Market Overview

The domestic natural & organic cosmetics market size for FY2022 is estimated at 173,300 million yen, 105.5% of the size of the previous fiscal year, based on the shipment values at brand manufacturers. The growth owes to the understanding and awareness of the market through rising interests in behaviors and lifestyles conscious of environmental conservation including the ideas of SDGs and sustainability. Recovery of turnout at physical stores after the lift of activity restrictions and increase in the sales of cosmetics manufacturers that have their own stores to operate have also affected to the market growth for FY2022.

From FY2020 to FY2021, while an increasing number of consumers has become willing to lead a lifestyle conscious of sustainable society and well-being in Japan, some of emerging brands have grown enormously to 10-billion-yen-scale companies even amid the corona crisis by directly operating their own ecommerce sites as their main sales channel for their products. Their digital marketing, sending contactless messages to customers, too, has brought about effective results.
Meanwhile, customer attraction has been observed for existing brand-owned physical stores by renewing them into “experiencing” types by letting customers to actually try the products. Multichannel retailing has considerably contributed to the market growth. The market has been uptrend for FY2022, though not as much as the previous fiscal year.

Noteworthy Topics

Brand Communications for Differentiation

Boosted by the social background to respect the ideas of sustainability and well-being, the awareness of natural and organic cosmetics is expected to increase furthermore. On the other hand, now that appeals of “natural” or “organic” have gradually established, something extra may be needed for product appeal hereafter.

The target customer base for natural or organic cosmetics should be those with sensitive skins or those who are interested in environmental conservation. One of the reasons for such narrowness in target is that the natural & organic cosmetics market within the entire cosmetics market is limited.
If taken a measure to extend the target to various consumers aiming to expand the market size, it can ruin the goodness of natural or organic cosmetics products. A sense of balance is regarded as the challenge for each brand. To expand the market, the brand communication will be significant, such as how to appeal the brand to limited customers or how to acquire new users.

Future Outlook

The domestic natural & organic cosmetics market size for FY2023 is projected to reach 179,200 million yen, 103.4% of the size of the preceding fiscal year.
Even amid the corona crisis the natural & organic cosmetics market has managed a slight increase, while many other markets have been forced to shrink. With the interests in ideas of sustainability and SDGs have kept rising in 2023, the market, that has grown side by side with such social background, is expected to continue growing at gradual paces, with growth rate slowing down.

Research Outline