September 5, 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.
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.
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.
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.
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:
The Japanese skincare market presents significant potential, and by understanding consumer needs and implementing strategic approaches, companies can thrive in this dynamic industry.