No.2741
Cosmetic Contract Manufacturing Market in Japan: Key Research Findings 2021
Cosmetic Contract Manufacturing Market for FY2020 Declined by 6.3% as COVID-19 Crisis Depressed Domestic Economy and Inbound Tourism Demand
Yano Research Institute (the President, Takashi Mizukoshi) conducted a survey of the domestic cosmetic Contract Manufacturing market, and found out the current status, market player trends, and future perspective.
Market Overview
The domestic cosmetic OEM market in FY2020 diminished to 93.7% of the size of the previous fiscal year, generating 314,000 million yen (based on the sales at the cosmetic OEMs). The sharp drop indicates how gravely the COVID-19 pandemic wounded the market.
The market expansion up to FY2019 was brought about by 1) the domestic OEM market being invigorated by enforcement of the revised Pharmaceutical Affairs Act, 2) increased consumption of Japanese cosmetic products by the ‘inbound tourist’ (foreign tourists visiting Japan), and 3) expanded demand for Japanese cosmetics distribution business overseas, i.e. outbound business, including cross-border e-commerce.
Nevertheless, the inbound tourism demand became sluggish in the latter half of FY2019 mainly due to China’s new e-commerce law, followed by the spread of COVID-19 in 2020, which dealt a huge blow to the domestic economy and general consumption, as well as reducing the foreign tourists demand. For these reasons, the demand for cosmetic products in and out of the country decreased considerably, which led the OEM market to take a downturn likewise.
Noteworthy Topics
Global Outbreak of COVID-19 Led to Substantial Decline in Inbound Tourism Demand
China's new e-commerce law that has taken effect in January 2019 caused a significant drop in inbound tourism demand since the latter half of 2019. Furthermore, COVID-19 border measures imposed by countries around the world from early 2020, which included travel restrictions, had a major impact on the demand for Japanese cosmetics.
Future Outlook
Owing to the negative influence of COVID-19 from a preceding year, the domestic cosmetic contract manufacturing market size for FY2021 is forecasted to drop to 94.7% of that of the preceding year to 297,500 million yen (based on the sales at businesses).
However, the demand for cosmetics is expected to turn for the better from the end of FY2021 to early FY2022, as vaccination coverage increases in the latter half of 2021, which may soften restrictions on business activities at retail stores. General consumption is expected to recover as consumers start to go out again.
The cosmetic contract manufacturing market is forecasted to generate 315,200 million yen by FY2025, 100.4% of the size of FY2020.
Research Outline
2.Research Object： Cosmetics contract manufacturers, cosmetic container manufacturers, raw material suppliers, cosmetics brand owners, other related enterprises & organizations
3.Research Methogology： Face-to-face interviews by our expert researchers (including online interviews), survey via telephone, mail-in questionnaire, and literature research
The Cosmetic Contract Manufacturing Market
The cosmetic contract manufacturing in this research indicates the production of skincare, makeup, haircare, and other cosmetics products on consignment basis upon requests from cosmetic brand owners or the companies that made entry to the cosmetics market from other industries. The market comprises of the contract manufacturing market (contract manufacturers), the cosmetic containers market (container makers and dealers), and the cosmetic raw material market (raw material suppliers and trading companies).
＜Products and Services in the Market＞
Cosmetic products (skincare, makeup, haircare, and other cosmetic products), cosmetics containers, cosmetic raw materials
Published Report
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