Natural, Organic quality in demand
According to Yano Research Institute, the Japanese cosmetic market in FY2015 was 2’401.0 billion yen, up 3 % over the previous fiscal year, based on the shipment value at brand manufacturers. The average of annual expenditures for cosmetics per two or more person households was 34’726 yen in 2015.
Sales of cosmetics in Japan are projected to remain stable despite the decreasing population due to the high unit price of added-value products, in addition to the growing demand for anti-aging skin care products to serve an increasingly large elderly population. Furthermore, demand for skin care products as well as makeup for male consumers has increased in recent years, and while the women’s cosmetic market is highly saturated, it is estimated that only 20% of the male consumer base is being served.
The growth in the number of foreign tourists has also been a remarkable driving force in the market for luxury goods, especially Japanese cosmetics, boosted by “explosive purchasing” by Chinese visitors who come to Japan with the express purpose of shopping.
Sales of skin care products in 2016 were more than twice that of makeup products, which is evidence of the overwhelming focus of Japanese women on using added-value products as a tool not to simply cover up skin deficiencies but rather to improve the skin.
The skincare cosmetics take almost half of the whole cosmetics market, while make-up cosmetics account for 20.6 % and perfumes only for 0.2%. Lotions, cleansing creams and sunscreens are the categories whose shipment values are increasing.
The import of cosmetics has decreased in recent years, with France, the United States, and Thailand (haircare) still on top, but with decreasing tendencies. The import from China and South Korea are, on the other hand, growing.
The fact that the imports from Germany remains rather stable can be seen as a positive sign for Swiss natural skincare products as the German organic cosmetics are becoming popular in Japan (ref. Annemarie Börlind, Dr. Hauschka, Tautropfen, Lavera ). The Japanese consumers who value natural ingredients for cosmetics will find such Swiss products also attractive.
An overview of the Cosmetics market in Japan :
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