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Is your company ready to reap the benefits of the unprecedented opportunities provided by the emerging cosmetic and beauty industry in Asia?
Asia is a key strategic market for the cosmetic industry, projected to be worth approximately US$227bn by 2035 and with a forecasted CAGR of 5,84% between 2021 to 2035. Aside from its vast consumption of beauty products, Asia has recently become a source of innovation for the global beauty business, with the West notably attracted to K-Beauty (from Korea) and more recently, J-Beauty (from Japan).
Infographic 1: The Opportunities of the Growing Asian Cosmetic Market
The Difference Between Mature and Emerging Markets in Asia
Most Asian consumer health and pharma markets are incredibly varied, with each one presenting its own distinctive range of advantages, but there are a few crucial factors to consider.
Infographic 2: Mature & Emerging Markets in Asia
Moreover, It is necessary to look at some macro trends in Asia in order to have a detailed understanding of the wider beauty industry in the region.
- A growing middle class: a socioeconomic phenomenon present all over Asia, especially in China, where the segment accounts for more than 50% of the total population.
- Discovery and experience of new cosmetics: Asian consumers carry out extensive online research before purchasing, with an average of 8-9 touch points with a brand before purchasing, compared to 5-6 in the West.
- Asians are proactive about health and wellness: the Asian share of the cosmetics world market has soared. Indeed, the wellness and beauty business is thriving.
Industry-level Trends Driving the Rise of the Cosmetic Market in Asia
Firstly, the strong demand for skin care products–due to the rising worries about skin disorders–is propelling market expansion. In general, Asian skincare routines tend to be multi-step and complicated, often including several different brands.
Secondly, China’s fast-changing beauty market is constantly introducing industry-leading innovations, as well as setting trends regionally and globally. Particularly, products with claims such as moisturizing/hydrating, botanical/herbal, whitening, and anti-aging, account for a considerable number of product launches.
Third, the Asian cosmetic market is relatively fragmented, highly competitive, and without dominant players. So it represents an attractive opportunity for mid-sized companies from Europe, the U.S., and Latin America.
Fourth, the typical Asian consumer has different needs from their western counterparts. Individual identification is less important than group identity. This is especially vital for businesses entering the Asian market; they must consider how to gain credibility right away by working with a company already trusted by consumers.
Chameleon Pharma Consulting’s expertise extends to the systematic analysis of the Asian cosmetic and beauty industry. Based on the considerable knowledge of our multicultural experts in the cosmetic industry, as well as in the consumer healthcare and pharma industry and booming Asian markets, we assist our customers in getting a more profound knowledge of industry potential and opportunities in order to reap the benefits of a successful strategy.
Photo by Brooke Lark on Unsplash
Photo by David Gardiner on Unsplash
