Just over 20 years ago, the Chinese beauty market was smaller than its Australian counterpart.
Other major Asian countries, including Indonesia, Singapore, Hong Kong and Vietnam, have also grown rapidly over the past decade as living standards and wages continue to rise.
The Malaysian skincare market was worth US$469.8 million (AUD$672.5 million) in 2019 and is expected to increase by a CAGR of 5.6 per cent to US$603.5 million (AUD$865.7 million) over the next four years, says GlobalData.
Australian beauty exports are heavily skewed towards skincare. Facial care is the largest and fastest-growing category in volume sales in Malaysia, accounting for revenues of US$398.2 million (AUD$571.2 million) in 2019.
Supermarkets are the major sellers of skincare in Malaysia (37.7%), followed by health and beauty stores (22.3%) and pharmacies (12.3%).
L’Oréal, Procter & Gamble and Shiseido are the top three companies in the Malaysian skincare sector, powered by the L’Oréal Paris, SK-II and Shiseido brands.
A high per capita GDP, one of the highest in the region, is allowing Malaysians to spend more on personal care products, says Anchal Bisht, consumer analyst for GlobalData.
“The middle classes are seeking affordable, multi-functional skincare products while considerable prospects also emerge for premium products from consumers with higher disposable income,” he added.