Asia-Pacific Beauty Market Poised for Rebound Amid Shifting Consumer Preferences
The Asia-Pacific beauty and personal care market,a significant global force with $183 billion in total sales,is projected to rebound and achieve a 3 percent annual growth rate over the next five years,following a modest 1.4 percent expansion in 2024. This region currently represents 31 percent of the worldwide beauty and personal care market.
While the overall market shows resilience, certain product categories within the beauty sector, such as fragrance, hair care, and skin care, are demonstrating stronger performance even without explicit sustainability claims.This suggests that for some consumers, efficacy and other product attributes may take precedence over environmental considerations in these specific areas.
Looking at regional performance, Southeast Asia, excluding Singapore, is anticipated to led the growth trajectory, with an expected annual expansion of 5 percent over the coming half-decade. Skin care continues to be the dominant category across Asian markets, accounting for half of the total market share.Despite the ongoing rise of e-commerce,which has seen a ample increase from 19 percent to 30 percent penetration in the last five years,customary offline retail channels are also making significant gains. Warehouse clubs, convenience stores, and variety stores are proving to be effective avenues for beauty product sales, indicating that consumers still value the in-store experience and seek cost-effective purchasing options.
China, a pivotal market within the global beauty industry, experienced a 2 percent contraction in 2024, with sales reaching $75 billion. Though, this slowdown has been accompanied by pockets of growth in specialized segments. Dermacosmetics, sun care, and children’s skin care products are emerging as areas of increased consumer interest, reflecting evolving priorities.Industry experts suggest that the Chinese beauty market’s growth is heavily influenced by robust marketing efforts. Brands willing and able to invest in marketing strategies have significant potential to stimulate demand and drive renewed market expansion.
The competitive landscape in the Asia-Pacific beauty market remains concentrated among major players, including L’Oréal, P&G, Estée Lauder, Shiseido, and Proya. Despite the overall market dynamics, several brands, such as Kato-kato, hapsode, and Komfymed, have successfully navigated the market to achieve growth in 2024. Moreover, Neochild and Bodorme have been identified as rapidly expanding brands in the children’s skin care segment. This growth in the children’s segment is notable, even amidst a declining birth rate in China, as it is indeed driven by a trend towards premiumization in baby products.
