Page 35 - EM - Export Magazine Perfumery Edition

R R E E P P O O R R T T

Sun Care showing impressive 16.9% growth over the year.
The target audience for this segment includes middle-income
consumers and young adults who seek exclusive products and
are open to trying new ones. Versatile solutions combining SPF,
hydration, and anti-aging care are popular, as are products
promoting radiant, fair, and blemish-free skin. Post-pandemic,
sales of Beauty and Personal Care products have risen, with
mass products in skincare, hair care, and bath and shower
categories contributing to approximately 75% of retail value
sales. Mass men’s skincare experienced substantial growth
of 28% in 2022, making it a segment that brands should pay
attention to. While price hikes, taxes, and inflation have affected
the market and consumer spending habits, the emerging middle The leading segment in Malaysia is Personal Care, with a
class and a reduced gender pay gap have increased disposable market volume of US$1.32 billion in 2023. Consumers seek
income and created a demand for imported, high-quality products that expand their skincare routines to their entire
products, especially among women. Brands should be attentive body and favour items fortified with vitamins, often in serum
to these market dynamics and changing consumer preferences. format. Anti-ageing products and those containing active
ingredients like Niacinamide and Glycolic Acid continue to
attract consumers alongside the growing popularity of skin
nutrition products.
Sustainability is a significant trend among Malaysian consumers,
who prefer clean, sustainable, natural, and halal ingredients.
Plant-based and fruit-based products, like botanical ranges
from brands such as Pantene and Moist Diane, have received
positive responses.
The beauty sector remains competitive, with K-Beauty and
J-Beauty trends influencing consumer demands. Retailers like
International brands, including Unilever Indonesia, P&G, and Watsons and Guardian have introduced more products from
L’Oréal, continue to dominate, offering a wide range of products Korea and Japan, meeting the desire to replicate celebrity looks.
to cater to local consumer needs. Korean brands are also Despite the presence of Korean brands, French beauty products
strong competitors, particularly in the skincare sector, where are considered glamorous and high-quality by Malaysian
they’re gaining market share. E-commerce is rapidly growing in consumers, particularly in the luxury segment, with brands like
Indonesia and is expected to contribute 18.9% of total market YSL, Dior, and Clarins leading the market.
revenue by 2023. Online platforms like Tokopedia, Shopee, and Other successful brands in the market include Wardah, an
Lazada offer free shipping and cashback promotions, appealing Indonesian brand that recently launched its mass colour
to Indonesian consumers who seek special offers and deals. cosmetics and mass skincare ranges in mainstream outlets.
However, prices on these platforms may be higher compared Safi is also expected to continue growing its market share with
to physical stores. Despite fierce competition, brands looking its halal product range designed to appeal to hijab wearers.
to move into the Indonesian market will find themselves
surrounded by many opportunities. However, the fragmentation
in some areas and tight regulations from Indonesian institutions
mean brands will benefit from partnering with someone who is
familiar with these matters in order to succeed.

Malaysia
The competitive Beauty and Personal Care Market in Malaysia
presents opportunities for brands, but it’s crucial to note that
only local companies with import licenses can place cosmetic
products in the market. In 2023, the market was valued at
US$2.88 billion, with an expected annual growth rate of 3.10%
(CAGR 2023-2027).

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