Premium products that claim to use sophisticated formulas are gaining traction.
A rise in demand for suncare products is expected to drive the Philippines' cosmetics and toiletries sector, which is projected to grow from $3.63b (₱189.5b) in 2019 to $4.45b (₱239.1b) by 2024 with a compound annual growth rate (CAGR) of 4.8%, according to GlobalData.
The suncare sector is expected to register the fastest value CAGR of 7.4% during 2019–2024. It is followed by skincare and makeup sectors, which are expected to record CAGRs of 6.7% and 6.2%, respectively.
Meanwhile, personal hygiene recorded the largest sector with volume sales of 295.7 million units in 2019. However, the suncare sector is tipped to register the fastest volume growth at a CAGR of 4.9% during 2019–2024.
A growing interest in achieving and maintaining fair complexion, supported by skin whitening and protection from UV rays, contributed to a strong growth in demand for suncare products, GlobalData's consumer analyst Anchal Bisht said.
“Whilst affordable options continue to reign supreme, premium products that claim to use sophisticated formulations for superior results are also gaining traction thanks to growing consumer awareness and needs,” Bisht added.
Furthermore, a relatively young population, burgeoning middle class, rapid urbanization, and rising income levels have made the Philippines a burgeoning market of shoppers with evolving needs, Bisht said.
“Increasing presence on social media and its influence on consumer purchasing decisions presents significant opportunities for local and international companies to further educate consumers and expand business in the coming years,” she said.
Convenience stores are the leading distribution channel in the Filipino industry, with a value share of 26.9% in 2019, closely followed by hypermarkets and supermarkets and health and beauty stores.
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