Market Overview

In FY2024, the demand for cosmetics was driven by consumers that go out more often (compared to pandemic years subsequently shopping more) and the penetration of premium cosmetics, as well as by the return of inbound tourists (stemming from the governmental lift on ban on individual foreign tourists and resumption of visas). The market size grew by 4.1% from the previous fiscal year to 2.580 trillion yen.
By product category, skincare products accounted for the largest share at 46.3% (1,195 billion yen), followed by make-up products at 19.7% (507 billion yen), haircare products at 19.5% (503 billion yen), men’s cosmetics at 5.2% (133 billion yen), and fragrances at 1.5% (0.038 trillion yen). Notably, this year the make-up products market slightly surpassed the haircare products market in size.

Noteworthy Topics

Cosmetics Industry in 2030

Toward 2030, companies in the cosmetics sector are expected to advance digital transformation, prompting notable structural changes. First, OMO (Online-Merge-Offline) strategies that seamlessly integrate digital and physical customer experiences are likely to become standard practice. Second, competition will intensify as imports rise not only from South Korea but also from other Asian countries such as China, Thailand, Vietnam, and Taiwan. Third, the utilization of AI will advance across the sector, enhancing each stage of the value chain, from R&D and manufacturing to distribution and retail.

Future Outlook

While the industry continues to pursue premium pricing through introduction of high-performance products, inbound demand is expected to grow further in FY2025 and beyond. Given the situation, the size of cosmetics market is forecasted to reach 2.65 trillion yen in FY2025, up by 2.7% from the preceding fiscal year.
Aligned with SDG initiatives promoted globally, enterprises are increasingly expected to operate in more ecological, ethical, and transparent ways, while consumers are showing a stronger preference for safer and sustainable beauty products. As a result, “clean beauty” is expected to become a key concept in the cosmetics industry going forward.

Research Outline