Consumers in the Asia-Pacific (APAC) region are shying away from artificial/synthetic ingredients to opt for skincare products with ‘natural’ and ‘organic’ ingredients, as these are perceived to be of high-quality and safe for skin, finds GlobalData, a leading data and analytics company.
This is substantiated in the company’s 2018 Q3 Consumer Survey, which shows that 41% of the respondents in the APAC region associated natural/chemical-free personal products with high-quality.
The company’s report, ‘Opportunities in the Asia-Pacific Skincare Sector: Analysis of Opportunities Offered by High-Growth Economies’, reveals that the APAC skincare market is forecast to grow from US$70.8bn in 2018 to US$99.5bn in 2023, recording the fastest compound annual growth rate (CAGR) of 7% compared to other regions.
The APAC skincare sector is dominated by China, which accounted for a share of 50.1% in 2018, followed by Japan and South Korea with 24% and 10.8% share, respectively. India, with a forecast CAGR of 9.2%, will be a promising market for skincare products during 2018–2023 while China and Indonesia are expected to grow at healthy CAGRs of 8.3% and 8.1%, respectively.
The report highlights China, Hong Kong, South Korea and Singapore as the high-potential countries based on the company’s unique scoring system, which involves risk-reward analysis of 12 major economies in the APAC region.
According to the report, the ‘facial care’ category led the APAC skincare market with 91.7% share of the total sales in 2018. The category is forecast to grow at a strong CAGR of 7.1%, which is marginally lower than the fastest growing category, ‘hand care’ (7.2%) during 2018-2023.
GlobalData forecasts the consumption share of facial care products to increase across all the high-potential countries while categories such as ‘depilatories’ and ‘make-up remover’ to experience a decline in their consumption share during the forecast period.
Mohammed Masiuddin Shajie, Consumer Analyst at GlobalData, says: “With growing urbanization and increasing employment rate, consumers are getting busier and demanding time-saving and easy-to-use skincare products that serve multiple purposes. Particularly, on-the-go products in more convenient packaging formats such as pouches and resealable packs are gaining popularity in the APAC skincare market.”
The report further reveals that with growing demand for bespoke products tailored to suit specific skincare needs, manufacturers are introducing products that address specific skin concerns of consumers. Products for dry skin for long hydrating look, and those tagged as ‘detoxifying’ and ‘anti-pollution’ are some of the examples.
Shajie concludes: “Evolving perception of male grooming will drive growth in skincare targeted at men, particularly in the urban locales. Urban men are now increasing their spending on skincare products, especially in the facial care category on the back of improving disposable incomes and growing image-consciousness.”