Personal care market in Japan - statistics & facts
The Japanese personal care products market is a complex landscape characterized by strict regulations and heated competitions for consumer retention. As personal care products and the synonymous term “toiletries” are not commonly used in everyday language in Japan, the scope of the market is ambiguous without a precise definition. To avoid confusion with the sanitary fixture, toiletries are commonly equated to beauty care or cosmetics for personal hygiene and grooming, further blurring the lines between personal care, beauty products, and over-the-counter pharmaceuticals. Furthermore, shaped by the image of major manufacturers in the overarching chemical consumer goods industry, Japanese toiletries often include household cleaning agents like laundry detergents and air fresheners.
Frequent mergers and acquisitions of emerging brands and the downsizing of broad portfolios to core products form the backbone of brand strategies. To explore new niche segments and supplement the core business with new brands, manufacturers in the cosmetics and toiletries industry are highly active in research and development, with spending exceeding on average a three percent ratio to sales. Unprofitable lineups are quickly discontinued to make way for new, potentially more profitable brands, resulting in rapidly changing product lines.
The fierce race for profit
The fierce competition within the personal care market is apparent in short product lifecycles and price wars. Since consumers prefer drugstores and supermarkets to buy basic skincare and daily necessities, the industry is highly reliant on third-party retailers in distribution. As such, manufacturers are faced with the challenge of responding to the pricing strategies of rival brands and contracted retailers while balancing profit expectations to remain competitive.Frequent mergers and acquisitions of emerging brands and the downsizing of broad portfolios to core products form the backbone of brand strategies. To explore new niche segments and supplement the core business with new brands, manufacturers in the cosmetics and toiletries industry are highly active in research and development, with spending exceeding on average a three percent ratio to sales. Unprofitable lineups are quickly discontinued to make way for new, potentially more profitable brands, resulting in rapidly changing product lines.
