Industry Trends: Japan Skincare Market Research 2023

The skincare market in Japan is a significant player in the global industry, boasting a value of approximately USD $35 billion in 2019. With skincare products comprising 53% of the Japanese cosmetics market, there is a strong demand for anti-aging, brightening, and moisturizing products. The market has shown steady growth, with a projected revenue of $6.7 million in 2020. The emphasis on anti-aging has been a driving force, leading to increased interest in natural and organic skincare products¹. In 2021, the Japanese skincare market reached a valuation of $17.1 billion, with a projected compound annual growth rate (CAGR) of over 1% during the forecast period².

Diverse skincare needs across age groups

Our latest consumer research has revealed that in addition to basic skincare needs such as moisture and hydration, each age group has specific skincare demands. Understanding these insights is crucial for developing tailored product lineups and effective communication strategies that align with the target market.

Skincare product usage frequency and category trends

The majority of individuals in Japan incorporate skincare products into their daily routines, with facial cleansers, face masks/eye masks, essential oils/beauty oils, and serums being the most commonly used categories. Interestingly, the usage frequency of face masks/eye masks is slightly lower. Among users, 71.2% use face masks/eye masks 1-3 times a week.

Skincare product purchase channels and information sources

Physical stores remain the preferred channel for purchasing skincare products, with drugstores being the most popular choice (84.7%). Shopping centers/e-commerce platforms (43.7%) and brand official online websites (42.0%) are also widely utilized. Regarding information sources, non-online platforms hold significant influence, with word-of-mouth recommendations from friends and family (24.9%) and manufacturer/brand official websites (22.4%) playing pivotal roles.

Conclusion

The Japanese skincare market continues to exhibit growth, driven by diverse consumer needs and preferences. To succeed in this dynamic market, companies must align their product development and marketing strategies with market trends and insights. Here are suggested actions for industry players:

• Develop products that cater to diverse consumer needs
  Expand and customize product lineups based on gender, age, and specific skin concerns.
  
  
• Align product strategies with usage frequency and category trends
  Focus on developing products for daily usage, improving user-friendliness, and consider strategies to increase demand for face masks/eye masks.
  
  
• Optimize purchase channels and information sources
  Enhance the presence of physical stores, establish partnerships with drugstores and shopping centers, and leverage word-of-mouth recommendations and brand official websites for effective information dissemination.

The Japanese skincare market presents significant potential, and by understanding consumer needs and implementing strategic approaches, companies can thrive in this dynamic industry.

Reference:

1. Japan Cosmetics and Personal Care Industry Update (trade.gov)
2. Japan Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026 (globaldata.com)