RESEARCH SUMMARY -Latest Outcome of Our Research-

07/07/10

Toiletries Market: Key Research Findings 2010

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Research Outline

Yano Research Institute has conducted a study on the toiletries market as described below.

 

1.       Research period: April to June, 2010
2.       Research targets: Toiletry products manufacturers, and related enterprises
3.       Research methodologies:
Face-to-face interviews with relevant personnel, supplemented by interviews via telephone and e-mail, and literature researches.
<What is Toiletries Market?>
In this research, toiletries (toiletry products) market is defined to be comprised of 40 items in 5 product segments: “Household care products/detergents (13 items)”, “Hair care products (2 items)”, “Face/body care products (9 items)”, “Oral care products (6 items)” and “Sanitary products (10 items)”, mainly distributed and sold through the sales channels for miscellaneous daily goods. The market size has been estimated based on the shipment in value from the manufacturers.

Summary of Research Findings

 

    Key Findings
· The size of toiletries market in fiscal 2009 was 1,745.6 billion yen, 101.6% against previous year
The size of the toiletries market in fiscal 2009 is estimated to be 1,745.6 billion yen, 101.6% year-on-year, based on the shipment in value from the manufacturers. Each manufacturer is actively introducing highly value-added products in view of differentiating their products from the commodity items. Also notable is the growth of the products which emphasize emotional aspects such as “fragrance”, and the products associated with the aging society. 
 
· Expansion into overseas market is a key to achieve the business expansion
As the domestic market is not likely to grow substantially due to the decrease of population in aging society with declining birth rate, manufacturers are expected to positively expand their business into overseas markets, especially into remarkably growing Asian markets such as China. Compared to foreign affiliated manufacturers, domestic manufacturers are having much smaller market shares in the overseas markets, and the capture of demands in overseas markets will be a key to expand the market in the future.

 

    Research Summary
1.    Overview of the toiletries market
The size of the toiletries market in fiscal 2009 is estimated to be 1,745.6 billion yen, 101.6% year-on-year, based on the shipment in value from the manufacturers. Remarkable trends in the recent toiletries market include the followings.
As to the products, the launch of high value-added products has become active, aiming to differentiate their products from “commodities”. Different from the similar trends in the past, increasing numbers of manufacturers are trying to differentiate their products by emotional value (fragrance, design, etc.) in addition to their functionality. “Fragrance”, especially, is a key issue not only for aromatics & deodorants, but for all toiletry products including fabric softener, clothes detergents, insect repellents, body soaps, and so forth. 
Secondly, the growth rate of the products related to the aging society has become higher. Along with the advancement of aging society with a low birth rate, adult-use disposable diapers, mild incontinence articles, hair dye products and the like have been rapidly growing.
Thirdly, the disinfection/sterilization related market is also growing fast. In addition to the enhanced consumer interests in disinfection/sterilization, the spread of new influenza has increased the demand for home-use masks, hand-soaps, kitchen detergents and bleaching agents and so forth.   
In regard to distribution and sales promotion, shop floor designing linked to mass-media advertisements has become important, because many people decide which brand of toiletry products to purchase at the store.
As a future trend of the industry, positive expansion into the overseas market is expected. Due to the decrease of population in the aging society with a low birth rate, it is difficult to expect substantial growth of the domestic market. The manufacturers, therefore, are likely to positively engage in expanding into the rapidly growing Asian markets including China. Currently, the market share of the domestic manufacturers is much smaller than foreign affiliated manufacturers, and the establishment of their positioning in the overseas market will be an indispensable prerequisite for their future business development. .
2. Trend by market segment
2-1. Household-care /detergent related products market
The household-care/detergent related products market in fiscal 2009 is estimated to be 574.75 billion yen, 101.5% year-on-year, based on the shipment in value from the manufacturers. The introduction of foam and jell type products, and highly value-added products with the addition of green-tea or fruit ingredients has increased the average unit price and the kitchen detergent market has grown. Although the clothes detergent market in total has slightly decreased, the growth of liquid-type detergents was notable. 
2-2. Hair care products market
The hair care products market in fiscal 2009 is estimated to be 120.7 billion yen, 102.8% year-on-year, based on the shipment in value from the manufacturers.
Both general-use hair color and hair-growth tonic/formula markets have slightly increased from the previous year. Among the general-use hair color products, hairdye products (to conceal grey hair) were especially strong. From now on, the demand of hairdye for Generation Y with greater portion of the population will increase, and the market is expected to continue strong. 
2-3. Face/body care products market
The face/body care products market in fiscal 2009 is estimated to be 218.56 billion yen, 103.5% year-on-year, based on the shipment in value from the manufacturers.
Due to the increased awareness of disinfection impacted by the spread of new influenza, the hand soap market has grown remarkably by 1.5 times compared to the previous year.
 
 
2-4. Oral care products market
The oral care products market in fiscal 2009 is estimated to be 154.15 billion yen, 100.3% year-on-year, based on the shipment in value from the manufacturers.
Due to the increasing awareness of oral care among the consumers, the use of mouthwashes and dental articles (such as interdental brush, dental floss, etc.) has become a custom, and the market has been strong. 
2-5. Sanitary products market
The sanitary products market in fiscal 2009 is estimated to be 677.51 billion yen, 101.3% year-on-year, based on the shipment in value from the manufacturers.
Along with the progress of aged society, adult-use disposable diapers and mild incontinence articles have increased. In addition, the home-use mask market has grown considerably due to the spread of new influenza.
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Published Report

Report Title: Toiletries Market 2010

*The information provided in the "Research Summary" is what is as of the date of announcement and could be altered or renewed without any prior notice.

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