The Japanese cosmetics and toiletries industry is expected to grow from J¥3.96 trillion (US$36.5bn) in 2019 to J¥4.33trillion (US$45.5bn) in 2024, recording a compound annual growth rate (CAGR) of 1.8%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Japan Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’, reveals that the industry growth is driven by growth in the suncare sector, which is forecast to register the fastest value CAGR of 2.5% during 2019–2024. The category is followed by skincare sector, which is projected to record a CAGR of 2.1% during the next five years.

Anchal Bisht, Consumer Analyst at GlobalData, says: “The continued rise in demand for suncare products is linked to consumers’ high association of a fair skintone to beauty and protection from the UV rays, which helped these hybrid products make their way into the beauty routines. The availability of innovative products, unlike the run-of-the-mill sunscreen lotions, are not greasy or heavy, helped fuel demand. The aging Japanese society is lending traction to rise in the consumption of anti-aging products, which is playing a key role in driving demand for skincare products.”

The report further reveals that ‘skincare’ sector registered the highest volume sales of 1,210.6 million units in 2019. However, the suncare sector is forecast to register the fastest volume growth at a CAGR of 1.2% during 2019–2024, followed by skincare and make-up with CAGR 0.8% and 0.7% respectively.

Hypermarkets and supermarkets accounted for the highest share of 27.0% in the Japanese cosmetics and toiletries products distribution channel in 2019. It is trailed at a distance by parapharmacies/drugstores and department stores, which held shares of 20.8% and 10.4%, respectively in the same year.

Kao emerged as the largest player in the Japanese cosmetics and toiletries industry in 2019. It was followed by KOSE Corporation and Shiseido Company, Limited in the same year.

Ms Bischt concludes: “Obsession for beauty among the locals and their intricate beauty rituals combined with deep understanding of ingredients, growing desire for products with natural ingredients and focus on sustainability are contributing to the evolution of the sector. Continued product innovations in these lines are fueling demand for advanced products, not just from Japanese consumers but also from inbound tourists, driving sector growth.”