{"id":17585,"date":"2024-07-10T16:20:04","date_gmt":"2024-07-10T08:20:04","guid":{"rendered":"https:\/\/www.bdapartners.com\/?p=17585"},"modified":"2024-07-10T16:20:07","modified_gmt":"2024-07-10T08:20:07","slug":"the-beauty-sector-is-growing-and-glowing-in-asia","status":"publish","type":"post","link":"https:\/\/www.bdapartners.com\/ja\/insights\/the-beauty-sector-is-growing-and-glowing-in-asia\/","title":{"rendered":"The beauty sector is growing and glowing in Asia"},"content":{"rendered":"\n

North Asian countries already comprise the world\u2019s largest markets for beauty and personal care products. China, Korea and Japan<\/strong> together represent 35% of the global market, with above average growth. China skyrocketed to become the industry leader in this region, but has witnessed a troubling market hangover in the last 12 months.<\/p>\n\n\n\n

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Asia Pacific\u2019s luxury beauty segment<\/strong> \u2013 especially China \u2013 face the challenge of justifying high prices to increasingly sophisticated and discerning consumers, against a backdrop of economic uncertainty and rising quality and quantity of brands at more accessible price points. At the same time, younger women – and men – are spending more each year.<\/p>\n\n\n\n

North America makes up 25% of the global market, while Europe makes up 20%. And those regions are increasingly looking to Asia for innovation and growth<\/strong>.<\/p>\n\n\n\n

Asian beauty brands have recovered from the pandemic, and are jostling to find new, compelling ways to connect with consumers. Beauty influencers <\/strong>and DTC brands<\/strong> are both driving and adapting to buyer preferences.<\/p>\n\n\n\n

In the past, people would buy beauty brands landed in China purely because they were \u2018Made in France\u2019 or \u2018Made in Switzerland\u2019. Suddenly now, Asian consumers are rediscovering and appreciating their own rich cultural backgrounds and ancient beauty practices<\/strong>.<\/p>\n\n\n\n

This swelling national pride has encouraged new Chinese domestic labels<\/strong> to engage in premium-isation, to offer more interesting propositions, drawing on home advantage. Compared to international peers, they have innovated faster and shown themselves to be adaptable and responsive to local consumer trends. International brands are finding it increasingly hard to grow market share, unless they speak to local preferences.<\/p>\n\n\n\n

L’Or\u00e9al<\/strong> remains the leading global beauty products company, with US$40bn in global sales, double the size of second-place Unilever<\/strong>. Rounding out the top five are Est\u00e9e Lauder, P&G<\/strong> and the Japanese giant: Shiseido<\/strong>. All of these are fighting to find growth across Asia, although Est\u00e9e\u2019s big bets on China <\/strong>have mostly misfired.<\/strong><\/p>\n\n\n\n

Once the domain of Western beauty leaders, the cosmetics industry across Asia is now booming, at least outside China, blending Eastern and Western elements. Rising disposable income and evolving lifestyles drive this growth, marking the beauty industry as one of the most radiant and lucrative consumer segments.<\/p>\n\n\n\n

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BDA\u2019s latest Insight report <\/a>shows that:<\/p>\n\n\n\n