07 Oct 2020
Posted in Consumer
APAC emerges as largest skincare market globally, expected to reach US$95.7bn in 2024, says GlobalData
Improving living standards and rising health consciousness among consumers are driving demand for skincare products in the Asia-Pacific (APAC) region. As a result, the skincare sector in the region is forecast to grow from US$71.5bn in 2019 to US$95.7bn in 2024, at a compound annual growth rate (CAGR) of 6%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in the Asia-Pacific Skincare Sector’ reveals that the facial care category led the sector in value terms while hand care category is forecast to register highest value CAGR at 6.3% over 2019-2024.
The report identifies Japan, South Korea, Singapore and Malaysia 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 19 major economies in the APAC region. It states that Japan was the largest market in the skincare sector in the APAC region, in both value and volume terms in 2019, while South Korea is forecast to register the highest growth in value and volume terms during 2019–2024
Ritu Sharma, Consumer Analyst at GlobalData, says: “APAC is expected to register stable annual volume growth during 2019–2024, as consumer awareness regarding skincare in the APAC is growing rapidly. In addition, value and volume growth in the region will be largely driven by rising disposable incomes and growing demand for skincare products with natural ingredients.
“The facial care category is expected to see growth in consumption share across all high-potential countries, except Japan. Whereas the make-up remover category is forecast to remain unchanged in all high-potential countries, except South Korea where its consumption share is expected to decline.”
Ms Sharma concludes: “Growing popularity of anti-aging products, rising focus on products with traditional ingredients and increasing demand for anti-pollution skincare products are set to drive the market in future.”