Insight by Leah

Following up on our recent post on India as a growth engine for the cosmetics industry, experts have eyed the Asian market in general to be a main driver of growth for beauty companies.  Despite the dismal global economy, the region is predicted to have 5% growth in 2009 and 2010.  The global beauty industry will have to respond quickly to this emerging market both in marketing strategy and in product release.

Happi.com Excerpt:

The International Monetary Fund predicts that Asia will continue to be the fastest developing region in the global economy this year, with local emerging markets peaking at 5% growth.

The cosmetics and toiletries industry in the Asia Pacific region stood at $74.2 billion in 2008 (retail value) and market research company Euromonitor is forecasting 5% growth in 2009 plus a further 5% increase in 2010.  With five months to go before In-Cosmetics Asia (Oct. 13-15), traffic to in-cosmeticsasia.com is up by 44% compared to 2008. Heading the top Asian country rankings is the show’s home market, Singapore, closely followed by India, China, Thailand, South Korea and Japan.

Read the complete article.

Insight by Leah

A recent report indicated that the cosmetics industry in India alone grew 7.5% between 2006 and 2008, highlighting the increased importance of this emerging market.  Even with the economic slowdown that is affecting all global markets, the make-up industry is expected to maintain strong growth in the coming years.  Analysts point to both increased awareness of products through media outlets as well as a growing middle class in the country.  Further, experts believe that this market is still under-served, and will only continue to surge ahead.  Given L’Oreal’s recent signing of Indian actress Frieda Pinto as a global spokeswoman, there is no doubt that other companies will also attempt to reach this and other expanding markets in Asia.

Happi.com Excerpt:

The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008, according to Research and Markets. With improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum (with marginal slowdown due to economic slowdown) during the forecast period (2009-2012). It is projected to grow at a CAGR of around 7% during the forecast period, according to Research and Markets. Both electronic as well as print media are playing an important role in spreading awareness about cosmetic products and developing fashion consciousness among the Indian consumers. With the introduction of satellite television and a number of television channels as well as the Internet, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fuelling growth in the industry by making Indians to realize the importance of having good looks and appearances. Read the complete article on Happi.com.