Japan Beauty Market Size was valued at USD 45.2 Billion in 2022. The beauty market industry is projected to grow from USD 46.6 Billion in 2023 to USD 58.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.00% during the forecast period (2024 - 2032). Several major market drivers are driving the Japanese beauty market. Japan has a rich history of skincare and beauty practices, emphasizing self-care and traditional beauty rituals. The demand for beauty products is consistently driven by this cultural factor.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing demand for natural skincare and cosmetics goods is boosting the market growth
In Japan, the market CAGR for beauty has grown dramatically in the last several years. Numerous product advancements have resulted from consumers' rising interest in natural components in cosmetics and skin care products. These natural substances' advantages have been acknowledged, and they are being used to meet evolving consumer needs. Businesses such as Unilever, Shiseido, and several others are able to produce new items for consumers by promptly doing research and development. Baum is a sustainable skincare brand that Shiseido launched in Japan in June 2021. According to the company, trees provided 90% of the formula for this brand's products. Furthermore, the expansion of the cosmetic market in the region can be attributed to the emergence of e-commerce. Numerous brands of organic cosmetics can be found on e-commerce sites such as Amazon, Rakuten, Yahoo, Lahaco, and numerous others. Customers now have more choices when it comes to cosmetics.
Japanese businesses are quite aggressive in their efforts to market and advertise their goods. Market participants are pushing their products intensely and aggressively in an effort to draw in customers and maintain their competitiveness. In Japan, a significant portion of the youth use social media platforms such as Instagram, Facebook, Twitter, Line, Youtube, and many more. By using these platforms to advertise cosmetics and other beauty items, the companies attract clients' attention. There is also usage of more conventional advertising media, such as newspapers and television. As per the 2021 report on advertising spending in Japan by Dentsu Inc., the advertising expenses related to cosmetics saw a 5.3% growth, making up 9.7% of the total advertising expenditure. As to the survey, there has been a surge in the advertising of makeup removers, toothbrushes, and women's cosmetics during the past five years. Thus, driving the beauty market revenue.
The Japan Beauty market segmentation, based on product type includes personal care {hair care (shampoo, conditioners, other products), skin care (facial care products, body care products, lip care products), bath and shower (shower gels, soaps, other products), oral care (toothbrushes, toothpaste, mouthwashes and rinses, other products), men's grooming products, deodrants and antiperspirants)}, and cosmetics/make-up products {colour cosmetics (facial make-up products, eye make-up products, lip and nail make-up products, hair styling and coloring products}. The personal care segment dominated the market mostly. In the Japanese beauty market, the personal care segment is a sizable and varied category that includes a broad range of goods aimed at improving personal hygiene, grooming, and general well-being. There is a vast range of goods available on the market that address different skin types and problems. These include sensitive skin products and anti-aging remedies. In addition to personal care goods, salons, spas, and skincare clinics provide essential beauty services that are included in the personal care market. Professional skincare procedures, hair styling, and relaxation are offered by these services.
The Japan Beauty market segmentation, based on category, includes premium products and mass products. The premium products category generated the most income. In Japan, high-end cosmetics are renowned for utilizing premium, frequently uncommon substances. This comprises cutting-edge scientific formulations, conventional Japanese components like rice bran and green tea, and organic plant extracts. Premium cosmetic products also need to consider their container design. To evoke a feeling of exclusivity and luxury, exquisite packaging is employed, frequently with traditional Japanese design features.
Figure 1: Japan Beauty Market, by Category, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Japan Beauty market segmentation, based on distribution channel, includes specialist retail stores, supermarkets/hypermarkets, convenience stores, pharmacies/drug stores, online retail channels, and other distribution channels. The specialist retail stores category generated the most income. These shops sell only cosmetics and have a carefully chosen assortment of luxury and niche makeup brands. A vast selection of color cosmetics, skincare products, and beauty accessories are available to customers. Additionally, a targeted assortment of skincare products is offered by specialty skincare boutiques. Their personnel is usually well-informed and can help consumers identify goods that are specific to their skin type and issues.
Japan is one of the world's biggest markets for beauty products. When it comes to the chemical composition of hair products, Japanese customers are incredibly knowledgeable and smart. The market is seeing a strong demand for natural components and organic formulations, which is pushing major manufacturers to introduce products with clean/natural labeling. High-performance products, skincare products with immediate effects, and crossover products with features that appeal to a variety of consumers are popular among Japanese consumers. The beauty industry in Japan is expanding due to the greatest per capita spending of Japanese consumers on cosmetics, including skin care items. Moreover, the increasing prevalence of online distribution channels and e-commerce platforms like as Amazon, Rakuten, Yahoo, and several local websites offers a wide range of cosmetics and personal care products that attract customers. Innovations in skincare are constantly being developed in Japan. Market participants are developing cutting-edge technology for customized beauty products.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the beauty market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, beauty industry must offer cost-effective items.
Unilever PLC
Procter & Gamble Co
Mandom Corporation
Lion Corporation
Shiseido Company
L'Oreal SA
AS Watson Group
SK-II
Makanai
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