The Malaysian skincare sector is expected to grow from RM1.96bn (US$469.8m) in 2019 to RM2.58bn (US$612.9m) by 2024, recording a compound annual growth rate (CAGR) of 5.6%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Skincare – Market Assessment and Forecasts to 2024’ reveals that the sector growth is primarily driven by growth in the facial care category, which is projected to register the fastest CAGR of 5.7%, in value terms during 2019–2024. The category is closely followed by make-up remover and body care categories, which are expected to record CAGRs of 5.3%and 5.2%, respectively during the next five years.

Anchal Bisht, Consumer Analyst at GlobalData, says: “A high per capita GDP, one of the highest in the region, is aiding Malaysians to spend more on personal care products, including skincare products, thereby driving growth in the sector. There exist opportunities for manufacturers in all socio-economic strata, with the middle class seeking affordable multi-functional skin care products while considerable prospects also emerge for premium products from consumers with higher disposable income”.

The report further reveals that ‘facial care’ was the largest category with volume sales of 95.2 million units in 2019. The category also led the sector in value terms with sales of RM1.66bn (US$398.2m) in the same year.

The per capita consumption of facial care products stood at 2.9 units in Malaysia, which is not just higher than other skincare products in the country, but also significantly higher compared to Asia-Pacific (APAC) and global levels.

Hypermarkets & supermarkets accounted for the highest share of 37.7% in the distribution of skincare in 2019. It is followed by health & beauty stores and chemist/pharmacies, which held shares of 22.3% and 12.3%, respectively in the same year.

L`Oreal S.A., Procter & Gamble and Shiseido Company Limited are the top three companies in the Malaysian skincare sector; while SK II, Shiseido and L`Oréal Paris are the leading brands in terms of value in 2019.

Bisht concludes: “Malaysians are among the highest internet users in the ASEAN region which is also emerging as a new platform for sales with growing ecommerce, driving demand in the sector. The medium is expected to pave way for more international brands to venture into the market and attract convenience seeking, internet savvy and discerning consumers, boosting sales in the sector.”