MANILA, Philippines — The Asia Pacific region is seen offering a bright spot in the global recovery of the beauty and personal care (BPC) market, with the Philippines expected to be among the top 10 countries contributing to the growth.
In its latest study, global market research company Euromonitor International said the BPC market would make a comeback this year, following a three percent decline in 2020 as the pandemic took its toll on all sectors.
The growth will largely be driven by Asia Pacific over the next five years, with an annual growth rate of at least five percent until 2025.
Last year, the pandemic resulted in the contraction of the BPC industry to $487 billion.
As the global economy recovers, Euromonitor said consumption of BPC would also occur and the region would remain the industry’s growth engine.
In Asia Pacific, the Philippines is seen as the eighth biggest contributor to growth. In 2020, the BPC market in the country was worth roughly $5 billion.
Over the next five years, Euromonitor said the biggest increment in the Philippines would come from cosmetics at 12 percent, followed by fragrances at 12 percent. Skin care would also see an increase of six percent, while hair care would go up by at least three percent.
In the region, China will remain the biggest growth driver followed by Japan and India. Completing the top 10 countries are South Korea, Indonesia, Thailand, Taiwan, Hong Kong and Malaysia.
“By 2025, skin care will steal the brightest spot of the global beauty industry as the category is estimated to reach $181 billion sales, mostly led by Asia Pacific, as consumers are increasingly self-educating on active ingredients and will continue their quest for ‘skinimalism’ happening in the form of simplified brand messaging, formulations and routines,” Euromonitor said.
“Beauty brands that are purpose-driven, digitally-savvy, clinically-backed, price accessible and approachable are most likely to thrive, and continue to do so,” it said.
Further, the global research firm emphasized that e-commerce growth has solidified digital’s key role in beauty technology evolution.
“The e-commerce acceleration predicted to take course over the next five to 10 years occurred in one single year as the pandemic boosted consumers’ adoption of online platforms for their everyday needs,” Euromonitor said.
Top key innovation tactics in a post-COVID-19 era include green, clean, and natural features, digital engagement, focus on hygiene, prevention and protection, ethical products and brands, and health-inspired beauty.
Others include new formulations, wellness beauty, new ingredients, alternative distribution models, and new packaging sizes.
“Brands that play on trust and transparency, as well as those with science-backed credentials and ‘clinical’ efficacy, will continue to resonate well,” it said.