The Future of Surface Care in Modern Living: Asia Pacific – Japan and The Tigers

Asia Pacific a unique regional market

Asia Pacific is set to lead the world in terms of value growth in surface care over 2014-2019, with forecast absolute value growth in excess US$1.1 billion, accounting for half of the global total. Growth potential could be further boosted due to its unique regional characteristics, combining developed, emerging and frontier markets.

China to lead the region in surface care growth

Surface care consumption is set to become mainstream in China, driven by rising disposable incomes and the Westernisation of home care culture. Demand by format is closely related to lifestyle and living environment, which exposes underdeveloped categories that appear ripe for further development, such as floor cleaners, and wipes and floor cleaning systems.

Japan indicates future consumption patterns

Japan is arguably the most advanced economy in the region, and demand for surface care has become highly saturated. While the market still has opportunities for growth, especially for products orientated towards its ageing population, its position as a generator of future trends may outweigh its overall growth potential.

Frontier markets offer long-term opportunities

While India is home to a huge population (second only to China), it offers only limited growth potential, as a result of low average incomes and the prevalence of alternatives. Indonesia, however, appears to offer a much more appealing opportunity, given its strategic importance in terms of geographic location in Southeast Asia. It combines large households and consumers’ attitude of “spend rather than save”, which has hastened the development of more modern modes of living.

A varied Asia Pacific requires multiple approaches

Overall, potential for growth in Asia Pacific exists in all three economic clusters, meaning companies looking to dominate the region require a multidiscipline approach to span three very different market realities.