Earthquakes, a serious tsunami and the subsequent nuclear reactor leak in Fukushima, have all had a significant impact on how Japanese consumers spend their money, which is translating into growth in a few very specialised categories.
According to a new report by the Ken Group, the per capita expenditure on the healthcare segment grew by 3.4% a year during the period 2007 – 2012, which in turn has resulted in an uptick in expense on medicated skin and hair care products.
Disasters have driven the growth
For the purpose of this study, entititled Japan Cosmeceuticals Industry Outlook to 2017 – Shifting Consumer Attention to Economical Products, medicated cosmetics refers to cosmeceutical and dermaceutical products that incorporate pharmaceutical-style ingredients to formulations.
The report also points to the fact that, partly due to the natural disasters that have hit the country, the growth in demand for these medicated skin care and hair care products has fluctuated significantly over the five year period, reflecting the pressure on healthcare caused by the human impact of the disasters.
However, the researchers also point out their belief that the growth in the healthcare segment, and in turn the demand for such medicated products, will be sustained on account of continuing demographic and lifestyle changes in the country.
Growth also being fuelled by urbanization
Specific to this, the report highlights demographic changes such as rising urbanization, which is causing consumers to shift their priorities towards a greater emphasis on health and well-being.
The researchers point to the fact that the urban population in Japan is anticipated to grow at an average annual growth rate of 1.6% in the next five years from 2012-2017 reaching to 126.2 million in 2017, a factor that is expected to continue to drive demand for medicated skin care and health care products.
In Japan, products being marketed in these categories have largely fallen into the skin care area, and claims have invariably focused on anti-ageing, during the course of the last five years.
Asia set to be the stage for growth in cosmeceuticals
Last year research firm RNCOS pointed to the fact that a strong foothold among the Asian countries would be the driving force behind the global cosmeceutical market, which was anticipated to grow at a CAGR of over 9 percent during 2012-2014.
The global cosmeceutical market has a large number of market players, including both pharmaceutical ingredient manufacturers and cosmetic companies; all focused on the commercialization of their new products.
The market researcher pointed to the fact that consistent market launches keep a particular company in news and this, in turn, facilitates the market share augmentation process, with the opportunity for the major players in the next few years being highlighted in Asia as demand increases.