Forget K-Beauty, Japanese beauty (also known as J-Beauty) is predicted to become the next mega trend in global cosmetics as consumers turn towards simpler, shorter and cleaner regimens.
According to data and analytics company GlobalData, Japan had a higher per capita consumption of cosmetics and toiletries than its regional counterparts in 2018, and even beat the global rate by 3.8 units.
The Japanese cosmetics and toiletries market is among the largest in the world, with an overall market size of $35.2 billion in 2018. And it’s projected to grow at a compound annual growth rate (CAGR) of 3.5% over the five-year period between 2018 and 2023.
With a host of established indigenous brands such as Shiseido, Pola Orbis, Kosé (Decorte), Shu Uemura, SK-II, DHC, Sekkisei, and Shiro, GlobalData said J-Beauty is now spreading beyond its domestic market.
This is being achieved through partnerships with top international retail chains both in the online and offline realms. A case in point is a co-production and distribution deal signed by Shiseido with A.S. Watson last year. The agreement will help the Japanese brand meet growing demand for J-Beauty products across the Philippines, Indonesia, and China, establishing a benchmark for other Japanese brands to follow.
Unlike K-Beauty, which proclaims the benefits of 10-step skincare routines, Japanese beauty follows a ‘less is more’ philosophy. According to GlobalData, consumers use a relatively small number of products, made from fewer, more effective active ingredients. There is also a multi-functionality element, which could appeal to busy consumers.
The time factor is expected to take on a new relevance among beauty consumers as more and more people shift from long routines to shorter regimens during busy weekday mornings.
According to a 2018 GlobalData survey, 63% of consumers worldwide are more likely to make a purchase if products align well with their time and money constraints.
Rashmi Mahajan, Consumer Analyst at GlobalData, said: “Digitally connected and fashion-forward young consumers are embracing distinctive new products/specific regimens from different countries. Consumers across the globe have seen how K-beauty trends have become a success in the international market.
“The ‘made in Japan’ or so called ‘J-beauty’ products are benefiting from their perceived quality and are a big draw for discerning consumers, and brands can step up investments to increase their presence in the Asian and Western markets.”