While fashion retail was strongly impacted by supply chain issues, rising inflation and a decline in consumer confidence in 2022, the beauty market continued to prove its stability, even in the face of the pandemic’s aftermath.
And it seems that it will maintain its strength in the coming years, with new reports from GlobalData suggesting the market is particularly set to surge in certain parts of Asia.
This reigns especially true for the Chinese make-up market, which, according to the analytics company, will expand to 74.6 billion yuan (11.7 billion dollars) by 2026, with a compound annual growth rate (CAGR) of 7.4 percent over 2021 to 26.
The firm noted that the eye make-up category specifically is set to register the fastest value CAGR over the period, followed by lip make-up.
In a release, Bobby Verghese, consumer analyst, commented that this factor is largely caused by the influx of mask use in the region, with consumers seeking eye products for the area exposed above the mask.
E-tailers were the leading distribution channel for the market in 2021, while L’Oréal, Carslan and The Estée Lauder Companies (ELC) were the top three companies in value terms.
ELC and L’Oréal take top spots
South Korea’s make-up market is also set to expand, with an estimated rise of 2,827.8 billion won (2.5 billion dollars) by 2026, a CAGR of 5.5 percent.
The firm attributed its boost to the increase in outdoor mobility, high product innovation, strong celebrity endorsements and the rise in men embracing beauty into their routines.
The face make-up category is set to grow the fastest for the country, with Amorepacific Corporation, LG Corp and ELC coming out on top for companies.
Meanwhile, Japan is additionally expected to see a rise, albeit in a much smaller format, with an expected marginal CAGR of 0.1 percent, reaching 531.8 billion yen (5.5 billion dollars) by 2026.
This is largely due to the easing of pandemic measures and a growing interest in natural cosmetics, however new covid-19 variants in the region could impact consumer spending.
While the eye make-up category also came out on top for Japan, Kao Corporation, Shiseido Company and L’Oréal made up its top three companies for 2021.
In order to tackle these markets, analysts at GlobalData suggested a number of trends that encapsulated consumers, including the rise of clean beauty, which was prominent in all three countries and utilises natural and organic ingredients.
Innovation in both marketing and formulations were also deemed important, with many consumers showing an interest in the adoption of virtual make-up apps and advanced e-commerce platforms that have come to light in recent years.