23 Dec 2020
Posted in Consumer
APAC cosmetics & toiletries industry set to reach US$236.2bn in 2024, says GlobalData
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.”