Sk II magic magnetic wand, page-47

Hi Brickwalls,

With almost half of global skin care sales coming from Asia-Pacific - where sales are more than double those in Western Europe - the region’s predisposition toward multi-step skin care regimes has served the category well. Japan, the leading global market in terms of skin care, had its first year of positive growth in 2012 after five years of decline, with both the premium and mass segments growing. China, which displaced the U.S. in 2011 to become the world’s second-largest market and which continues to mount the pressure on Japan, posted a 14% value compound annual growth rate (CAGR) over the last five years. Its strong momentum is expected to add a further $7 billion to the global skin care market over the forecast period, with the country assuming the number one spot from Japan in 2017.

While the main focus for skin care players remains the golden three (China, Japan and South Korea), with the latter expected to displace Germany in 2014 as the world’s fifth biggest market, Indonesia, India and Thailand are quickly gaining status as the next skin care markets to watch. Over 20% year-on-year increases in value and estimated combined added value of $2.5 billion, or around 15% of anticipated global value to 2017, have put these regions in the spotlight. As increasing urbanization and a vibrant rising middle class drive a switch from unbranded to branded goods, many of the large players are expanding their presence and investing heavily in these markets despite the presence of powerful local brands.

The U.S. and North American markets are set to remain stable, with modest CAGRs of 1% to 2017, while Western Europe will continue to struggle due to declines in Spain and Italy - a gain of just $15 million to 2017 is predicted. As the other emerging regions of Latin America, the Middle East and Africa, and Eastern Europe remain relatively weak in skin care, Asia-Pacific with its additional $11 billion, or close to 70% of overall value, will continue to be the story in the skin care category.

Euromonitor International