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Malaysian market for skincare to be worth $612.9 million by 2024

skincare

The Malaysian market for skincare is on a growth trajectory over the next four years, according to a report issued by Globaldata.

SEE ALSO : Amorepacific partners with skincare RATIONALE

According to the leading data and analytics company, the Malaysian market for skincare is expected to grow from US$469.8 million in 2019, to US$603.5 million by 2024, for a compound annual growth rate (CAGR) of 5.6%.

In the report, entitled ‘Malaysia Skincare – Market Assessment and Forecasts to 2024’, Malaysian skincare sales are currently driven by the facial care category, which is expected to record the fastest CAGR growth in value terms at 5.7% for the five-year period. Facial care is currently the largest category with volume sales of 95.2 million units in 2019. The category also led the sector in value terms with sales of US$398.2 million in the same year.

Last year, the per capita consumption of facial care products stood at 2.9 units in Malaysia; higher than other skincare products in the country, and significantly higher compared to Asia-Pacific and global levels.

The second area of future skincare growth toward 2024 is the make-up remover and body care categories, representing CAGRs of 5.3% and 5.2%, respectively.

“A high per capita GDP, one of the highest in the region, is aiding Malaysians to spend more on personal care products, including skincare products, thereby driving growth in the sector. There exist opportunities for manufacturers in all socio-economic strata, with the middle class seeking affordable multi-functional skin care products while considerable prospects also emerge for premium products from consumers with higher disposable income,” Anchal Bisht, Consumer Analyst at GlobalData.

As for distribution, hypermarkets and supermarkets accounted for the highest share (37.7%) in the distribution of skincare in 2019, followed by health and beauty stores and chemists and pharmacies, which held shares of 22.3% and 12.3%, respectively in 2019.

However, online is a major growth opportunity for skincare brands and retailers in the region.

“Malaysians are among the highest internet users in the ASEAN region, which is also emerging as a new platform for sales with growing e-commerce, driving demand in the sector. The medium is expected to pave way for more international brands to venture into the market and attract convenience seeking, internet savvy and discerning consumers, boosting sales in the sector,” said Bisht.

SEE ALSO : Malaysian brand Safi to expand into China

By brand, L’Oreal, Procter & Gamble and Shiseido are currently the top three companies in the Malaysian skincare sector, while SK II, Shiseido and L’Oréal Paris are the leading brands in terms of value in 2019, concluded Globaldata.

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