The Asia-Pacific (APAC) make-up sector is the second largest globally and is expected to reach US$26.1bn in 2024, growing at a compound annual growth rate (CAGR) of 6.9% during 2019-2024. Rising disposable income and burgeoning middle class are spurring the demand for the sector in the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in the Asia-Pacific Make-up Sector’, reveals that the face make-up category led the sector in value terms while the eye make-up category is projected to register highest value CAGR at 7.0% over 2019-2024.
South Korea, Taiwan, Japan and China have emerged as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social, and technological assessment of 26 major economies in the APAC region.
The report states that Japan was the largest market in the make-up sector in the region, in both value and volume terms in 2019. China is expected to register the highest value CAGR of 9.1% during 2019-2024. In volume terms, South Korea will register the highest-volume CAGR of 5.8% during the same period.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The APAC make-up sector is expected to see strong growth during 2019-2024 underpinned by rising disposable income levels, and social aspirations in countries across the region, enabling consumers to spend more on make-up products. In addition, large millennial age group, which is known to pay high attention to appearance and seek innovative products, is poised to drive further growth in the sector.”
Among the high potential countries, face make-up is anticipated to witness an increase in consumption share in Taiwan and China during 2019-2024. The lip make-up and nail make-up categories are expected to register increase in consumption share in South Korea during the same period. The eye make-up category is expected to witness a decline in its consumption share across all high potential countries, except Japan during 2019–2024.
L`Oreal S.A., Shiseido Company, Limited and Kao are the leading market players in the Asia-Pacific make-up sector. L`Oreal S.A held the highest value share across all the make-up categories in 2019. Sensory indulgence, easy & affordable and health & wellness are the top trends that get along very well with the APAC make-up sector.
Ms. Agarwal concludes: “Driven by a more holistic understanding of health and wellbeing, the demand for makeup products that go beyond providing aesthetic enhancements is growing. For example, natural, botanical ingredients with calming or soothing effects are commonly used, which taps into the importance of mental as well as physical wellbeing. However, the natural cosmetics market in the APAC face a challenge in the form of green washing, with brands making false claims of being natural or containing natural ingredients, which will affect the legitimate natural brands.”
APAC cosmetics & toiletries industry set to reach US$236.2bn in 2024
The Asia-Pacific (APAC) cosmetics & toiletries industry is the second largest in the world and is expected to reach US$236.2bn in 2024, growing a compound annual growth rate (CAGR) of 5.8% during 2019-2024. Increasing disposable income and rapid urbanization have led the consumers to focus more on their appearance, spurring the demand for the sector in the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in the Asia-Pacific Cosmetics & toiletries Industry’, reveals that the skincare sector led the industry in value terms while the make-up sector is projected to register highest value CAGR at 6.9% over 2019-2024.
Vietnam, South Korea, Japan and Singapore emerged as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social, and technological assessment of 26 major economies in the APAC region.
The report states that Japan was the largest market in the cosmetics & toiletries industry in the region, in both value and volume terms in 2019, while Vietnam is expected to record the highest value and volume CAGR of 9.2% and 7.7% respectively, during 2019–2024.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The APAC region is expected to register high annual value and volume growth during 2019-2024 underpinned by growing economy, rising living standards and increasing demand for premium products. Additionally, the growth in the region is likely to be driven by the increasing demand for natural and organic products with ‘clean’ labels.”
Skincare and make-up sectors are expected to witness growth in consumption share across all high potential countries, except Vietnam, during 2019-2024. Meanwhile, personal hygiene sector is forecast to witness decline across all high potential countries, during the forecast period. Consumption share of feminine hygiene products is expected to grow only in Vietnam and South Korea, among the high potential countries. Furthermore, Vietnam is the only country to witness growth in the male toiletries and haircare sectors during the forecast period.
Procter & Gamble, Unilever and L`Oreal S.A are the leading market players in the APAC cosmetics & toiletries industry. Procter & Gamble held the highest value share in the feminine hygiene, haircare and male toiletries sectors in 2019. Sensory indulgence, easy & affordable and individualism & expression are the top trends that get along very well with the APAC cosmetics & toiletries industry.
Ms. Agarwal concludes: “Consumers in the APAC region are showing increasing interest in premium products as well as those, which help them save effort and time. As a result, manufacturers are launching new products that are easy and quick to use and help them manage and maximize their time.”
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