Asia Personal Care & Cosmetics Market Guide 2016

Personal Care & Cosmetics Products
Country Guide: Singapore
Executive Summary
The Singapore market value for beauty and personal care recorded positive current value growth in
2015, though this was noticeably slower than in 2014. According to industry sources and available
published market research, this can be attributed to a more challenging economic environment and
growing competition from travel retail. The forecast for the cosmetics market in Singapore is also
expected to grow at a CAGR (compound annual growth rate) averaging 5% from 2016 to 2020. The U.S.,
France and the rest of EU 28, Japan and China continue to be the top five leading suppliers of cosmetics,
toiletries and fragrances to Singapore. The U.S. continues to enjoy a good reputation and is recognized
by the consumer as one of the leaders in the industry. Its share of the overall market has stayed
constant over the last few years.
The beauty business is fairly resilient to economic cycles and continues to thrive in Singapore. Industry
sources say that approximately five new brands enter the market each year, but this does not
necessarily translate to a significant growth in the consumer base. To stay relevant, top brands invest
heavily in advertising, promotions and marketing as well as research & development. The product life
cycles tend to be short and new brands and differentiated products are regularly being introduced to
the market to satisfy the needs and wants of the discerning consumer.
The domestic retail market is sophisticated with various market segments, including both consumers
with high disposable incomes seeking premium and high-quality products, as well as price-sensitive,
mass-market buyers. Besides serving as home to an affluent, local resident population, Singapore also
plays host to a significant number of expatriates who not only enjoy and demand a high-quality lifestyle,
but also possess great knowledge of international products. In addition, tourists visiting from the region
contribute greatly to total retail sales.
U.S. companies seeking to expand into Southeast Asia should consider using Singapore as a showcase
market and a launching pad for their products and services. According to industry sources, more than
85% of all imports of cosmetics, toiletries and fragrances are re-exported, and as such, the country
serves as an ideal gateway to the region.
Overview of the Domestic Market
Size and Growth Trends in the Domestic Industry
There are more than 70 business listings of companies that both import and manufacture cosmetics and
toiletries in Singapore, ranging from mass-market products to premium, luxury brands. As Singapore is a
high-cost manufacturing site, most firms have products manufactured in lower-cost countries in the
region. This allows them to take advantage of the island state’s strategic location in Southeast Asia and
its close proximity to lower-cost production countries.