Skin Care in Asia Pacific

Key findings

Healthy sales increases over the historic period

Skin care sales were increasing at steady annual growth rates of 6-7% in Asia Pacific in recent years, with China, in particular, helping to drive these increases. Factors like anti-ageing and clean beauty were visible trends across the region, while e-commerce had grown to become the biggest individual retail distribution channel.

Pandemic disrupts skin care in 2020

Many markets in the region, including China, saw a slightly worse skin care performance against the backdrop of the pandemic in 2020, with some countries, eg Japan, seeing big sales declines. COVID-19, or, more precisely, the measures taken to control its spread, including store closures and lockdowns, disrupted skin care sales. Hand care sales benefited from the additional washing and sanitising of hands during the pandemic, while “soothing” was a key theme as consumers sought products to relieve skin problems caused or exacerbated by the frequent use of face masks.

E-commerce a major “winner” in 2020

E-commerce recorded strong growth during the pandemic, particularly during lockdown periods, but also with consumers looking for ways of minimising their exposure to the COVID-19 virus. Internet retailing accounted for more than a third of sales in both China and South Korea in 2020, with companies becoming more digitally active during the pandemic. Skin care is also an industry in which players make extensive use of livestreaming, particularly in China, as it enables brands to demonstrate products, engage with consumers and distribute exclusive coupons.

Strong growth over the forecast period

Chinese growth rates will strengthen again from 2021, while Japan will return to positive territory from this year, with Asia Pacific as a whole expected to see healthy annual growth rates over the forecast period.