The Asia-Pacific health and beauty market is projected to record a value compound annual growth rate (CAGR) of 4.7 percent over 2022–27, on the back of improving macroeconomic conditions, new product launches, a rise in online shopping, and increased manufacturer investment, according to a new report.
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Moreover, the introduction of new personalised, natural or organic, and multi-functional products will spur market premiumisation in the coming years, according to research group, GlobalData.
The report entitled, ‘Opportunities in the Asia-Pacific Health and Beauty Industry’, revealed that APAC was the largest regional market for health and beauty in 2022. However, the region’s per capita expenditure on health and beauty products sat at USD 45.2 in 2022, lagging the global average of USD 69.5, and the Western regions.
In 2022, skincare was the dominant sector in the APAC region, with male toiletries predicted to register the fastest value CAGR at 7.7 percent over 2022–27, followed by fragrances, added GlobalData.
By brand, Procter & Gamble was the leading manufacturer in 2022 in the Asia-Pacific health and beauty industry, followed by Unilever and L’Oréal.
“The Asia-Pacific economy is recovering from the brunt of Covid-19 and the cost-of-living crisis, powered by rising demand in China, India, and other emerging economies in the region,” said Shraddha Shelke, consumer analyst at GlobalData.
“Rising household disposable incomes, surging public outdoor activities, and the increasing foreign tourist influx are fuelling demand for premium health & beauty products.
“E-commerce sales are on the rise in the APAC region, with startups and major corporations launching direct-to-consumer health & beauty brands. For instance, in late 2021, Hindustan Unilever launched five digital-first premium beauty brands: Love Beauty & Planet, Simple, Baby Dove, Acne Squad, and Find Your Happy Place,” added Shelke.
“Online retailers, such as Nykaa and NewU, benefit from the wide choice of products and applications offered in their digital stores, such as virtual mirrors and artificial intelligence (AI) scanners. As a result, e-retail was the leading distribution channel in 2022 in the APAC health and beauty industry, surpassing hypermarkets ad supermarkets, and convenience stores.”
Looking ahead, consumers’ preference for digital shopping, which surged during the Covid-19 pandemic, is expected to hold its weight over consumers due to convenience.
Moreover, the incorporation of virtual reality into digital platforms is providing consumers with a shopping experience that is almost similar to physical shopping, concluded GlobalData.