12 Aug 2019
Posted in Consumer
Malaysia’s Cosmetics & Toiletries industry poised for modest value CAGR of 4.2% over 2018–2023, says GlobalData
A steady economic growth driven by strong domestic demand and private consumption is boosting the Malaysia’s Cosmetics & Toiletries industry, which is expected to grow at a compound annual growth rate (CAGR) of 4.2% from RM6.4bn (US$1.6bn) in 2018 to RM7.9bn (US$2.1bn) by 2023, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Country Profile: Cosmetics & Toiletries in Malaysia’, reveals that skincare products held the largest value share of 29.3%, followed by haircare products with 16.9% in 2018. Make-up category is set to grow at the fastest value CAGR of 4.71%, followed by feminine hygiene products with a value CAGR of 4.65% during 2018–2023.
Shivangi Gupta, Consumer Analyst at GlobalData, says: “Increasing population and employment levels is driving the growth of the industry in Malaysia, as consumers become more image conscious thus opting for cosmetics and toiletries products”.
Malaysia’s value share in the Asia-Pacific (APAC) region is expected to decline marginally from 1% in 2018 to 0.9% by 2023. The per capita consumption (PCC) of cosmetics and toiletries in Malaysia, which was 13.6 units in 2018, is forecast to increase to 14.7 units by 2023, above the APAC levels, but below global levels.
Unilever, L`Oreal S.A., and Procter & Gamble were the leading market players in Malaysia while Colgate, Shiseido, and SK II were the top brands. Hypermarkets & supermarkets and chemists/pharmacies were the key channels for purchasing cosmetics and toiletries products in Malaysia while private label products accounted for a low penetration level of 0.03% by value in 2018.
Gupta concludes: “As discerning consumers in Malaysia are growing more conscious of the harmful effects of chemicals used in cosmetics and toiletries, the demand for products with ‘natural’ claims are set to rise in the future.”