June 19, 2023
(press release)
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The Asia-Pacific (APAC) health & beauty market is expanding rapidly, propelled by improving macroeconomic conditions, new product launches, a rise in online shopping, and increased manufacturer investment. Moreover, the introduction of new personalized, natural/organic, and multi-functional products will spur market premiumization in the coming years. As a result, the APAC health & beauty market is projected to record a value compound annual growth rate (CAGR) of 4.7% over 2022–27, according to GlobalData, a leading data and analytics company. GlobalData’s report, “Opportunities in the Asia-Pacific Health & Beauty Industry” reveals that skincare was the dominant sector in 2022. However, male toiletries will register the fastest value CAGR at 7.7% over 2022–27, followed by fragrances. Shraddha Shelke, Consumer Analyst at GlobalData, comments: “The Asia-Pacific economy is recovering from the brunt of COVID-19 and the cost-of-living crisis, powered by rising demand in China, India, and other emerging economies in the region. Rising household disposable incomes, surging public outdoor activities, and the increasing foreign tourist influx are fuelling demand for premium health & beauty products.” According to GlobalData’s report, APAC was the largest regional market for health & beauty in 2022. However, the region’s per capita expenditure (PCE) on health & beauty products stood at $45.2 in 2022, lagging the global average of $69.5, and the Western regions, indicating ample room for future growth. Shelke adds: “E-commerce sales are on the rise in the APAC region, with startups and major corporations launching direct-to-consumer health & beauty brands. For instance, in late 2021, Hindustan Unilever launched five digital-first premium beauty brands: Love Beauty & Planet, Simple, Baby Dove, Acne Squad, and Find Your Happy Place. Online retailers, such as Nykaa and NewU, benefit from the wide choice of products and applications offered in their digital stores, such as virtual mirrors and artificial intelligence (AI) scanners. As a result, e-retail was the leading distribution channel in 2022 in the APAC health & beauty industry, surpassing hypermarkets & supermarkets, and convenience stores.” Consumers’ preference for digital shopping surged during the COVID-19 pandemic and is expected to hold its sway over consumers due to its convenience. Moreover, the incorporation of virtual reality into digital platforms is providing consumers with a shopping experience that is almost similar to physical shopping. The popularity of online shopping is also corroborated by GlobalData’s Q1 2023 consumer survey, wherein 41% of respondents said they will continue spending time online in the next three months of 2023*. Manufacturers are expected to step up their social media and online presence and adopt novel technologies to attract these digitally savvy consumers. The rising penetration of e-commerce and social commerce will thereby be a key catalyst for the APAC health & beauty industry’s value sales growth through 2027. Shelke concludes: “Procter & Gamble was the leading manufacturer in 2022 in the Asia-Pacific health & beauty industry, followed by Unilever and L’Oréal. However, these multinational companies (MNCs) face stiff competition from domestic startups and brands that adapt more agilely to fluid consumer preferences. Domestic health & beauty makers and retailers are also capitalizing on the strong nationalism/localism trend among young Millennials and the Gen Z consumer cohort.” * GlobalData Q1 2023 Consumer Survey – Asia & Australia, with 6,226 respondents, published in May 2023
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