid-single digit in H1 2026 | +4% organic in FY2026 | Fast growth for beauty leaders |
| Marketing | Global brands moving to digital | Global brands, science claims | Douyin livestreams, creators, Xiaohongshu |
| Weak point | Mass brands squeezed on price | Price premium | Profitability in mature categories |
Sources: National Business Daily, 21st Century Business Herald; compiled by Daxue Consulting.
Chinese competitors are not only cheaper. In skin care, Chinese brands such as Proya have become category leaders, as covered in the C-beauty brands report and the cosmetics and personal care market in China. In hair care, brands built on ingredients and scalp care compete directly with Clear and Dove.
Personal care brands are now chosen on Douyin and Xiaohongshu
Chinese consumers discover personal care brands on Douyin and Xiaohongshu and buy them on Tmall, JD or Douyin itself. For a group like Unilever, this shifts marketing from large TV campaigns to product content, ingredient explanations and creator partnerships, with fast feedback from reviews. Brands with clear “skin science” claims, such as Dove and Vaseline, adapt more easily to short videos than mass brands sold on familiarity.
How Unilever’s China business has changed over the past decade
Exhibit 3: From expansion across categories to a focused premium portfolio
| Early 2010s | Today | |
|---|---|---|
| Growth model | More cities, more modern trade, more categories | Premium innovation and digital channels |
| Portfolio | Home care, personal care, food, ice cream, tea | Beauty and wellbeing, personal care, home care; ice cream demerged, food to be combined |
| Laundry | OMO among the leading brands | Chinese brands lead liquid; OMO strong in pods |
| Channels | Hypermarkets such as Carrefour and Walmart | Tmall, JD, Douyin, instant retail |
| Competition | P&G and local laundry brands | Chinese brands in every personal care category |
Daxue Take: implications for FMCG and beauty groups
Unilever’s answer to China’s changes has been to become smaller and sharper: leave ice cream, combine food, and focus on beauty, wellbeing and premium personal care. The return to growth in H1 2026 suggests the approach can work; the open question is whether a portfolio built for global markets can launch products as fast as Chinese brands, at prices Chinese consumers accept.
- For multinational FMCG groups, growth through distribution and urbanisation has given way to growth through premium products and content. A category-by-category review in China, as Unilever has done globally, may show where scale still pays and where it no longer does.
- For beauty and personal care brands, beauty and wellbeing are the growth engine but also the segment most crowded with Chinese brands. A clear, demonstrable claim is likely to be the condition of entry.
- For brands with Asian ambitions, Chinese brands are taking what they learn in China to Southeast Asia. Where a group manages China and Southeast Asia separately, a joint view of these competitors may become useful.
- For owners of mass brands, brands such as Lux face Chinese leaders on price. The options are a sharper claim or a smaller footprint, depending on margin targets.
Questions for leadership teams: Which China categories still justify investment at scale? How fast can a new product move from idea to Douyin launch? Which Chinese competitors are also expanding in Southeast Asia?
What to watch next
- Unilever’s China growth in the second half of 2026.
- The closing of the food business combination with McCormick.
- Growth of Dove and Vaseline against Chinese body care and skin care brands.
- Expansion of Chinese personal care brands in Southeast Asia.
FAQ about Unilever in China
When did Unilever enter China? Unilever opened a soap factory in Shanghai in 1923, left after 1949, and returned in 1986.
Is Unilever growing in China? Yes. Unilever’s underlying sales in China grew by a mid-single digit in the first half of 2026, with all four business groups growing.
What are Unilever’s main brands in China? Dove, Vaseline, Clear, Lux and OMO are among its best-known brands in China.
Does Unilever still sell ice cream in China? No. Unilever separated its ice cream business, including Wall’s and Magnum, into The Magnum Ice Cream Company in December 2025. The brands are still sold in China, but no longer by Unilever.
Who are Unilever’s main competitors in China? P&G and a growing number of Chinese brands in skin care, hair care, body care and laundry.
About Daxue Consulting
Daxue Consulting is a market research and strategy consulting firm focused on China. For FMCG and beauty groups, Daxue Consulting reviews portfolios category by category, benchmarks Chinese competitors, measures brand perception through social listening on Douyin, Xiaohongshu and Tmall reviews, and tests new claims before launch. Learn more about our business strategy and consumer research services, or contact our team.
Author: Daxue Consulting
