Growth of the Asia-Pacific (APAC) is being driven by an increasing number of women in the workforce and the growing spending power of consumers. The forecast for the make-up category is set to surpass US$21bn by 2023 according to GlobalData, a leading data and analytics company, in their report “Opportunities in the Asia-Pacific Make-Up Sector: Analysis of Opportunities Offered by High-Growth Economies.”
Mohammed Masiuddin Shajie, Consumer Analyst at GlobalData, said in a statement, “Due to increasing urbanization and the resulting time scarcity, there is a growing demand for easy-to-use cosmetic products that help save time.”
“There is a growing demand for make-up products without harmful ingredients or chemicals in the APAC region. In line with this trend, manufacturers are introducing products with natural ingredients and essential oils,” Shajie adds.
- The region will also record the fastest growth in both value and volume terms at compound annual growth rates (CAGRs) of 7.2% and 4.4%, respectively, during 2018–2023.
- Growth in the APAC make-up market is mainly driven by growing economies such as India and China, which are projected to register double-digit growth during the forecast period.
- Japan continues to be the largest market with a share of 36.3% in 2018, followed by China with 27.9%.
- According to the company’s unique scoring system, which involves risk-reward analysis of 12 major economies in the APAC region, Hong Kong, China, South Korea, and Australia are the highest-potential countries.
- Face make-up enjoys the majority share while lip make-up is forecast to register the fastest growth, in value terms, during the next five years.
- Per capita expenditure on face make-up products in APAC was US$2.3 in 2018, the highest compared to other categories, followed by lip make-up with US$1.3.
- L’Oréal S.A. leads the APAC make-up sector, followed by Shiseido Company, Ltd. and Kao Corporation.
- Maybelline is the leading brand in the eye make-up and lip make-up categories, while Kanebo and Revlon lead face make-up and nail make-up categories, respectively.
Shajie concludes, “As mobile browsing exceeds desktop use, sales of cosmetics through online channels is expected to increase further, particularly in countries such as China and India, where mobile penetration is growing at a high rate. However, sale of counterfeit products remains a major challenge in these countries.”
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