The demand for fairer skintone is driving an enduring popularity of suncare products.
The Japanese cosmetics and toiletries industry is expected to grow from $36.5b (JPY3.96t) in 2019 to $45.5b (JPY4.33t) in 2024, driven by a fast growth in the suncare sector, according to GlobalData. This translates to a compound annual growth rate (CAGR) of 1.8%.
The continued rise in demand for suncare products is attributed to the consumers’ high association of a fair skintone to beauty and protection from the UV rays, helping these hybrid products make their way into the beauty routines, GlobalData's consumer analyst Anchal Bischt explained.
The suncare sector is projected to register the fastest value CAGR of 2.5% during 2019–2024. The category is followed by skincare sector, which is projected to record a CAGR of 2.1% during the next five years.
“The availability of innovative products, unlike the run-of-the-mill sunscreen lotions, are not greasy or heavy, helped fuel demand. The aging Japanese society is lending traction to rise in the consumption of anti-aging products, which is playing a key role in driving demand for skincare products,” Bischt said.
The skincare sector also registered the highest volume sales of 1,210.6 million units in 2019. However, the suncare sector is projected to have the fastest volume growth at a CAGR of 1.2% during 2019–2024, followed by skincare and makeup.
Hypermarkets and supermarkets accounted for the highest share of 27% amongst the market's distribution channel in 2019. It is trailed by parapharmacies and department stores, which held shares of 20.8% and 10.4%, respectively.
Kao emerged as the largest player in the Japanese cosmetics and toiletries industry in 2019. It was followed by KOSE Corporation and Shiseido Company, Limited in the same year.
“Continued product innovations in these lines are fueling demand for advanced products, not just from Japanese consumers but also from inbound tourists, driving sector growth,” Bischt added.
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