Cosmetics & toiletries industry in Philippines forecast to be worth US$4.2bn in 2023, says GlobalData

Fuelled by increasing disposable income on the back of growing employment levels, the cosmetics & toiletries industry in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 4.9% from ₱180.1bn (US$3.4bn) in 2018 to ₱228.8bn (US$4.2bn) in 2023, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Philippines Cosmetics & Toiletries’, reveals that haircare products held the largest value share of 28.4%, followed by skincare products with 26% in 2018. Suncare sector is set to grow at a fastest value CAGR of 8.2%, followed by skincare products with a CAGR of 7.9% between 2018 and 2023.

Shivangi Gupta, Consumer Analyst at GlobalData, says: “Increasing population and declining unemployment rates are driving the growth of the cosmetics & toiletries industry in the Philippines, as image-conscious consumers are increasingly opting for haircare and skincare products.”

The value share of the Philippines in the Asia-Pacific (APAC) region is expected to decrease from 2.1% in 2018 to 1.8% in 2023, mainly due to the projected faster growth of cosmetics & toiletries products among other leading countries in the region, such as China and India during the forecast period.

The per capita consumption (PCC) of cosmetics & toiletries in the Philippines, which stood at 8.4 units in 2018, was lower than both the APAC and global levels. It is expected to increase to 8.8 units by 2023.

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Unilever, Procter & Gamble and Colgate-Palmolive were the leading market players in the Philippines while Cream Silk, Pond`s and Colgate were the top brands. Convenience stores was the leading distribution channel for the sales of cosmetics & toiletries products in the country while private label products accounted for a value share of 1.1% in 2018.

Gupta concludes: “Filipinos are increasingly seeking products that contain natural ingredients as they perceive them to be safer than those with chemical formulations. This demand for cosmetics & toiletries products with ‘100% natural’ claims will contribute to the future growth of the market.”

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