Malaysia skincare market is growing yearly due to the growing young users, increasing disposable income and new facial care trends in the market. According to Mintel research, in 2014 the market size of the cosmetic stood at MYR 1.57 Billion (USD 481 Million) and expected to reach MYR 2.73 Billion (USD 722 Million) by 2020, growing at a CAGR (Compound annual growth rate) of 9.26%.
Malaysia is a country of the ethnic groups of Bumiputera 61.7% (Malays and indigenous peoples, including Orang Asli, Dayak, Anak Negeri), Chinese 20.8%, Indian 6.2%, other 0.9%, non-citizens 10.4% (2017 est.) with the population of 31.38 million (CIA, July 2017). Last year, Malaysian GDP was $926.1 billion (2017 est.) and GDP per capita was $28,900 (2017 est.) according to the central intelligence agency publications.
Skincare is the one of the most significantly used beauty and personal care categories for consumers in Malaysia. Due to increasing disposable income, many Malaysians are willing to spend on skin care, be it mass or premium. Demand for men's skincare also growing significantly with growing demand for men's grooming and appearance.
Beauty and personal care products obtained 95% of market value according to the Mintel report.
- hydrating/moisturising products- 27%,
- skin whiteners and lighteners - 26%,
- anti-ageing- 22%
- cleansers/toners - 20%
- Whitening or lightening products key trend for a lighter skin tone among women
- Anti-aging products will increasingly benefit the cosmetic industry as the country is experiencing a growing and aging population
- Masks are still a niche category due to the growing influence of the Korean and Taiwanese facial care.
Demand for Halal-certified products
- According to Mintel, 61.3.% Malaysian population is Muslim, Halal cosmetics and skincare products are increasingly getting attention from Muslim consumers. Local companies in Malaysia are emphasizing on the Halal cosmetics and El Hajj products are among the first to capitalize on rising demand for Halal products.
- Muslim consumers are looking for the products that are free from alcohol and animal ingredients.
Big multinational beauty companies are the key players and dominating the market. L'oreal, P&G and Unilever are those multinational beauty companies has a more market share in Malaysia. The market is very competitive and the entry barrier is low. Market players are focusing on the niche categories such as Halal cosmetics and Korean cosmetics. Consumers are looking for products that suit. their lifestyle choices.