Asia's the second largest cosmetics market after Europe, experts report

10-Jun-2015 - Last updated on 10-Jun-2015 at 11:17 GMT

According to the latest research from ApacMarket.com, Asia-Pacific is the second largest market for cosmetics after Europe, expected to reach $126.8 billion by 2020, registering a CAGR of 4.02%.

The firm's analysts report Asia to be one of the most diverse and dynamic cosmetics markets in the world.

The growing demand for products like body moisturizing lotions, sun screens, facial wipes and washes, hair styling gels, creams and even make up products for men is fueling the growth of the industry in the region.

"The increasing use is driven by the growing consciousness regarding personal appearance among individuals and rising disposable incomes. Additionally, demand for natural and organic cosmetic products is supplementing the growth of this market," says ApacMarket researchers.

Japan is king...

According to the firm, Japan will generate the highest revenue on the region and is in fact the second largest market in the global cosmetics industry.

This is in part, thanks to an increase in the adoption of cosmetic products among men in China, India and Japan.

When it comes to the global natural and organic personal care sector, fellow market analyst Florence Bernardin also reports Japan to be one of the major driving forces thanks to a change in consumption attitude.

Sustainability and corporate social responsibility are major drivers in the use of green ingredients for many companies in this decade and this in turn has had an effect on the type of skin care products being developed on the region now.

Meanwhile, ApacMarket.com reveals the skin and sun care category is widely used and generates the largest revenue for the AP cosmetics market.

In this category, Japan plays second fiddle to China though.

Retail and online are primary sources of sales

When it comes to sales, the firm's analysts report retail and online to be the two primary outlets for cosmetics.

"Presently, customers prefer supermarkets, brand outlets and other retail means to purchase cosmetic products and hence, the percentage share of retail sale is comparatively high."

A trend of using the online medium is expected to be on rise during the forecasted period, at a CAGR of 10.3%.