No.2199
09/26/2019

Cosmetics Contract Manufacturing, Container and Ingredients Market in Japan: Key Research Findings 2019

Market Expands as Newcomers across Industries Increased and Outsourcing Driven by the Trend of Splitting Production and Sales (at Cosmetic Manufacturers)



Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on cosmetics contract manufacturing market in Japan, and has found out the current market conditions, the trend by market players, and the future outlook. 


Market Size Transition and Forecast of Domestic Cosmetic Contract Manufacturing
Market Size Transition and Forecast of Domestic Cosmetic Contract Manufacturing

Market Overview

In FY2018, the market size of the cosmetics contract manufacturing in Japan grew by 12.1% from the preceding fiscal year to attain 325,000 million yen. Since the revision of Pharmaceutical Affairs Law in 2005 which deregulated the market entry, the production outsourcing to the contract manufacturers by the cosmetic brands and the newcomers across industries is expanding.

Moreover, as the inbound demand that scaled down for a while is making an upward turn, and as the outbound demand (local demand at the destination of export) keeps on expanding, the increased production of Japanese cosmetics continues and the cosmetics contract manufacturing market shows steady growth.

Noteworthy Topics

The Market Show Stable Growth as Tariff Reduction Proved Effective, despite the Decrease in Chinese Inbound Tourists Caused by China’s New E-Commerce Law

Under the China’s new e-commerce law enforced in January 2019, the Chinese “social buyers” (individuals doing business through online channels) are obligated to register officially in order to obtain a business license. There is a growing concern that this may decrease the number of Chinese inbound tourists who purchase the cosmetic products as the agents.


On the other hand, the export of Japanese cosmetics (outbound) is increasing, driven by the drastic tariff reduction on the household products in July 2018, which included the cosmetic products such as skincare products and hair styling products. 

Future Outlook

In the cosmetics market in Japan, the production hike is continuing due to the rise in the domestic consumption (domestic needs) and the overseas’ demand for Japanese cosmetics. With increasing number of contracted manufacturing (outsourcing) by cosmetics brands and newcomers across the industry, the cosmetic contract manufacturing market in FY2019 is estimated to grow by 8.0% from the previous fiscal year to attain 351,100 million yen.

Research Outline

1.Research Period: April to July 2019
2.Research Object: Cosmetics Contract Manufacturers, Cosmetics Container Manufacturers and Dealers, Cosmetics Ingredients Traders, Cosmetics Manufacturers, related companies and associations
3.Research Methogology: Face-to-face interview by the expert researchers, survey via telephone, survey via questionnaire by mail, and literature research

Cosmetics Contract Manufacturing, Container and Ingredients Market in Japan

Cosmetics Contract Manufacturing Market in this research refers to the manufacturing market that is outsourced by the cosmetics brands (major manufacturers) and companies entering from other industries, for the production of items such as skincare products, makeup products, haircare products, and other cosmetics products.


The market consists mainly of the contracted manufacturing market (contracted manufacturers), the cosmetics container market (container manufacturers and dealers), and the cosmetics ingredients market (ingredients manufacturers and trading companies).

<Products and Services in the Market>

Cosmetic Products (skincare, make-up, haircare, and other), Cosmetic Containers, and Cosmetic Ingredients

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