Domestic cosmetics market share in Japan FY 2021, by category

The Japanese cosmetics market is home to major beauty brands that operate in the global landscape, contributing to the success of J-beauty overseas. Skincare is the core segment of the domestic market, accounting for approximately 48 percent of cosmetics shipments in Japan. Haircare followed as the second-largest cosmetics segment, with hair coloring and treatment preparations contributing significantly to the market size.

Skincare in Japan

Commercially available skincare products in Japan are separated into cleaning and moisturizing preparations. Basic moisturizing products, like lotions and serums, are significant contributors to the domestic skincare segment, whereas face washes are at the center of cleaning preparations. Complementing general cosmetics are quasi drugs like doctor’s cosmetics and skin whitening creams, which manufacturers develop in cooperation with physicians or medical professionals. Driven by beauty ideals and rising skin care awareness, medical cosmetics have grown in popularity in recent years.

Cosmetics and personal care in Japan

The beauty market in Japan is heavily intertwined with the personal care market, with innovative products that combine research breakthroughs of both industries blurring the lines. Major cosmetics manufacturers are also active in the personal care markets, offering a diverse brand portfolio catering to different consumer groups. In the cosmetics market, Shiseido Company, Limited is the undisputed leader, carried by high-end and mid-priced brands that enjoy a favorable reputation in Japan and overseas. While the company was also directly involved in the toiletries market until 2021, Kao Corporation was the leading Japanese manufacturer, with a brand portfolio catering to the mass and premium price segments.