At in-cosmetics in Barcelona last week, the Cosmetics Design team attended the market researcher's press conference where the global head of beauty and personal care, Irina Barbalova revealed the new prospective markets beyond China and Brazil.
According to the global head of beauty, international beauty firms are faced with the consolidating power of local and regional players, as well as the rapid expansion of smaller players with exclusive offerings.
"This was the first year that emerging markets did not make double digit growth," Irina tells a packed room of journalists on the first day of the event.
“And it's no surprise that the focus at in-cosmetics this year is on the Middle Eastern influence,” she adds, pinpointing Turkey, Indonesia, India and Saudi Arabia as the markets to now watch out for.
'Asia continues to inspire innovation'
The skin care market is highlighted to transform in terms of product diversification and the exploration of innovative growth concepts but remains the largest segment across most markets, with global sales expected to reach over $130 billion by 2019.
“Of all beauty segments, consumers continue to spend the most on skin care items at $15 per person annually, compared to US$10 for hair care and $7 for colour cosmetics,” says Barbalova.
“One third of global beauty revenues by 2019 will come from skin care, compared to 23 per cent between 2009 and 2014,” she adds.
In fact, Indonesia is expected to enter the top 10 global skin care markets in the same time-frame.
Asian concepts expanding internationally
The global head of beauty goes on to outline that technological developments have encouraged a demand for personalisation and unique product engagement, and Asia continues to inspire innovation in terms of new formats, textures and product benefits.
"80 per cent of global skin care revenue gains by 2019 will come from Asia, with China set to account for 75 per cent of the total regional absolute growth," Irina tells CosmeticsDesign-Asia.com.
China driven by premium skin care, is set to overtake Japan in 2019 while facial moisturizers will be major contributors, as will face masks. "70% Female Chinese use face masks every week".
Brands like Innisfree, TheFaceShop, and L'Oreal are tapping into this trend with novel formats, while halal cosmetics is becoming a big trend in Indonesia.