21 Aug, 2019 Cosmetics & toiletries industry in Philippines forecast to be worth US$4.2bn in 2023, says GlobalDataPosted in Consumer
Fuelled by increasing disposable income on the back of growing employment levels, the cosmetics & toiletries industry in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 4.9% from ₱180.1bn (US$3.4bn) in 2018 to ₱228.8bn (US$4.2bn) in 2023, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Philippines Cosmetics & Toiletries’, reveals that haircare products held the largest value share of 28.4%, followed by skincare products with 26% in 2018. Suncare sector is set to grow at a fastest value CAGR of 8.2%, followed by skincare products with a CAGR of 7.9% between 2018 and 2023.
Shivangi Gupta, Consumer Analyst at GlobalData, says: “Increasing population and declining unemployment rates are driving the growth of the cosmetics & toiletries industry in the Philippines, as image-conscious consumers are increasingly opting for haircare and skincare products.”
The value share of the Philippines in the Asia-Pacific (APAC) region is expected to decrease from 2.1% in 2018 to 1.8% in 2023, mainly due to the projected faster growth of cosmetics & toiletries products among other leading countries in the region, such as China and India during the forecast period.
The per capita consumption (PCC) of cosmetics & toiletries in the Philippines, which stood at 8.4 units in 2018, was lower than both the APAC and global levels. It is expected to increase to 8.8 units by 2023.
Unilever, Procter & Gamble and Colgate-Palmolive were the leading market players in the Philippines while Cream Silk, Pond`s and Colgate were the top brands. Convenience stores was the leading distribution channel for the sales of cosmetics & toiletries products in the country while private label products accounted for a value share of 1.1% in 2018.
Gupta concludes: “Filipinos are increasingly seeking products that contain natural ingredients as they perceive them to be safer than those with chemical formulations. This demand for cosmetics & toiletries products with ‘100% natural’ claims will contribute to the future growth of the market.”