Beauty from within:

wellness mix in skin care

Sunny Um
Senior Analyst, Beauty & Fashion
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ABOUT EUROMONITOR INTERNATIONAL 3

Euromonitor International
network and coverage

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ABOUT EUROMONITOR INTERNATIONAL 4

Research expertise

Consumer Products Ethical Labels Supply

Alcoholic Drinks Nutrition Ingredients

Apparel Packaged Food Packaging

Beauty Survey
Automotive Personal Accessories Economies

Beauty and Personal Care Pet Care Business Dynamics

Consumer Appliances Soft Drinks Cities

Consumer Electronics Tissue and Hygiene Economy, Finance and Trade

Consumer Health Tobacco Industrial

Eyewear Toys and Games Natural Resources

Fresh Food Services Consumers

Health and Wellness Consumer Finance Digital Consumer

Home and Garden Consumer Foodservice Households

Home Care Institutional Channels Income and Expenditure

Hot Drinks Retailing Lifestyles

Luxury Goods Travel Population

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Industry snapshot

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 INDUSTRY SNAPSHOT 6

Asia leads global beauty and personal care sales

Beauty and personal care value sales by region 2017-2022 value increase
160 (constant, US$ fixed 2017) 5

140 4

4
Western
120
Europe
3
100 US $5 billion
3
80
2
US$ Billion

CAGR %
60
2
40
1
20 1

0 0 North
Asia Pacific

Western Europe

Latin America

Australasia
Middle East/Africa

Eastern Europe
North America

America
US $9 billion
Asia Pacific
US $33 billion
2017 2012 2017-2022 CAGR %

Source: Euromonitor International; 2017-2022 value increase is an estimate

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INDUSTRY SNAPSHOT 7

Asians are obsessed with skin care

N. America W. Europe L. America

Skin Care
APAC MEA E. Europe Australasia

Source: Euromonitor International

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Fighting against stressors

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Pollution, stress and digital fatigue cause breakouts

IN THE MEDIA

©
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Euromonitor International
International
FIGHTING AGAINST STRESSORS 10

Beauty Survey: blemish/acne is a major

concern in Asia

Top 5 skin concerns: Millennials, 2017

Whiteheads Blemish/acne-prone✓ Sensitive

Dark spots Blackheads Blackheads
Thailand Blemish/acne-prone✓ Indonesia Acne pits India Dark circles
Dark circles Whiteheads Dark spots
Blackheads Sensitive Blemish/acne-prone✓

Blackheads Blemish/acne-prone✓ Blackheads

Blemish/acne-prone✓ Blackheads Blemish/acne-prone✓
South
China Dark circles Japan Dark circles Sensitive
Korea
Sensitive Dark spots Acne pits
Fine lines Acne pits Dark circles

Source: Euromonitor Beauty Survey 2017

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FIGHTING AGAINST STRESSORS 11

Highly educated consumers; high concern

Skin concerns: 2015 vs 2017, Asia

Blemish/acne-prone

Sensitive

Redness-prone
2017
Eczema-prone 2015

Other

0% 10% 20% 30% 40%

% of Millennials respondents

Source: Euromonitor Beauty Survey 2017

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FIGHTING AGAINST STRESSORS 12

Key demand: “natural” and “free-from”

Desired Product Features: Eco- or Ethically-Friendly Detail

Asia, 2015 vs 2017
40%

35%
% Millennial respondents

30%

25%

20%

15%

10%

5%

0%
All natural ingredients "Free from” claims All organic ingredients Plant/botanically Fragrance free
derived ingredients
2017 2015

Source: Euromonitor Beauty Survey 2017

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FIGHTING AGAINST STRESSORS 13

For consumers, “natural” means “chemical free”

Understanding Green Labels: Definition of “Natural”

Asia, 2017
60%

50%
% Millennial respondents

40%

30%

20%

10%

0%
Chemical free Does not contain Also organic Does not contain GMOs Healthier than non-
artificial additives natural products
2017
Source: Euromonitor Lifestyle Survey 2017
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FIGHTING AGAINST STRESSORS 14

Spotlight on microbiome: “good bacteria”

Jan, 2018

Sources: Unilever Ventures; Gallinee

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Ingestible beauty

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INGESTIBLE BEAUTY 16

Beauty players expand to supplements

AMOREPACIFIC: VITAL BEAUTIE LG H&H: LIFE GARDEN

Meta Green
Green tea extract; body fat Yegamhwan
and cholesterol reduction Green tea extract; body fat
and cholesterol reduction

Hwanghudan
Fermented red ginseng;
Ginseng Extract Ampoule energising
Red ginseng; energising

Liver Prime Gangibo

Milk thistle extract; Milk thistle extract;
liver health liver health
Sources: Vital Beautie; LG Life Garden

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INGESTIBLE BEAUTY 17

Benefits of ingestible beauty for business

2017 dietary supplements sales

30

01 Ageless
25

US$ billion
20

02 Genderless 15

10

03
5
Trust in supplements
0
Asia Pacific North Western
America Europe

Herbal/traditional supplements
Non-herbal/traditional supplements
Source: Euromonitor Consumer Health 2019 edition

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Well-being beauty in retail

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WELL-BEING BEAUTY IN RETAIL 19

The value of in-store experience persists

Beauty and personal care: path to purchase, Asia

50% Purchase channel 50% Research channel

45% 45%
% Millennial respondents

% Millennial respondents
40% 40%
35% 35%
30% 30%
25% 25%
20% 20%
15% 15%
10% 10%
5% 5%
0% 0%
On On computer In store/in On On computer In store/in
smartphone or tablet person smartphone or tablet person
2016 2017 2016 2017

Source: Euromonitor Lifestyle Survey 2017

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 US:
Philosophy
Wellbeing Workshop
Source: Philosophy; WWD
 21

Outlook: what’s next?

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OUTLOOK: WHAT’S NEXT? 22

Ample room for growth in Asia

Per-capita spend on skin care: 2017

(constant, US$ fixed 2017)
80

60
US$

40

20

0
Australasia North America Western Europe Asia Pacific Eastern Europe Latin America Middle East and
Africa

Source: Euromonitor International

© Euromonitor International
Thank you
Sunny Um, senior analyst – Beauty & Fashion

Sunny.Um@Euromonitor.com
Facebook.com/euromonitor
@Euromonitor
Linkedin.com/company/euromonitor-international/