ASIA PACIFIC FACIAL CARE MARKET ANALYSIS

Asia Pacific facial care market is estimated to be valued at US$ 52.0 billion in 2023 and is expected to exhibit a CAGR of 7.2% during the forecast period (2023-2030).

Analysts’ views on Asia Pacific Facial Care Market:

Increasing awareness on aesthetic appearance and skincare, new product launches, and strategies like mergers, acquisitions, and collaboration are expected drive the Asia Pacific facial care market growth over the forecast period. For instance, according to the data shared by World Bank on Female Labor Force Participation on January 10, 2022, worldwide, there is nearly 47% women force while in Asia Pacific region the percentage is nearly  67%. This increases the demand for skin care products from working professionals. This can drive growth of market. Also as working women population increases, the purchasing power will also increase, this can drive market growth in forecast period.

Figure 1. Asia Pacific Facial Care Market Share (%), By Product Type, 2023

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Asia Pacific Facial Care Market– Drivers

Increasing strategies like partnerships by key market players

Increasing strategies like partnerships by key market players is expected to drive the Asia Pacific facial care market growth over the forecast period. For instance, on March 3, 2021, Coty Inc., a U.S. based multinational beauty company announced it has signed a letter of intent to partner with LanzaTech, a U.S.- based carbon recycling technology global leader to introduce sustainable ethanol made from captured-carbon emissions into its fragrance products. The proposed partnership means that Coty Inc. will incorporate this carbon-captured ethanol into its fragrance manufacturing process, with the goal of having the majority of its fragrance portfolio using ethanol sourced from carbon-capture by 2023.

Increasing launches of new products for facial care

Increasing launch of new products for facial care is expected to drive the Asia Pacific facial care market growth. For instance, on June 1, 2022, Shiseido Co., Ltd., a Japan based cosmetics group, launched a new men’s skincare brand called Sidekick. The line, featuring four products and eight inventory items, is aimed at the Asian market, chiefly targeting Gen Z consumers. The Sidekick range combines natural ingredients and advanced cosmetics research to address issues like dry or oily skin, but it also helps boost the skin's moisture barrier function by creating a more resistant skin environment. The line consists of a face cleanser, a lotion, a moisturizer and a fabric mask.

Figure 2. Asia Pacific Facial Care Market Share (%), By Country, 2023

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Asia Pacific Facial Care Market- Country Analysis

Among country, China is estimated to hold a dominant position in the Asia Pacific facial care market over the forecast period, owing to increasing launches of products. For instance, on October 14, 2021, Sephora Digital SEA Pte Ltd, a China-based prestige beauty retailer, released more than 240 new beauty products from 51 brands, revealing the newness of 7 C-beauty brands and the domestic debut of 5 overseas niche brands. Sephora unveiled 6 Fall/Winter global beauty trends— Landscape Hues, Radiant Skin, Fragrant Wonderland, Eyes of Blues, Sustainable Beauty and Dancing Hair.

Asia Pacific Facial Care Market– Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, the U.A.E., Egypt, and others faced problems regarding transportation of drugs from one place to another.

However, the COVID-19 pandemic had negative impact on the Asia Pacific facial care market, due to reduction in demand for facial care products. For instance, according to a report published by the International Spa Association (ISPA), a U.S.-based educational resources and research provider for spa professionals, 52% of spas owners and operators reported its business has been significantly impacted, while 38% have reported a detrimental impact on business due to the Coronavirus pandemic. This impact is mainly due to lockdown and social distancing measures suggested to fight against COVID-19.

Asia Pacific Facial Care Market- Segmentation:

Asia Pacific facial care market report is segmented into product type, consumer group, distribution channel, and country.

Based on Product Type, Asia Pacific facial care market is segmented into skin whitening/lightening and anti-ageing creams, facial creams, face wash, cleansing wipes, serums and masks, and others. Out of which, the skin whitening/lightening and anti-ageing creams segment is expected to dominate the market due to increasing launches of anti ageing and skin whitening creams.

Based on Consumer Group, Asia Pacific facial care market is segmented into male and female. Among these, women segment is expected to dominate the market over the forecast period due to increasing products of facial care for women.

Based on Distribution Channels,  Asia Pacific facial care market is segmented into store-based retailing and non-store based retailing. Among these, store-based retailing segment is expected to dominate the market over the forecast period due to increasing number of store-based retailing.

Based on Country,  Asia Pacific facial care market is segmented into China, Japan, India, Australia, South Korea, ASEAN, and Rest of APAC. Among these, China is expected to dominate the market over the forecast period due to increasing launches of facial care products.

Among all segmentation, the product type segment has the highest potential due to increasing launches of products by the key market players. For instance, on August 8, 2021, ONLY SKIN LLC, a Singapore-based cosmetic company, announced that it has developed a wash on sunscreen, Cleanse Protect Renew (CPR)  that can offer convenient 24 hour wash-to-wash protection. It enables 24 hours broad spectrum protection of harmful UV rays without any need of reapplication. Clinical trials showed the product can remain for 8 hours and the sunscreen remains on skin even after contact with water.

