Beauty from within: wellness mix in skin care Sunny Um Senior Analyst, Beauty & Fashion
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5 Industry snapshot
Asia Pacific North America Western Europe Latin America Middle East/Africa Eastern Europe Australasia US$ Billion CAGR % INDUSTRY SNAPSHOT 6 Asia leads global beauty and personal care sales 160 Beauty and personal care value sales by region (constant, US$ fixed 2017) 5 2017-2022 value increase 140 120 100 80 60 40 4 4 3 3 2 2 1 Western Europe US $5 billion 20 1 0 2017 2012 2017-2022 CAGR % 0 North America US $9 billion Asia Pacific US $33 billion Source: Euromonitor International; 2017-2022 value increase is an estimate
INDUSTRY SNAPSHOT 7 Asians are obsessed with skin care N. America W. Europe L. America APAC Skin Care MEA E. Europe Australasia Source: Euromonitor International
8 Fighting against stressors
Pollution, stress and digital fatigue cause breakouts IN THE MEDIA 9 9
FIGHTING AGAINST STRESSORS 10 Beauty Survey: blemish/acne is a major concern in Asia Top 5 skin concerns: Millennials, 2017 Thailand Whiteheads Blemish/acne-prone Sensitive Dark spots Blackheads Blackheads Blemish/acne-prone Indonesia Acne pits India Dark circles Dark circles Whiteheads Dark spots Blackheads Sensitive Blemish/acne-prone China Blackheads Blemish/acne-prone Dark circles Sensitive Japan Blemish/acne-prone Blackheads Dark circles Dark spots South Korea Blackheads Blemish/acne-prone Sensitive Acne pits Fine lines Acne pits Dark circles Source: Euromonitor Beauty Survey 2017
FIGHTING AGAINST STRESSORS 11 Highly educated consumers; high concern Skin concerns: 2015 vs 2017, Asia Blemish/acne-prone Sensitive Redness-prone Eczema-prone 2017 2015 Other 0% 10% 20% 30% 40% % of Millennials respondents Source: Euromonitor Beauty Survey 2017
% Millennial respondents FIGHTING AGAINST STRESSORS 12 Key demand: natural and free-from Desired Product Features: Eco- or Ethically-Friendly Detail Asia, 2015 vs 2017 40% 35% 30% 25% 20% 15% 10% 5% 0% All natural ingredients "Free from claims All organic ingredients Plant/botanically derived ingredients 2017 2015 Fragrance free Source: Euromonitor Beauty Survey 2017
FIGHTING AGAINST STRESSORS 13 For consumers, natural means chemical free 60% Understanding Green Labels: Definition of Natural Asia, 2017 % Millennial respondents 50% 40% 30% 20% 10% 0% Chemical free Does not contain artificial additives Also organic Does not contain GMOs Healthier than nonnatural products 2017 Source: Euromonitor Lifestyle Survey 2017
FIGHTING AGAINST STRESSORS 14 Spotlight on microbiome: good bacteria Jan, 2018 Sources: Unilever Ventures; Gallinee
15 Ingestible beauty
INGESTIBLE BEAUTY 16 Beauty players expand to supplements AMOREPACIFIC: VITAL BEAUTIE LG H&H: LIFE GARDEN Ginseng Extract Ampoule Red ginseng; energising Meta Green Green tea extract; body fat and cholesterol reduction Hwanghudan Fermented red ginseng; energising Yegamhwan Green tea extract; body fat and cholesterol reduction Liver Prime Milk thistle extract; liver health Gangibo Milk thistle extract; liver health Sources: Vital Beautie; LG Life Garden
US$ billion INGESTIBLE BEAUTY 17 Benefits of ingestible beauty for business 2017 dietary supplements sales 01 Ageless 30 25 20 02 Genderless 15 10 03 Trust in supplements 5 0 Asia Pacific North America Western Europe Source: Euromonitor Consumer Health 2019 edition Herbal/traditional supplements Non-herbal/traditional supplements
18 Well-being beauty in retail
% Millennial respondents % Millennial respondents WELL-BEING BEAUTY IN RETAIL 19 The value of in-store experience persists Beauty and personal care: path to purchase, Asia 50% Purchase channel 50% Research channel 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% On smartphone On computer or tablet In store/in person 0% On smartphone On computer or tablet In store/in person 2016 2017 2016 2017 Source: Euromonitor Lifestyle Survey 2017
US: Philosophy Wellbeing Workshop Source: Philosophy; WWD
21 Outlook: what s next?
US$ OUTLOOK: WHAT S NEXT? 22 Ample room for growth in Asia 80 Per-capita spend on skin care: 2017 (constant, US$ fixed 2017) 60 40 20 0 Australasia North America Western Europe Asia Pacific Eastern Europe Latin America Middle East and Africa Source: Euromonitor International
Thank you Sunny Um, senior analyst Beauty & Fashion Sunny.Um@Euromonitor.com Facebook.com/euromonitor @Euromonitor Linkedin.com/company/euromonitor-international/