Nina Jobst
Research expert covering South Korea
Cosmetics market in Japan - statistics & facts
“Less is more” is the motto of J-beauty, the latter originating from one of the world’s largest cosmetics markets. Japan is home to multinational cosmetics enterprises that tap into traditional know-how and modern technology to innovate beauty routines. The main target group are female consumers, but submarkets like men’s beauty are growing rapidly amid changing perceptions of beauty ideals. The status quo is further shaken up by gender-neutral brands and imported beauty trends, that force J-beauty to go with the time.
Department stores have benefited from the demand for prestige brands and beauty consultations for a long time, but the growth of private labels in the skincare segment highlights the polarization of beauty purchases amid challenging economic conditions. Trends are changing rapidly, and the prestige of a brand is no longer the only factor that consumers consider before buying a product.
Japanese cosmetics giants
Japanese cosmetics are split into two main categories: general cosmetics and stricter regulated quasi-drugs like medicated cosmetics that can advertise functional claims on the packaging. These strict regulations benefit the image of J-beauty products, which are valued for their high quality and product safety in the global market. Market leaders like Shiseido, Kao Corporation, and Kosé Corporation are particularly represented in the prestige segment, while their extended brands and subsidiaries cater to the mass and mid-price segments. Emerging brands are aiming for lower price segments, in which the competition has intensified because of affordable and quality private brands that are backed by a fast-developing contract manufacturing market. Drugstores' in-house brands, in particular, have garnered online users’ attention through positive word-of-mouth reviews on social media.Skincare is at the center of beauty routines
Beauty products form a trillion Japanese yen market, with strong high- and mid-priced segments. Shiny, moisturized skin that gives the face a healthy glow and shows only a subtle use of beautifying cosmetics is characteristic of J-beauty. Although the concept focuses on minimalistic routines, the market does not lack product variations. Manufacturers’ diverse brand and product portfolios reflect the highly different consumption patterns of male and female consumers. However, skincare is by far the largest cosmetics segment, owing to products that are also widely in use in general personal care. Sun protection is the baseline of skincare throughout the year. As extreme weather conditions are becoming more frequent in Japan, technologies that recover and protect the skin barrier are growing in demand.Department stores have benefited from the demand for prestige brands and beauty consultations for a long time, but the growth of private labels in the skincare segment highlights the polarization of beauty purchases amid challenging economic conditions. Trends are changing rapidly, and the prestige of a brand is no longer the only factor that consumers consider before buying a product.
