The cosmetics & toiletries industry in Malaysia is expected to reach 520.4 million units by 2024 at a compounded annual growth rate (CAGR) of 2.8% during 2019-2024, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’ reveals that the Skincare was the largest sector with value sales of RM1.96bn (US$469.8mn) in 2019. However, the make-up sector is forecast to register the fastest value growth at a CAGR of 5.8%, during 2019–2024. It is followed by skincare and oral hygiene with CAGRs of 5.6% and 5.4% respectively.

Anchal Bisht, Consumer Analyst at GlobalData, says: “Industry growth is driven by high per-capita incomes of Malaysians, prodding consumers to spend more on cosmetics & toiletries. While mass market continues to reign, particularly among the middle class who seek affordable products that either promise specific benefits or are multi-functional, opportunities continue to rise for premium products. The market sees significant influence of advertisements, social media influencers and fashion experts on consumer purchases, fueling demand for cosmetics & toiletries in general and products with innovative ingredients more specifically.”

With strong retail presence, hypermarkets & supermarkets continue to dominate the Malaysian cosmetics & toiletries industry. It accounted for the majority share of 39.3% in 2019 followed by chemists/pharmacies and health & beauty stores.

The value share of Malaysia in the global cosmetics & toiletries industry is expected to remain constant at 0.3% by 2024 as in 2019. Similarly, the country’s share at regional level is expected to remain constant at 0.9% by 2024 as in 2019.

Unilever, L`Oreal S.A., and Procter & Gamble are the leading market players in Malaysia, while Vaseline, Shiseido, and SK II are the top brands. Private labels held a value share of 0.04% in the overall Malaysian cosmetics & toiletries sales in 2019.

Ms Anchal concludes: “The demand for personal care products containing natural and organic ingredients is on the rise in the backdrop of growing consumer awareness around the detrimental effects of harsh chemicals. Emergence of products staking claim on exclusion of such ingredients are likely to higher growth, as does halal certification which continues to become a decisive factor in consumer decision making.”