PETALING JAYA: While the global retail industry is experiencing difficulties caused by the Covid-19 pandemic, the beauty industry has great business potential, especially Taiwan’s beauty industry which has risen to the forefront.
Taiwan’s beauty market was developed early, and sales of beauty products are expected to increase to US$6.93 billion (RM29 billion) in 2025, with a compound annual growth rate (CAGR) of 4.5%, from US$5 billion in 2018.
Citing a Fortune Business Insights report, Taiwan External Trade Development Council (Taitra) president and CEO Walter Yeh said the global beauty market was worth more than US$297.61 billion in 2018 and is projected to reach US$438.38 billion by 2026, exhibiting a CAGR of 5.1% during the forecast period.
Geographically, Asia Pacific accounts for 41% of the global beauty market, followed by North America (24%), Western Europe (18%).
Dermatologist and Yuan Li Aesthetic Medical Group founder Dr Grace Liao Yuan Li said the beauty market is known as the fifth largest “consumption hotspot” after real estate, automobiles, electronic communications and tourism. The Southeast Asian market has one of the highest growth rates in the world.
“Skincare products account for 40% of the overall beauty market share and contribute nearly 60% to the growth of the global beauty market,“ she said at the “Beauty and masks: Taiwan Excellence online product launch” on Wednesday.
In Southeast Asia’s beauty market, skincare sales accounted for 28.01%, followed by hair condition (14.81%), makeup perfume (20.32%) and others (36.86%).
Indonesia accounts for the largest proportion (35.53%) of the beauty market in Southeast Asia, followed by Thailand (21.60%), Vietnam (12.86%), Taiwan (11.96%), Malaysia (2.48%) and others (15.77%).
Although most consumers prefer to shop through traditional channels, as traditional sales constitute 91.36% of the beauty sales market share in major regions of Southeast Asia, beauty brands are being forced into take the digital transformation to overcome the Covid-19 crisis.
Liao revealed that essence and lotion saw the highest increase among the attributes of skincare products in the first half of 2020.
“In the future, the main focus of skin improvement will be on face care and body care,“ she said.
Meanwhile, five Taiwan Excellence Award winners Perfect Corp, ShannHonq, O’right, Shinybrands and Annie’s Way from the beauty industry demonstrated their most innovative products during the online event.
The event also covered how brands passed global standards, including the halal or the Indonesian Food and Drug Authority (BPOM) certifications, which are essential for entering Southeast Asian markets.
The event, which was jointly held by Taitra and the Taiwan’s Bureau of Foreign Trade, attracted over 3,000 views online from countries including Malaysia, India, Indonesia, the Philippines, Singapore and Thailand.
More events will be held by Taiwan Excellence that focus on medical products, including eye care, assistance devices for the elderly and dentistry.
source https://www.thesundaily.my/business/beauty-products-from-taiwan-unmasked-LY3724386
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