The Asia-Pacific cosmeceuticals market was valued at USD 59.7 billion in 2018, and the market is projected to register CAGR of 6.8% during the forecast period, 2019-2024. In the region, countries- like China, India, and Vietnam present considerable growth opportunities for the market players, primarily due to the growing millennial population. Furthermore, high awareness regarding cosmeceutical and cosmetics products, such as anti-aging, sun care, and hair care products, is expected to drive the market’s growth in the near future. The demand for multifunctional products is driving innovation, as price-conscious consumers are opting for products that provide both hydration and skin protection. Companies are constantly advertising about cosmetics that provide medicinal benefits, especially on social networking sites, such as Facebook, Twitter, YouTube, and Instagram, where beauty bloggers are very popular.
Scope of the Report
The cosmeceuticals market involves the increasing category of cosmetic products that have drug-like benefits. These products are fast outpacing all other product segments in the personal care and cosmetics industry, because of the growth rate.
Key Market Trends
Increasing Demand for Sun Care Products
A key factor driving the growth of the studied market is the adverse effects of exposure to ultraviolet (UV) radiation caused by global warming. Awareness of the effects of UV radiation on the appearance and health of the skin propels the demand for sunscreen products. Sun protection is not limited to regular sun care products, due to the emergence of multi-purpose products. To meet these evolving consumers needs, vendors are adding new and innovative sun care products to their existing product lines, which, in turn, is boosting the market growth across the region. To raise more awareness of the importance and benefits, using sun care products across the region, vendors are educating consumers about such products through television, social media, online channel, and awareness campaigns. Therefore, with such initiatives and beliefs, the sun care products market is expected to witness a positive outlook, during the forecast period.
China Dominates the Cosmeceuticals Market
The Chinese cosmeceuticals market is projected to register an estimated CAGR of 6.9%, over the forecast period. Though the term ‘cosmeceuticals’ started gaining momentum in China recently, it has now become one of the most preferred product categories in the country. Busier and stressful lifestyles of consumers in the country, as well as worsening environmental conditions, created more concern around skin conditions, amid consumers who seek products for skin rejuvenation. This has led to an increase in sales of cosmeceuticals. Consumption of cosmeceutical products in China is most prevalent in tier 1 megacities of the country, with increasing penetration in tier 2 and tier 3 cities, which are experiencing an increase in China’s growing middle class and the consumption of cosmeceuticals in the country. Although a portion of consumers in China are willing to pay for branded or premium products, consumers tend to be less loyal to brands and more price-sensitive, when compared to the consumers in the United States or European counterparts. This has led to an increase in the overall revenue generated through the product category. Multinational companies continue to dominate the cosmeceuticals market in the country, and most of the companies operating in the country are foreign brands. The three largest suppliers of cosmeceuticals in China are Procter and Gamble, L’oreal, and Shiseido. This trend is also reflected in domestic production, with a majority of production catered via foreign-owned or joint ventures.
The Asia - Pacific cosmeceuticals market enjoys the presence of various global and regional players, including private labels. The market studied was led by L'Oréal SA, followed by Procter & Gamble Co, Estee Lauder, Shiseido Group, Unilever PLC, Avon Products Inc., and Johnson & Johnson. The other prominent players in the market include Beiersdorf AG, Clarins Group, Royal DSM, Croda International PLC, and Revlon Inc. among others. The prominent players have been observed to incorporate a few major strategies to target the consumers in the region, such as branding of the internet through strong digital marketing operations, social media campaigns to gain consumer’s attention, and the establishment of regional hubs in the most developed economies of the region, such as Southeast Asian countries, like Singapore.
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