Cosmetics manufacturing to bloom into a P14 billion industry

MANILA, Philippines — Local cosmetics is expected to bloom into a P14-billion industry over the next five years, largely driven by the introduction of more eco-friendly products in the market.

GlobalData, a leading data and analytics company in the UK, said the country’s make-up sector will likely grow at an annual rate of 6.6 percent to reach P13.6 billion by 2025, from P9.9 billion last year.

This will be driven by efficient and eco-friendly product launches over the next few years, it said.

Based on GlobalData’s report, the market will be spurred by the face make-up category, which is forecast to register the fastest annual growth rate at 7.6 percent.

This will be followed by the eye make-up category, which is expected to rise 6.5 percent over the five-year period.

GlobalData consumer analyst Sukanyashri Kabali said increasing disposable income is driving consumer spending in personal care and make-up products.

“During the COVID-19 pandemic, consumers started working from home and became busier trying to manage both personal and professional lives. As a result, demand skyrocketed for efficient make-up products that are quick and effortless,” Kabali said.

The per capita expenditure of make-up in the Philippines increased from $1.7 in 2015 to $1.8 in 2020. However, this is lower than the global average of $3.6 and the regional level of $4.3.

Direct sellers were the leading distribution channel in the make-up market in the Philippines, followed by health and beauty stores, and hypermarkets and supermarkets.

Natura & Co, Ever Bilena Cosmetics Inc. and L’Oréal S.A. were the top three companies in the country by value in 2020, while Avon and Simply Pretty were the leading brands.

“With growing concerns over the harmful effects of chemicals and packaging waste from make-up products, consumers in the Philippines are opting for products which are labeled eco-friendly and sustainable,” Kabali said.