02 Nov 2020
Posted in Consumer
Philippines’ cosmetics & toiletries industry to reach US$4.45bn by 2024, says GlobalData
The cosmetics & toiletries sector in the Philippines is projected to grow from ₱189.5bn (US$3.63bn) in 2019 to ₱239.1bn (US$4.45bn) by 2024, with a compound annual growth rate (CAGR) of 4.8%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Philippines Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’ reveals that the industry is significantly driven by the growth in the ‘suncare’ sector, which is forecast to register the fastest value CAGR of 7.4% during 2019–2024. The sector is followed by skincare and make-up sectors, which are expected to record CAGRs of 6.7% and 6.2%, respectively.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Growing interest in achieving and maintaining fair complexion supported by skin whitening and protection from UV rays underpins strong growth in demand for suncare products. While affordable options continue to reign supreme, premium products that claim to use sophisticated formulations for superior results are also gaining traction thanks to growing consumer awareness and needs.”
The report further reveals that personal hygiene was the largest sector with volume sales of 295.7 million units in 2019. However, the suncare sector is forecast to register the fastest volume growth at a CAGR of 4.9% during 2019–2024, followed by skincare and make-up with CAGRs of 4.7% and 4.2%, respectively.
Convenience stores are the leading distribution channel in the Filipino cosmetics & toiletries industry, with a value share of 26.9% in 2019, closely followed by hypermarkets & supermarkets and health & beauty stores.
Unilever, Procter & Gamble and Colgate-Palmolive Company Limited are the leading players in the Filipino cosmetics & toiletries industry. Cream Silk, and Ponds are the most popular brands in Philippines. On the other hand, private labels held a value share of just 0.1% in the overall Filipino cosmetics & toiletries industry in 2019.
Ms Anchal concludes: “A relatively young population, burgeoning middle class, rapid urbanization, and rising income levels make Philippines a burgeoning market of shoppers with evolving needs. Brighter prospects lie ahead for sector growth given relatively lower historical demand, rising interest and awareness in beauty products and predicted healthy economic growth. Increasing presence on social media and its influence on consumer purchasing decisions presents significant opportunities for local and international companies to further educate consumers and expand business in the coming years.”