Cosmetic Contract Manufacturing Market in Japan: Key Research Findings 2016
Research Outline
- Research period: From April to June, 2016
- Research targets: Cosmetic contract manufacturing market players, brand manufacturers, and etc.
- Research methodologies: Face-to-face interviews, mail-in-questionnaire, and literature research
What is the cosmetic contract manufacturing market?
The cosmetic contract manufacturing market in this research indicates a market where commission manufacturers produce items such as skincare, makeup, hair-care, and other cosmetic products based on the requests from the clients who are cosmetic brand makers and retailers. The market size is calculated based on the sales of the cosmetic contract manufacturers.
Summary of Research Findings
- Size of Cosmetic Contract Manufacturing Market in FY2015 Attained 240.3 Billion Yen, 105.5% of Size of Previous Fiscal Year
The cosmetic contract manufacturing market in FY2015 achieved 240.3 billion yen, 105.5% of the size of the preceding fiscal year, based on the sales of the businesses. The market growth seems to stem from the following three reasons driven by the revised Pharmaceutical Affairs Act taken effect in 2005: Shifting of cosmetic brand makers to outsource their product manufacturing; expansion of inbound tourism demands; and increased export of Japanese cosmetic products to Asia and other countries.
- With Cosmetic Contract Manufacturers Market On the Rise, Expected to Attain 286.1 Billion Yen by FY2020
Considering the future cosmetic demands in the domestic market, the leading cosmetic brand makers have clarified their business portfolio to position and realign their brands and products in the conventional multi-brands/multichannel systems. Aiming for such business streamlining, further outsourcing at the domestic cosmetic manufacturers is likely to proceed. In addition, the market can expect the benefits from inbound tourism consumption and expansion of outbound initiatives stemming from exports of highly-praised, domestically manufactured cosmetics.
The cosmetic contract manufacturing market in FY2016 is expected to achieve 250.4 billion yen, 104.2% of the size of the previous fiscal year, based on the sales of the businesses. The market is projected to achieve 286.1 billion yen by FY2020, 119.1% of the size of FY2015.
- Figure 1: Transition and Forecast of Cosmetic Contract Manufacturing Market Size
