Retail in Asia


Malaysia skincare market to grow 4 percent

The Malaysian skincare market is expected to grow from MYR 2 billion (USD 485.1 million) in 2021 to MYR 2.5 billion by 2026 at a compound annual growth rate (CAGR) of 4.1 percent during 2021–2026, according to GlobalData.

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According to the data and analytics, the sale of premium skincare products is likely to increase in Malaysia, with the impact of Covid-19 slowly fading and household incomes rising in nation.

Meanwhile, multinational brands are stepping up research and development efforts to launch innovative new products to tap the Malaysian market.

“Industry growth will be driven by the economic recovery, rising per-capita incomes, and normalization of social life following the Covid-19 induced lull, which will prod consumers to step up spending on skincare products. Halal cosmetics continue to attract a large following in Malaysia,” said Anush Shaw, analyst at GlobalData.

“Moreover, the ballooning elderly populace of 65+ years is driving demand for anti-aging and pore strips creams. Opportunities abound for companies to capture the revival in public out-of-home mobility with innovative natural formulations in convenient on-the-go formats,” added Shaw.

By category, facial care is set to register the fastest value CAGR of 4.3 percent over 2021–2026, trailed closely by the body care category with a projected CAGR of 4.1 percent over the forecast period.

By brand, SK-II and Shiseido​ were the top brands for Malaysian consumers in 2021, while Procter & Gamble, L’Oréal S.A., and Shiseido Company were the leading companies in the Malaysian skincare sector in value terms.

Moreover, against the backdrop of growing consumer awareness about the damaging long-term effects of harsh chemicals used in skincare products, the demand for products with natural and organic ingredients will rise in Malaysia, according to GlobalData.

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“Owing to the growing concern about the safety of skincare products for their own use and their family members, Malaysians are going online more often to check product reviews of customers and beauty experts. The onus lies on manufacturers and marketers to educate consumers about the safety of their products through social media portals and digital advertisements,” said Shaw.