According to latest research from Euromonitor International, the market for premium beauty products grew at 7 per cent in 2012 to reach an estimated value of $232m, marking a sustained and accelerating growth pattern for the category over the past few years.
According to Euromonitor’s report, entitled: Super Premium Beauty and Personal Care in Singapore, this growth is being fuelled by the fact that continued economic growth in the state is giving the average Singaporean higher disposable incomes.
This, combined with the fact that consumers there have long had a love affair with luxury goods because of the greater perception of the premium quality seen in super premium brands, is helping to push sales within this category at beauty counters and retail outlets across Singapore.
Sustained future growth for the premium category
Euromonitor researchers believe that beauty sales within this category will be sustained over the next few years, as the economy re mains one of the most stable and best managed in the Asia Pacific region.
Another market research company, RNCOS, recently released data predicting that the overall market for cosmetics in the country, which includes mass market products, will continue to grow at a CAGR of 4 per cent during the period 2013 – 2017, a figure that still puts it well ahead of global projections for the market.
With a population of just over 5.5 million, Singapore appears tiny compared to Asia Pacific giants such as China and India, but with a GDP in excess of $50,000 and one of the highest spends on luxury goods in the entire region, the room to further develop spend on cosmetics is significant.
Mass and luxury international players aiming for bigger market share
Key players in the country’s cosmetics market are those focused on the luxury end of spectrum, including names like L’Oreal, Shiseido, Estee Lauder and LVMH, but bigger mass market players such as Beiersdorf and Procter & Gamble also have a firm footing there.
Likewise, back in July mass market giant Unilever announced a $56m investment in the Singapore market for a state of the art training facility with a 2,800 people capacity, which is the first of its kind outside of the domestic UK market.
In particular, it is the international players that are successfully increasing their share of the market in the country with aggressive marketing campaigns that target increasingly sophisticated and innovative products.
Meanwhile, on the supplier side, Givaudan opened up a new facility back in July to grow its fragrance and compounding operations both in Southeast Asia and the Asia pacific region as a whole.