Ingredients over brands: APAC consumers willing to pay up for science-backed beauty

As the lines between health and beauty continue to blur, consumers in the Asia-Pacific (APAC) region are increasingly prioritising scientifically formulated beauty products over traditional brand names, according to new data from research firm Euromonitor International.

The study found that 49 percent of APAC consumers said they would pay an additional 10 to 50 percent for beauty products that boast scientific formulations.

This trend has fuelled rapid growth in the dermocosmetics market – products conceptually centred around unique, clinically-backed ingredients – which saw a compound annual growth rate of 15 percent in APAC from 2018 to 2023, surpassing the global average of 12 percent.

“The future of innovation in beauty products will continue to be ingredient-driven,” explained Yang Hu, Insights Manager of Health and Beauty in Asia at Euromonitor.

“As the lines between health and beauty become blurred, more health-related ingredients will be researched to unlock their potential in beauty, with science-backed evidence.”

The APAC region’s top beauty markets, including China (20 percent), Thailand (17 percent), South Korea (14 percent) and India (10 percent), all demonstrated robust double-digit growth in this period.

Euromonitor’s 2023 Voice of the Consumer: Beauty Survey found that around 30 percent of APAC respondents perceived proven efficacy and medical endorsements as traits of premium beauty products.

Meanwhile, 38 percent of APAC consumers viewed premium ingredients as more important than premium brands when it comes to skin care, while only 23 percent said brands come first.

Multi-functional products seen as more attractive

This shift in consumer perceptions is driving major changes in the beauty landscape. Multifunctional products that streamline routines and offer cost savings are in high demand, blurring the boundaries between categories like skin care, sun protection and colour cosmetics.

The e-commerce boom has also transformed the industry, with social media platforms like China’s Douyin emerging as powerful sales channels that give smaller brands access to wider consumer bases, especially in lower-tier cities.

“The beauty market in Asia Pacific is now faced with incredible possibilities that lie ahead for the industry – not only with increasing purchase power and changing demographic, but also with the market’s evolution of its growth engine through retail channel revolution, innovative brands and technological breakthroughs,” Hu added.

To stay competitive, industry players must adapt to these rapidly evolving consumer preferences and market dynamics, Hu said, keeping a close eye on environmental factors, generational shifts, and developments in the broader wellness sector.