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REPOR T

Skincare still dominates premium international and large FMCG brands
Least affected by the pandemic, the Asia Pacific region dominate omnichannel sales in Indonesia.
is projected to be the primary growth area for the global In Vietnam, there’s a resurgence in premium beauty
beauty and personal care industry, contributing to and personal care products, prompting mass product
73% of global value growth between 2020 and 2025. manufacturers to focus on premiumisation. This may involve
Dominating the beauty sector in Asia Pacific, Skincare is upgrading packaging to emphasise premium features and
expected to surpass overall industry growth in most countries enhancing product quality by adding extra ingredients or
except South Korea and Taiwan. Both mass and premium benefits. Vietnamese consumers are increasingly willing to
skincare categories are set to grow, with premium anti-ageing invest in higher-quality beauty and personal care products,
and basic moisturisers offering the largest opportunities. driving the anticipated premiumisation of the mass segment.
South Korea and Vietnam are leading the projected Let’s take a closer look at a few of the most prominent emerging
growth in the skincare segment after China and Japan, markets in Asia, that all brands should delve into when
signalling a strong and expanding skincare market. considering their brand strategy for growth and expansion.

TRENdS IN SKIN cARE: fAcIAL cARE, Indonesia – The Exotic Splendor
PREMIuM BRANdS, LocAL BRANdS The Indonesian market is rapidly evolving and brimming with
Facial Care potential, thanks to the government’s focus on the industry
The demand for facial care has increased in a number as an economic growth driver. As the world’s fourth most
of countries. An increased interest in purchasing facial populous country with a substantial millennial population,
care products is said to be attributable to the Zoom face Indonesia presents vast opportunities for brands.
phenomenon. The popularity of using Zoom and other In 2023, the Personal
similar technologies for work and personal meetings meant Care segment in
a considerable amount of time was spent in front of the Indonesia stood
camera. The prevalence of making face-to-face calls has out with a market
made consumers want to appear more attractive in front of volume of US$3.41
the camera. When witnessing their “Zoom face”, consumers billion. Skincare,
become aware of various aspects of their facial appearance particularly products
they may not have noticed prior to Covid-19: fine wrinkles on with moisturising and
the forehead, eyes, or even in the lip area when smiling, acne, anti-aging properties,
dull or dry skin. or other skin conditions. To ameliorate one’s dominates with a value
flaws, a greater investment in facial care is made. of US$2.31 billion and
Facial care in China accounted for the bulk of new retail value an expected annual
added in 2016-2021. Facial care was also the best performing growth rate of 13.5%.
category in Indonesia in 2021, with retail value sales rising by Skincare is competitive
13% in current terms to IDR26.0 trillion. Facial care was also and it’s among the
the best performing category in Thailand in 2021, with retail fastest-growing
value sales growing by 8% in current terms to THB75.6 billion. segments, allowing new brands to enter successfully.
Products emphasising natural, halal, organic,
Premium Brands and herbal ingredients, as well as active ingredients
Premium skincare thrives in China, outperforming
mass skincare products. While it’s uncertain if China’s
preference for premium goods will set a regional trend,
monitoring the evolution of premium brands there
provides insights into various growth-related factors,
including consumer spending and production capacity.
In Indonesia, premium haircare emerged as the top-
performing category in 2021, with a 24% increase in retail
value sales, reaching IDR456 billion. The demand for imported
skincare products is rising, with omni-channel retailers like
Sephora and The Body Shop making a significant impact.
Local brand products are popular, but their production
capacity limits availability. Established brands like L’Oréal have
easier access to imports, reducing supply issues, especially in
categories like skincare and colour cosmetics. Consequently,

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