The facial care market in Asia Pacific is expected to reach US$39.75 billion by 2019, growing at a compounding annual rate of 6.9 per cent from 2013 to 2019.
That’s according to a report by Transparency Market Research, owing the demand on the growing popularity of multi-functional products.
Women’s obsession for fairness is a major contributor to the demand for the facial care product in the region, and thus making them the biggest consumer group. The widening of distribution network, specifically retail stores and online retail websites, is bolstering the growth of this market, it says.
Currently, many companies such as Hindustan Unilever, The Procter and Gamble Company, and L’Oreal, are focusing on direct sale management to create a powerful sales network, especially in the fast growing markets, across emerging countries of Asia-Pacific. Countries such as China, India, Japan and South Korea, are center for most of the new product launches and business ventures.
Factors such as the introduction of new product segments, especially for men consumer group, and trend of online retailing are opening new potential opportunities for the Asia Pacific facial care market to grow, says the report.
In terms of demand contributed by different consumer groups, the men’s segment is expected to be the fastest growing during the forecast period, due to men’s changing attitude towards these products. A social consumer behavior shift towards acceptability of male grooming and personal care products has helped latent demand for men facial care products to evolve over recent years.
Retail distribution is moving more towards store-based retailing rather than to non-store based retailing, such as direct marketing. Store based retailing is expected to maintain its leading position throughout the forecast period from 2013 to 2019 due to fast expansion of store networks by leading retail chains.
China and Japan together dominated the Asia-Pacific facial care market, and accounted for 80 per cent of market revenue share in 2012. This dominance is driven by huge consumption and demand for new and premium product launches and widening distribution channels.
India is expected to be the fastest growing country in coming years fueled by the growing population and the increasing demand for fairer skin among both men and women in India.