16 Dec 2019
Posted in Consumer
Japan’s beauty industry set to reach US$41.9bn by 2023, says GlobalData
With the sales of Japanese beauty (J-beauty) and grooming products rising exponentially in recent years, brands are making every effort to tap the available opportunities. Against this backdrop, the Japanese cosmetics and toiletries (C&T) market is forecast to grow at a compound annual growth rate (CAGR) of 3.5% from US$35.3bn in 2018 to US$41.9bn in the Asia-Pacific (APAC) region, says GlobalData, a leading data and analytics company.
According to GlobalData, the South Korean C&T market is forecast to grow at a CAGR of 6.9% from US$14.3bn to US$19.9bn during the same period.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData says: “What makes Japan a high-value market is the depreciation of yen attracting a large number of Chinese tourists in Japan, who in turn account for a significant share of Japanese cosmetic consumption, along with the popularity of anti-aging products in Japan due to its demographic profile.”
Innovative beauty concepts originating from Asian countries are attracting the consumers globally. Prominent among them are K-beauty and J-beauty. Both J-beauty and K-beauty practices target bright and flawless skin. Individually, K-beauty idealizes chok chok (moist) or dewy skin with a glassy, translucent complexion, whereas J-beauty espouses mochi-hada (sticky rice cake) or shittori (moist) skin defined as soft, plump, and hydrated, along with bihaku (beautifully white) or bright skin tone.
Although, J-beauty and K-beauty concepts are similar by virtue of being offshoots of Asia, they differ significantly in their approach. J-beauty routine is based on less-is-more philosophy and follows a simpler process with fewer products, similar to Western beauty regimens.
Shagun adds: “J-beauty is all set to become the next big trend in the global cosmetics market as there has been growing demand of Japanese beauty products owing to perceived safety, better quality, simple regime and multi-functionality.
“J-beauty brands are harnessing innovative technologies to endow a modern touch to traditional beauty ingredients to remain aligned with evolving consumer trends and on-going clean beauty movement. Also, companies are focusing in omni-channel retailing with an aim to become a stronger brand reaching to wider customer base.”
For instance, Japanese cosmetics brand RMK recently announced its plan to launch a new flagship store on Chinese e-commerce giant Tmall to expand its sales capacity.
Another Japanese beauty brand Shiseido is developing Olivo Labs’ Synthetic Skin, a polymer-based material that can be applied as a second layer on the skin.
Sachdeva concludes: “Future opportunities for J-beauty will be to explore lucrative niches such as men’s cosmetics and beauty products that break gender conventions and appeal to the growing metrosexual male consumers. Brands can focus on long-term growth prospects by adopting digital and online marketing tools to drive widespread adoption.
However, it will be interesting to see several other beauty regimes such as Chinese beauty (C-beauty), Thai beauty (T-beauty), German beauty (G-beauty) and Australian beauty (A-beauty) emerging and giving close competition to well established K-beauty and J-beauty concepts.”