Philippine skincare market seen to bloom to P75 billion by 2026

MANILA, Philippines — The Philippine skincare market is expected to bloom to P74.8 billion by 2026 as more consumers get on the clean beauty trend, according to leading data and analytics firm GlobalData.

GlobalData said in a report that the country’s skincare market is projected to expand at a compound annual growth rate (CAGR) of 7.7 percent to P74.8 billion by 2026 from P51.8 billion last year.

The growth, GlobalData said, would be driven by the clean beauty trend as the consumers have become interested in natural and sustainable cosmetics and personal care products amid the COVID-19 pandemic.

As pandemic-induced restrictions ease and people begin to go out for work and social activities, GlobalData said consumers are now paying more attention to how they look.

Clean beauty products are also trending on social media and becoming popular.

“Consumers are seeking effective and convenient methods to rejuvenate their skin without using multistep skincare regimens, which is why multipurpose products with high quality and more natural ingredients are growing in popularity,” GlobalData consumer analyst Likitha Nalluri, said.

Clean beauty products have a simpler ingredients list, quick and easy to use, and serve a multipurpose such as beauty facemasks, blushers and highlighters.

“The resurgence of household disposable incomes, consumer confidence, and the return to offices will boost demand for skincare products in the Philippines. The ‘clean’ beauty trend will continue gaining momentum, thereby spurring the launch of more natural and sustainable skincare products,” Nalluri said.

In terms of per capita expenditure (PCE) on skincare in the Philippines, GlobalData said this is expected to increase to $6.1 billion by 2026 from $4.6 last year.

Last year’s PCE on skincare in the Philippines is lower than the global average of $9.8, and regional average of $9.2 due to the country’s lower consumer spending power.

By category, GlobalData said make-up remover is expected to post the fastest CAGR of 7.8 percent in the country, followed by skincare with 7.7 percent for from 2021 to 2026.

Last year, Manila emerged as the biggest skincare market in the country, followed by Cebu and Davao.

Unilever, Procter & Gamble, and Natura & Co were the top three companies in the Philippine skincare market by value last year, while Pond’s and Olay were the leading brands.

When it comes to distribution of skincare products, GlobalData said convenience stores served as the top channel in the country last year, followed by hypermarkets and supermarkets, direct sellers, health and beauty stores, chemists and pharmacies, para pharmacies and drugstores.