Page 34 - EM - Export Magazine Perfumery Edition

R E P O R T

to expand, impacting both business and consumer cultures. like skincare and colour cosmetics. Consequently, premium
Skincare still dominates Least affected by the pandemic, the international and large FMCG brands dominate omnichannel
Asia Pacific region is projected to be the primary growth area sales in Indonesia. In Vietnam, there’s a resurgence in premium
for the global beauty and personal care industry, contributing beauty and personal care products, prompting mass product
to 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. South driving the anticipated premiumisation of the mass segment.
Korea and Vietnam are leading the projected growth in the Let’s take a closer look at a few of the most prominent emerging
skincare segment after China and Japan, signalling a strong and markets in Asia, that all brands should delve into when
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
Facial Care rapidly evolving and brimming
The demand for facial care has increased in a number of countries. with potential, thanks to the
An increased interest in purchasing facial care products is said to government’s focus on the
be attributable to the Zoom face phenomenon. The popularity of industry as an economic
using Zoom and other similar technologies for work and personal growth driver. As the world’s
meetings meant a considerable amount of time was spent in fourth most populous country
front of the camera. The prevalence of making face-to-face calls with a substantial millennial
has made consumers want to appear more attractive in front population, Indonesia presents
of the camera. When witnessing their “Zoom face”, consumers vast opportunities for brands.
become aware of various aspects of their facial appearance they In 2023, the Personal Care
may not have noticed prior to Covid-19: fine wrinkles on the segment in Indonesia stood out
forehead, eyes, or even in the lip area when smiling, acne, dull with a market volume of US$3.41
or dry skin. or other skin conditions. To ameliorate one’s flaws, a billion. Skincare, particularly
greater investment in facial care is made. products with moisturising and anti-aging properties, dominates
Facial care in China accounted for the bulk of new retail value with a value of US$2.31 billion and an expected annual growth
added in 2016-2021. Facial care was also the best performing rate of 13.5%. Skincare is competitive and it’s among the fastest-
category in Indonesia in 2021, with retail value sales rising by growing segments, allowing new brands to enter successfully.
13% in current terms to IDR26.0 trillion. Facial care was also the Products emphasising natural, halal, organic, and herbal
best performing category in Thailand in 2021, with retail value ingredients, as well as active ingredients like AHA, BHA, and
sales growing by 8% in current terms to THB75.6 billion. hyaluronic acid, perform well. Hybrid products that combine
sun care benefits with skincare are also gaining popularity, with
Premium Brands
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

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