The size of the Asia-Pacific cosmeceuticals market is estimated to be worth USD 28.46 billion by 2026, growing at a CAGR of 8.68% during the forecast period.
The growing demand of the newer young generation and the increase in the middle-aged population in the APAC region is driving the growth of the cosmeceuticals market and thus fueling the demand for natural active ingredients in cosmetics.
In addition, the high brand awareness of cosmeceuticals and loyalty for cosmetics such as anti-aging, sunscreen, and hair care products are expected to promote market growth in the near future. Furthermore, the demand for multifunctional products is driving innovation, as price-conscious consumers opt for products that hydrate and protect the skin; this is expected to increase the sale revenue in the APAC region.
Companies constantly advertise cosmetics that offer medicinal benefits, especially on social media sites like Facebook, Twitter, YouTube, and Instagram, where beauty bloggers are trendy. The demand for anti-aging products to prevent hair damage, age spots, uneven skin tone, dry skin, and wrinkles is likely to be the main driver of APAC cosmeceuticals market growth.
Lax regulations are a major constraint on the industry's growth, as they allow the growth of counterfeit products in the market, causing damage to the skin and hair. Unlike drugs, the regulatory system for cosmeceuticals is ambiguous and not strict. Therefore, new products introduced most of the time are subject to the uncertainty of regulatory scrutiny. These regulatory ambiguities lead to the sale of counterfeit cosmetic products, damaging the reputation of the cosmetics market due to its negative impact.
Impact of COVID-19 on the APAC cosmeceuticals market:
The COVID-19 pandemic has influenced the consumption habits and purchasing decisions of Asian consumers, causing market growth to decline slightly, as several governments impose multiple measures to curb the spread of COVID-19. Consumers in the market are concerned about their skin. Thus, the category grew with the start of the pandemic in the market, and the sales of cosmetics increased during the period. In addition, "home skincare" web searches have increased by more than 50% since 2020; this data indicates the positive effect for the APAC cosmeceuticals market.
The research report on the APAC cosmeceuticals market has been segmented and sub-segmented into the following categories.
By Product Type:
By Distribution Channel:
Emerging countries such as China and India see increased sales in the cosmeceuticals market, which offers great potential for suppliers to enter the cosmeceuticals market in these countries. In addition, the market is experiencing revenue growth from Indonesia, Thailand, Vietnam, Malaysia, Singapore, and Australia.
The Chinese cosmeceuticals market is estimated to have a CAGR of 7.9% during the forecast period. The cosmeceuticals have recently gained traction in China, and it has become one of the most preferred product categories. The busier and more stressful lifestyles of consumers in the country and worsening environmental conditions have sparked increased concern about skin conditions among consumers seeking skin rejuvenation products. This has led to increased sales of cosmeceuticals. Consumption of cosmeceuticals in China is most prevalent in the Tier 1 mega-cities, with increasing penetration in Tier 2 and Tier 3 cities, which are experiencing an increase in China's middle class and consumption of cosmeceuticals in the country. Although a portion of Chinese consumers is willing to pay for branded or higher quality products, consumers tend to be less brand loyal and more price-sensitive than consumers in the United States or European counterparts.
In India, the skincare market is experiencing exaggerated growth in gender equity products in both urban and rural areas. As a result, the medicinal cosmetics industry is expected to grow at a CAGR of 11.9% in the country. The predicted double-digit growth in the emerging skincare cosmeceuticals market encourages suppliers to develop high-end, high-quality products. In the region, countries like China, India, and Vietnam present considerable growth opportunities for market players, mainly due to the growth of the millennial population in the upcoming years.
KEY MARKET PLAYERS:
Some promising companies operating in the APAC cosmeceuticals market profiled in this report are L'Oreal SA, Procter & Gamble, Unilever PLC, Shiseido Co. Ltd, Revlon Inc., Groupe Clarins SA, Beiersdorf AG, and Johnson & Johnson Inc.