Sunny Um, Beauty & Fashion Analyst at Euromonitor International delivered a speech at the recent in-cosmetics Asia event on the main drivers pushing Asia’s leading position in the global skin care industry. We delve into the research company’s report to explore how this prominent sector is expected to develop.
Asia leads skin care
Asia remains the dominant player in global skin care sales, amassing 51% of the world’s value sales and 6% compound annual growth rate (CAGR) between 2012-2017.
Current dominating trends will get a facelift in 2018 as brands strive to upgrade existing products. Companies will slightly modify and transform products from recognisable and popular mainstream items to answer niche preferences and “create new needs”.
K-beauty wave
The K-beauty phenomenon is an example of a core trend where this approach is expected to take hold. Brands will achieve this by extending the practical, performance-based elements of items to expand their multifunctional offerings.
Carver Korea, for example, has already spearheaded this approach by releasing an eye cream for the face.
The sheet mask area is another primary segment, which will see a lot of movement following this approach. CNP Laboratory has recently released its two-step mask and Innisfree has innovated its one-minute face mask. Mediheal has also created its target-solution face mask to tackle specific consumer needs.
Looking to 2018, K-beauty product developers and marketers will also seek to create synergy between the successful and ongoing media hype around beauty in the country. This will occur alongside the wave of K-beauty popularity across the world and the conscious efforts of consumers to look good.
Pitching products
APAC brands will explore genderless product positioning, where marketing campaigns will target female consumers to tackle the male market.
With the surge in demand for personalisation in cosmetics in 2017, this trend will see brands hone their offerings in 2018. They will seek to provide today's connected and educated smart consumers with an answer to changing lifestyle values and the one-size-fits-all approach to instead, offer custom formulations.
In-store consultations will also prove popular for brands looking to improve the physical store experience for consumers. Skin Inc has achieved this by offering a skin identity test, while store laboratories’ such as Laneige’s lab provide one-to-one custom services.
At-home do-it-yourself items are equally as hot as brands diversify their offerings to provide DIY goods, formulators and add-on items.
LOLI Beauty has released its DIY subscription package, “Beauty Box”. BareMinerals also released an add-to-cleanser exfoliator and Clinique launched its add-to-moisturiser item. Nu Skin has also released its “ageLOC Me” custom serum formulator to give consumers both convenience and efficacy.
In the near future
Skin care value sales and growth between 2012-2017 revealed that mass value sales, which stood at 6% in APAC have surpassed premium value sales at 5%. Facial moisturisers are the key driver of this growth, while face masks have grown at the fastest rate. Variations including sheet masks and dry masks have fuelled innovation and development too.
Future projections reveal that Asia will “continue to lead the global skin care sales” with global value sales of 51% and a CAGR of 4% between 2017-2022.