Although China has long been tipped as the next big market for international cosmetics companies to target, experts are now turning their focus on Indonesia and Turkey as the next hotly tipped place for investment.
According to market analysts Euromonitor, many international cosmetics companies are either currently considering investment in these two fast-evolving markets or have recently made the plunge.
Euromonitor says that in Indonesia the cosmetics and toiletries market is predicted to grow by over 34 per cent, whereas in Turkey, recovery from recent economic turmoil means that long term growth looks far more assured.
In both countries sustained growth is expected to be experienced in the next few years on the back of exceptionally high GDP, which is being complemented by large and fast-growing populations.
"Both Indonesia and Turkey have the makings of important consumer markets. Both countries are characterised by rapid urbanisation, emerging middle classes and low cosmetics usage, making them the perfect target markets for multinational companies," said Diana Dodson, senior cosmetics and toiletries Industry analyst at Euromonitor International.
Euromonitor says that an increasing occupation with appearance is helping to drive the market for personal care products in a backset to a consumer market that is fast evolving and becoming increasingly sophisticated.
Sales of anti-aging ingredients, for example, increased by 27 per cent in 2006 and are forecast to grow by a total of 145 per cent by 2011.
Likewise, in Turkey, the market is also rapidly evolving, and in turn becoming increasingly sophisticated, leading to a big surge in masstige products.
Euromonitor notes that as a result, brands such as L'Oreal Paris and Procter & Gamble's Max Factor are becoming increasingly popular, as, although deemed to be expensive, they are associated with quality.
Cashing in on the growth and evolution of these companies is the major international cosmetic players, with Unilever currently accounting for approximately 6 out of ten of all cosmetic products currently brought in Indonesia.
"Foreign brands are perceived as being more effective and of a higher quality than their home-grown competitors," said Dodson. "Companies that will out-perform the rest are those that own highly recognisable brands but also offer specialised lines for Asian skin".
Likewise, in Turkey, the multinationals are also leading the way, investing significantly amounts on launching increasingly innovative and effective products.
However, Dodson also points out that, particular to this market, foreign brands do not have the same kind of 'instant' status, which means that they have to compete more fiercely with domestic brands.