Market Overview

The domestic cosmetics market in FY2017 has attained 2,545,000 million yen, 103.0% of the size of the previous fiscal year, based on the shipment value at manufacturers. In association with growth of the entire market, all the product categories have exceeded the preceding year results. Not only the large influence of continuously increasing inbound tourism demand by foreign tourists but also increased purchase by domestic customers and improved awareness of highly functional products boosting the sales at cosmetic makers have contributed to market expansion.

When looking at the FY2017 domestic cosmetics market by product category, the category of skincare has dominated 46.6%, the largest component ratio of the entire market at 2,545,000 million yen, followed by the make-up category occupying 22.6% or 575,200 million yen, the third came the haircare accounting for 17.5% or 445,100 million yen, the next came men’s cosmetics with 4.8% or 120,900 million yen, and fragrance at 1.2% or 30,300 million yen.  Although the largest growth rate was attained by the category of make-up, skincare has driven the whole market as the primary category, now occupying 46.6%, almost half of the entire market share.

Noteworthy Topics

Skincare had already been the largest category in the entire cosmetics market, but functional serum/essence products released in FY2017 have developed into a great impact to flourish the market. Those skincare products primarily facial cleansers, toners, serums/essences, and masks acquired inbound tourism demand, which had temporarily slowed down in FY2016, have contributed to favorable sales. The items that attracted attention in FY2017 were functional serums/essences, cosmetics for sensitive skins, all-in-one gel, and natural/organic cosmetics.

Research Outline