After being negatively affected by the COVID-19 pandemic in recent years, beauty and personal care was recording positive growth in real value terms in Asia Pacific in 2023. However, a difficult economic backdrop, such as high inflation resulting in rising costs and prices in Japan, was holding back the recovery from the pandemic losses in some countries. The forecast period is generally expected to see healthy annual growth rates in real value terms in the region.
This report comes in PPT.
While multinationals such as L'Oréal, Procter & Gamble, Unilever and Estée Lauder remain strong in China, local players are also increasingly enjoying success in their domestic market. Players such as Proya are leveraging advantages in terms of pricing and emotional appeal, using effective marketing strategies tailored to local consumer preferences.
Increasing digital engagement is boosting consumer knowledge of and focus on ingredients in beauty and personal care products among locals in India. Industry players are, in turn, highlighting key ingredients such as vitamin C, salicylic acid, niacinamide or hyaluronic acid in their campaigns and also remain on the lookout for more effective ingredients that align with consumers’ requirements.
While health and beauty specialists or even small local grocers remain important distribution channels for beauty and personal care in some countries, e-commerce continues to gain share. As of 2023, internet retailing was accounting for 40% of sales regionally and as much as 59% in South Korea. E-commerce platforms such as Douyin, Xiaohongshu or Pinduoduo are helping to drive competition and innovation as well as the entry of new brands in the Chinese market.
In late 2023, Shiseido, which is looking to strengthen its prestige skin care portfolio, announced the acquisition of Dr Dennis Gross Skincare, a US dermatologist-developed skin care brand, to tap into the growing dermocosmetics trend and strengthen its operations outside Asia.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.
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