Asia-Pacific (APAC) region will continue to be the largest skincare market through 2022 and is forecast to reach US$90.9 billion, according to leading data and analytics company GlobalData.
The company in its latest report, Opportunities in the Asia-Pacific Skincare Sector, forecasts that APAC region, which accounted for a 57.5% value share of the global haircare sector in 2017, is set to grow at a compound annual growth rate (CAGR) of 6.4% over the period 2017-2022.
Consumer trust in natural ingredients will boost innovations in plant-based formulations
Although counterfeiting of skincare products currently poses a major threat to the manufacturers in APAC, the region’s judicious consumer base provides abundant opportunities for brands to innovate on products with ‘natural/organic/non-synthetic’ formulations. As such products with ingredients like green tea extracts and macadamia oil are driving the growth of both luxury and mainstream skincare brands; while an image conscious male population is adding to the sales of skincare products. This will in turn push the brands to focus on the consumer affinity towards natural and organic ingredients, thereby boosting growth, according to Srimoyee Nath, Senior Analyst – Consumer Markets at GlobalData.
Depilatories, hand care and make-up removers remain untapped opportunity areas for leading players
The APAC market for skincare products is highly fragmented with the top five brands holding a value share of 14.2% in 2017. The presence of a large number of brands makes the market increasingly competitive, with consumers often switching brands and settling for more personalized products.
The top 10 companies in the region include L`Oreal S.A., Kose Corporation, Shiseido Company, Amorepacific Corporation, Kao, Procter & Gamble, Amway Corporation, Unilever, Beiersdorf Ag and LG Corp. Most of these are present in body care and facial care categories. However, depilatories, hand care and make-up remover categories are less exploited areas for the leading companies in the skincare sector, reveals GlobalData.
Hong Kong, South Korea, China and Malaysia identified as high potential countries
The company has identified Hong Kong, South Korea, China and Malaysia as the four high potential countries in the region based on the company’s ranking methodology. Rising disposable incomes in growing economies such as China, as well as a strategic location of Hong Kong, are expected to drive the value and volume sales in the region. Moreover, a significant male population in these countries seeking skincare solutions catering to specific male nuances is also boosting growth in the sector.
Hectic work schedules spur the demand for multi-purpose skincare products
Busy working professionals in APAC are looking for multi-purpose skincare solutions, such as make-up removers which offer benefits of cleansing and toning, to maximize their free time. Convenient skincare product formats, suitable for on-the-go consumption, are fast gaining popularity.
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