Market Overview

In FY2025, the resurgence of inbound tourism demand and progress in raising unit prices propelled Japan’s cosmetics market to 2.643 trillion yen, based on manufacturer shipment values. This figure was equivalent to 102.4% of the previous year’s size.

Despite the shrinking population, marketers' efforts to add value to cosmetic products contributed to market growth. Consumers’ prioritization of ingredients and efficacy when choosing products has also fueled the prevalence of value-added cosmetics. Additionally, advancements in formulation techniques that enable products to have both high functionality and a pleasant texture, which were previously unavailable, are increasing demand for high-value products. Market growth also stemmed from price increases due to higher costs, including ingredients.

The market composition by product category was as follows: The skincare segment occupied the largest share, accounting for 46.2% at 1.222 trillion yen. The makeup segment followed, accounting for 19.7% (521.0 billion yen). The haircare segment accounted for 19.5% (515.0 billion yen); the men’s cosmetics segment accounted for 5.1% (136.0 billion yen); and the fragrance segment accounted for 1.6% (43.0 billion yen). 

Noteworthy Topics

Keywords That Could Impact the Cosmetics Market by 2030

The following keywords could impact the cosmetics market by 2030: 1) longevity, 2) skinification, 3) darmacosmetics, 4) effortless, 5) climate adaptive skincare or beauty, and 6) neurocosmetics.

Future Outlook

Japan’s cosmetics market size is expected to reach 2.745 trillion yen by FY2030, equivalent to 103.9% of the size in FY2025. This growth is driven by continued increased unit prices due to a wider variety of products added with higher value, the increased usage by younger age groups, and a growing market for cosmetics for the elderly. Additionally, the gradual increase in foreign tourists is fueling inbound tourism demand.

Research Outline