Asia Pacific still bright spot for beauty, personal care amid pandemic

The Asia Pacific region will continue to be a “bright spot” for the beauty and personal care industry even amid the coronavirus disease 2019 (Covid-19), as e-commerce softens the economic blow of the pandemic.

Gabriella Beckwith, senior research analyst at Euromonitor International, attributed this to the region’s systematically better response to the pandemic.

“It is expected to recover ahead of other regions. However, a slower global recovery is expected due to the potential for a second wave (of Covid-19)…,” she said in the Euromonitor Digest, a monthly online publication of the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB).

The report cited projections of global beauty and personal care value sales growing at a 1.5 percent compound annual growth rate (CAGR) from 2019 to 2024 at constant 2019 prices. These forecasts are a U-turn from the industry’s 2014-2019 CAGR of 5 percent globally.

Beckwith said beauty and personal care has shown it is relatively more resilient to the impact of the pandemic than other non-essential fast-moving consumer goods (FMCG) industries.

“Beauty players must consider how to navigate the “new normal” in a frequently-changing environment,” she said.

Beckwith also underscored many of the trends that were influencing the beauty and personal care industry last year that would be amplified in 2020 and beyond.

“Channel diversification and digital engagement will be more important than ever,” she said. “Beauty players should aim to build better virtual experiences while cementing new points of sale within social networks and live streaming. The shift to digital should also be seen as a longer-term opportunity to create online platforms and communities for product discovery, advice, and sharing at a time of heightened uncertainty, insecurity, and anxiety.”

Moreover, Beckwith said the transition from sustainability to purpose will be a long-term change.

“The factors that were driving sustainability pre-pandemic are still present, but now sustainability is shifting so that purpose is the key part of corporate strategy,” she said.

In the immediate outbreak, the beauty industry responded swiftly by repurposing operations to meet the global shortage of hand sanitizer, Beckwith said.

“Sustainability will evolve in importance for beauty players while putting people over profit will rank high among consumers’ expectations for the beauty industry. Brands will be expected to display greater transparency across their entire supply chain, as consumers prioritize credentials such as safety, transparency, and ethical sourcing,” she added.

Beckwith further said the Covid-19 pandemic is accelerating all wellness-related micro-trends, with the “clean” to “conscious”movement will be reinforced as consumers recognize that natural does not necessarily translate as better.

“Consumers will be searching for brands or products with a strong alignment to health, safety, immunity, therapeutics, and an association with overall wellness,” she said.

Close Menu