Innovative beauty concepts originating from Asian countries are capturing the imagination of consumers the world over, according to a new study by GlobalData.
Prominent among them are K- beauty (Korean), C- beauty (Chinese), T- beauty (Thai), Ayurveda (Indian) and the latest one is J- beauty (Japanese) concept, which is revolutionising the cosmetics industry not only in the Asia-Pacific (APAC) region but also across the globe as consumers prefer simpler, shorter and cleaner regimen.
According to GlobalData research, Japan is one of the world’s largest cosmetics and toiletries markets, with an overall market size of US$35.2bn in 2018. It is projected to grow at a compound annual growth rate (CAGR) of 3.5% over the period 2018-23. The per capita consumption of cosmetics & toiletries in Japan stood at 27.7 units in 2018, which was higher than the global (18.9 units) and regional (11 units) levels.
Rashmi Mahajan, Consumer Analyst at GlobalData, said: “Japan has the highest per capita expenditure in cosmetics when compared to other APAC countries. The per capita expenditure of cosmetics & toiletries in the country was US$280.4 in 2018, even higher than both the global (US$86.1) and regional (US$48.4) averages. The figures are specifically higher in haircare, make-up and male toiletries sectors when compared to other APAC countries.”
J-beauty is spreading beyond its domestic market, and the country’s cosmetics exports are increasing. With a host of established indigenous brands such as Shiseido, Pola Orbis, Kosé (Decorte), Shu Uemura, SK-II, DHC, Sekkisei, Shiro, GlobalData highlights that J-beauty products are carving out space in international retail aisles through partnerships with top offline and online retail chains. For instance, in 2019, Shiseido inked a co-production and distribution deal with A.S. Watson, one of the world’s largest health and beauty retailers, to meet the growing demand for J-beauty products across the Philippines, Indonesia, and China.
J-beauty regimen follows a ‘less is more’ philosophy by using a relatively small number of products that have active ingredients intended to be few but effective. Additionally, multi-functionality feature of Japanese cosmetics appeals to busy consumers who wish to save time and efforts during busier weekday mornings. According to GlobalData’s 2018 Q3 global consumer survey, 63% of consumers worldwide say that ‘how well products align with their time and money constraints often or always’ influences their beauty and grooming buying choices.
Mahajan concluded: “Digitally connected and fashion-forward young consumers are embracing distinctive new products/specific regimens from different countries. Consumers across the globe have seen how K-beauty trends have become a success in the international market. The ‘made in Japan’ or so-called ‘J-beauty’ products are benefitting from their perceived quality and are a big draw for discerning consumers, and brands can step up investments to increase their presence in the Asian and Western markets.”