Asia Pacific Facial Care Market Cross Sectional Analysis:

Product type segment is expected to show growth in Japan owing to introduction of newer products and technologies in facial care by key market players.  For instance, on January 17, 2023, POLA Orbis Holdings Inc., a Japan-based beauty brand introduced its first skin care range for people in their 60s. This mid-range skin care brand launches pro ageing skin care with products lines, such as Orbis U and Orbis U dot.

Asia Pacific Facial Care Market: Key Developments

On March 14, 2021, Kao Corporation, a Japan- based hair salon brand L’Oréal Group, France based personal care company announced launch of an Omni channel concept store in collaboration with AKQA, a U.S.-based digital design and communications agency in Shanghai. It gives discount points, provide visitors with a personalized experience to cultivate better relationship with customers.

On June 29, 2021, Hindustan Unilever Ltd, a India- based maker of packaged goods, announced to scale up the online reach of several premium brands through standalone branded sites as well as its multi-brand shopping platform UShop. This digital infrastructure will consist of all brands such as Love Beauty and Planet, Simple, Horlicks, etc.

On August 2, 2021, Unilever, a U.K.-based nutrition, hygiene, and personal care brand, announced it has completed the acquisition of Paula’s Choice, a U.S.-based research-based digital-led skin care brand. Terms of the deal were not disclosed.

On July 24, 2021, The Big Bloomers Company, a U.K.-based clothing brand company, launched a new brand, colors cosmetics in India. The brand offers wide range of products encompassing everything from a foundation to lipstick. They aim to bust the misconception that drug store makeup is low in price and inferior in quality. These ingredients are gentle to the skin and work to improve its quality. The manufacturers have taken all skin tones into account and come up with a shade card that includes almost all hues from the color wheel.

Asia Pacific Facial Care Market: Key Trends

Introduction of newer products by key market players

Introduction of newer and more efficient products by key market players can drive growth of market. For instance, on October 19, 2021, Me Today, a New Zealand-based skin care brand launched 22 biople stores in Japan. It will launch eight skin care products in Biople by CosmeKitchen, China based natural and organic beauty select shop. The products contains plant collagen and botanical oils, these are 100% natural and enriched in vitamins, omega-6 and omega-9 as well as docosahexaenoic acid (DHA) according to the company.

Strategies like securing funding’s by key market players

On November 14, 2022, Topicals, a U.S.-based skincare products company, announced the closing of a US$ 10 million financing round led by Cavu Consumer Partners, with further backing from the likes of Kelly Rowland, Gabrielle Union and Hannah Bronfman. The company announced that would be using the funding to accelerate its Omni channel growth, appoint new hires, support channel expansion and drive brand marketing awareness. It will also continue to rise awareness on link between mental health and skin condition. To build on this mission, the company is launching a 12-month accelerator programme focused on supporting nonprofits in the mental health space through leadership training, mentorship and business advisory.

Asia Pacific Facial Care Market: Restraints

Recalls of facial care products

The recalls of facial care products is expected to hamper the Asia Pacific facial care market growth. For instance, on July 15, 2021, Johnson & Johnson Private Limited, a U.S.-based medical devices, pharmaceuticals, and consumer packaged goods manufacturing company, issued voluntary recall of 4 Neutrogena brand sunscreens and 1 Aveeno brand sunscreen. This is because the benzene was detected in some samples of aerosol sunscreen finished products. 

To counterbalance this restraint, more strict safety evaluations should be done to avoid recalls.

Side effects of facial care products on environment

The side effects associated with facial care products is expected to hamper the Asia Pacific facial care market growth. For instance, according to an article published in Environmental Research on January 2, 2021, Cosmetic items contain chemicals, like parabens, formaldehyde, pthalates that can hurt an individual's skin or other sections of the body as well as environment. Furthermore, using cosmetic items daily may be harmful to the skin. Chemicals used as ingredients in cosmetic goods can have various negative skin consequences. The micro plastic present in the cosmetic and facial care products shows serious side effects on environment and contamination of water bodies. With increasing global demand of cosmetic products, the pollution of marine and freshwater has increased, resulting in the continuous pollution of soil and water by micro plastics, which is further exacerbated by the weathering of the plastic surface that promotes the sorption of pharmaceuticals and personal care products (PPCP) contaminants. Nevertheless, the fate of PPCP caused micro plastics and its Eco toxicological effects on biota, especially health risks for humans, are still not well understood.

To counterbalance this restrain, more environment friendly products should be manufactured.

Asia Pacific Facial Care Market- Key Players

Major players operating in the Asia Pacific facial care market include L’Oreal S.A, Procter and Gamble Company (P&G), Estee Lauder Companies Inc., The Unilever Plc, Shiseido Co. Ltd., Johnson and Johnson Limited, Kose Corporation, and Kao Corporation.

*Definition: Facial care products are used to get rid of bacteria, dirt and pollutants. Products such as serums contain antioxidants and anti-aging ingredients, such as retinols and peptides, which stimulate collagen production. Face masks are used to hydrate, dry, or brighten the skin. These masks are available for all skin types.