Japanese consumers are displaying strong interest in personal care products filled with essential oils. Against this backdrop, the Japan skincare market is projected to grow at a compound annual growth rate (CAGR) of 1.1 percent from JPY 1,882.7 billion (USD 17.1 billion) in 2021 to JPY 1,985.6 billion (USD 20.5 billion) in 2026, forecasts GlobalData, a data and analytics company.
GlobalData’s report, ‘Japan Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’, reveals that the market growth is largely driven by the body care category, which is forecast to register the fastest value CAGR of 1.2 percent over 2021-2026, trailed closely by the facial care category with a projected CAGR of 1.1 percent.
Likitha Nalluri, Consumer Analyst at GlobalData, says, “The growing consumer interest in the health and beauty properties of essential oils are being exploited by cosmetics and personal care brands to develop natural formulations. Even as high-performance formulas with solid scientific feedback continue to hold interest among Japanese consumers, new products developed with natural ingredients such as essential oils have proved very successful in recent years.”
‘E-retailers’ was the leading distribution channel in 2021, followed by pharmacies/drugstores and hypermarkets & supermarkets.
The per capita expenditure (PCE) of skincare in Japan increased from USD 44.8 in 2016 to USD 67.8 in 2021, surpassing both the global average (USD 9.8) and the regional average (USD 9.2) by a large margin. The PCE on skincare in Japan will reach USD 82.5 in 2026.
Shiseido Company Limited, Kao Corporation and KOSE Corporation were the top three companies in the Japanese Skincare market by value in 2021. Shiseido and DHC were the leading brands of the year.
Nalluri concludes, “With the pandemic restrictions on public outdoor mobility being lifted, consumers are looking for convenient and time-saving skincare products that align with their hectic lifestyles. Multifunctional cosmetics that are suitable for on-the-go use are thereby gaining favour among urban consumers. Simultaneously, the demand for high-end customised products is booming.”
(Source: GlobalData )