COVID-19 Impact: APAC Beauty and Personal Care Industry Innovate To Survive The Pandemic?

The outbreak of COVID-19 has further heightened consumers’ awareness of sustainability and health.

Growing Consumer Interest in Sustainability and Health 

According to Mintel’s Global COVID-19 Tracker, 87 percent of Indian consumers have indicated that environmental issues have become a higher or lower priority for them – second only to eating healthily. Meanwhile, Mintel Global Consumer research shows that 78 percent of South Korean consumers would like to see more innovative environment-friendly products, and 90 percent of consumers in Japan think it is important to manage their emotional wellbeing.

Therefore, how to share and showcase sustainability initiatives and precisely respond to consumer’s health needs is one of the most important factors for brands to engage consumers now and in the years to come.

Haircare, Clean and Green Beauty Drive Innovation and New Experiences 

Consumers are always ready to embrace new concepts and experience new products, regardless of how the market changes. China’s haircare market has maintained steady growth over the past five years with a compound average growth rate (CAGR) of 4.8 percent, according to Mintel research. 

Haircare products’ import value in the first half of the year increased by 21 percent, compared with the same period the previous year. Interest in haircare is continuously growing among Chinese consumers, with many haircare brands taking inspiration from the skincare industry and innovating around textures and ingredients.

Moreover, Mintel Global Consumer research indicates that 75 percent of consumers in Australia and New Zealand love trying new experiences. As competition for clean and green beauty continues to grow, especially from Western markets, ANZ beauty brands should work harder for their consumers and lean into expertise to stand out in the congested beauty market, rather than just focusing on clean or proving dermatological efficacy or safety.

Angelia Teo, Research Manager, Mintel Beauty & Personal Care, Asia Pacific, said: “The beauty and personal care industry in Asia Pacific has taken a hard hit due to the COVID-19 pandemic. Consumer attitudes and behaviours have shifted as a result and the industry has faced unprecedented challenges, but also opportunities. Innovation is also flourishing in the sector. In our annual Asia Pacific Beauty and Personal Landscape, we’ve focused on the evolution of consumer trends and market opportunities for brands.”