Growing middle-class in Malaysia is driving premiumization of the country’s make-up sector. This in turn is driving the sector, which is forecast to grow at a compound annual growth rate (CAGR) of 5.2% from RM0.7bn (US$0.2bn) in 2020 to RM0.9bn (US$2.2bn) in 2025, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Make-up – Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the eye make-up category, which is forecast to register the fastest value CAGR of 5.3% during 2020–2025. The category is followed by face make-up, which is projected to record a CAGR of 5.2% during the same period.

Sukanyashri Kabali, Consumer Analyst at GlobalData, says: “Malaysia’s growing middle-class and increasing disposable income is giving way to a bigger market for premium products and aspirational brands. Luxury make-up brands are leveraging this market potential by introducing premium offerings. For instance, Bobbi Brown, a premium American make-up brand, recently launched a limited-edition make-up line using its best-selling Pink Glow shade in Malaysia.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Malaysian make-up market in 2020, followed by chemists/pharmacies and health & beauty stores.

The per capita expenditure (PCE) of make-up in Malaysia increased from US$4.5 in 2015 to US$4.9 in 2020, which was higher than the regional level (US$4.3) and lower than the global level (US$7.5). Furthermore, the per capita expenditure of make-up in Malaysia is expected to increase and reach US$6.2 in 2025.

​L’Oréal S.A., The Estee Lauder Companies Inc. and Natura &Co were the top three companies in the Malaysian make-up market by value in 2020, while Silkygirl and L’Oréal Paris were the leading brands.

Ms. Kabali concludes: “E-commerce growth is a major driver for make-up products presenting new opportunities for marketing and sales. The increasing online demand for beauty products in Malaysia led Air Asia to launch a separate Air Asia Beauty platform in 2021, offering to deliver authentic beauty products at home.”