PDF Cosmetics & Toiletries Market Overviews 2015

Cosmetics & Toiletries Market Overviews 2015

Compiled by U.S. Commercial Service Hong Kong

For additional information or market research please visit the Market Research Library at to find Country Commercial Guides (CCG) and industry reports.

Cosmetics, Toiletries and Skincare Market Overviews 2015 2

Table of Contents

Prospective Markets

Comparison by Import Market Size & Market Entry

3

Market Overview and Shares of U.S. Cosmetics & Toiletries

Exports

4

Individual Country Reports

Australia

6

China

8

Hong Kong

19

India

30

Indonesia

38

Japan

44

Malaysia

51

New Zealand

61

Philippines

63

Russia

67

Singapore

72

South Korea

74

Taiwan

82

Thailand

88

Turkey

90

United Arab Emirates

95

Vietnam

100

U.S. Contact List for Cosmetics/Toiletries Industry Specialist 104

Cosmetics, Toiletries and Skincare Market Overviews 2015 3

Comparison by Import Market Size and Market Entry

Country

Population (million)

Current GDP per Capita (US$)

C&T Market Size (by import values) (US$ million)

Import Duty Rate on C&T (%)

Regulations L=Labeling R=Registration CFS= Cert of free sale GMP= Cert of Good Mfg Practices V/S=VAT /Sales Tax, O=Other

Japan Russia China South Korea India Australia Turkey Thailand Hong Kong

Indonesia Taiwan Malaysia Philippines Singapore New Zealand United Arab Emirates Vietnam

127.1 142.47 1,355.7 49.03 1,236.3 22.5 81.6 67.7 7.1 253.6 23.3 30.07 107.6 5.5 4.4

5.6 93.4

37,800 24,800 12,900 35,400 5,800 46,600 19,600 14,400 55,200 10,200 43,600 24,500 7,000 81,300 35,000

65,000 5,600

13,874 13,500 11,881 6,300 3,330 2,800 2,250** 2,025 2,000 1,500 1,230 604* 438 400 375

0-5.4 13.5-15 6.5-10 0-8 28.8 0 20 30 0 0-10 7.5-10 0-25 1-10 0 0-5

L, O L, R, CFS, V, O L, R, V R, CGM, CFS, O L L, R, V/S R, V/S R, CFS/ CGM None L, R, V, S, CFS R, CFS, V L, R, CFS, CGM L, R, V L, R,V/S L

Not available Not available

5 20-30

L, R, O R, CFS, V, O

** 2009 *2008 C&T: Cosmetics & Toiletries

Cosmetics, Toiletries and Skincare Market Overviews 2015 4

Market Overview

This report covers 17 markets: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam, with a combined population of about 250 million.

These 17 markets have a combined cosmetics and toiletries market worth of US$60 billion. In several of the largest markets like Russia, India and China, U.S. cosmetics and toiletries constitute less than 3% of the total market size. Therefore, there are tremendous export opportunities for U.S. companies. Japan is the regions' largest cosmetics and toiletries market followed by Russia, China, and South Korea. Market penetration of international brands in India and Indonesia is still very low. Hong Kong whose market size is about 17% of China's, imports about the same amount of cosmetics and toiletries from the U.S. And Hong Kong has one of the most open market for selling cosmetics and toiletries, as it has no registration or labeling requirements, no import duties or value-added taxes. Not all of the markets are free markets like Hong Kong. China, South Korea, Russia, Thailand and many others have stringent registration requirements but are not inaccessible; it only requires the appointment of an experienced local importer/distributor that is familiar with the regulations.

Market entry strategies vary from market to market, but most countries require the appointment of a local distributor/agent to handle the registrations and execute the best marketing and selling strategy to suit local conditions. In Thailand and Taiwan, direct selling is prevalent and effective and in Japan it is growing in popularity. In China, E-commerce of cosmetics and skin care products is prevalent.

U.S. cosmetics and toiletry suppliers are known for being innovative and for producing quality and technologically-advanced products at competitive prices in most of the Asia Pacific markets. In this region, U.S. cosmetics and toiletry products faces stiff competition from Japanese and French products. The innovative packaging and the Asian consumers' perception that Japanese products are more suitable for Asian skins have sometimes given Japanese products the edge over American and European products. It is therefore crucial that U.S. exporters modify product names and packaging to suit local demand. While a product made for "whitening" skin is politically incorrect to use in the U.S., skincare products for lightening pigmentation spots on the face are best simply named "whitening products" rather than lightening products or brightening products. A smaller product size is required in Hong Kong to suit the younger consumers' tastes, and for ease of carrying in bags but in China, the Philippines, India or Vietnam, a smaller size is required for affordability as the unit costs is lower than for a standard American-size item.

Each market also has its own sectors that had better selling prospects than others. While most markets cite anti-aging, hair products, make-up, whitening skincare products and sunscreen and sun-care products as the sectors with the best sales prospects, in the Philippines, whitening deodorant and underarm products are among the products with the best sales prospects. Mass-market products sell better in India and Vietnam than premium products and men's cosmetics and skincare products are growing in popularity not only in the mature markets of Japan, Hong Kong and South Korea but also in India. Medical spa and doctor's prescription-strength skincare products and products containing naturally-derived and organically-grown ingredients are in high demand in the 17 markets.

Cosmetics, Toiletries and Skincare Market Overviews 2015 5

Shares of U.S. Total Exports of Cosmetics & Toiletries

Country

2013

2014

In US dollars (millions)

Percent Change

Australia

526

541

+3%

Japan

475

449

-6%

Korea

339

390

+15%

Hong Kong

411

361

-14%

China

350

356

+2%

United Arab Emirates

240

273

+12%

Singapore

243

267

+9%

Taiwan

159

160

+1%

Thailand

117

119

+2%

Russia

110

101

-9%

Philippines

66

68

+3%

Malaysia

53

61

+13%

India

47

55

+15%

New Zealand

41

43

+5%

Indonesia

46

41

-12%

Turkey

34

37

+8%

Vietnam

21

33

+36%

Total

3,278

3,355

+2%

Sources: Data on this site have been compiled from tariff and trade data from the U.S. Department of Commerce and the U.S. International Trade Commission.

For additional information or market research please visit the Market Research Library at to find Country Commercial Guides (CCG) and industry reports.

** 2009 *2008 C&T: Cosmetics & Toiletries

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