Asia Pacific Nutricosmetics Market Outlook To 2030

Asia Pacific Nutricosmetics Market Overview

• Asia Pacific nutricosmetics market was valued at USD 4.25 billion. The primary driver is increasing demand for beauty supplements that address skin, hair, and aging concerns, spurred by consumer awareness and the popularity of preventive care. The rise in natural ingredients usage has further accelerated market growth as consumers seek products with fewer chemicals.
• Prominent companies dominating the Asia Pacific nutricosmetics space include Amway, Shiseido, Fancl, and Nestl Skin Health. These players are expanding product lines to cater to growing consumer demand for natural, safe, and effective nutricosmetics. Additionally, emerging startups focused on niche markets, like collagen supplements, are making significant inroads.
• In mid-2024, Shiseido invested USD 300 million in expanding its nutricosmetics R&D capabilities. The company has focused on developing innovative solutions for skin health, including collagen-enhancing supplements. This investment marks one of the largest commitments to nutricosmetics research in the region, with the company expecting a 20% rise in market share by 2025 due to new product launches.
• Japan continues to dominate the Asia Pacific nutricosmetics industry. This dominance is attributed to the countrys aging population and well-established beauty culture. Major cities like Tokyo and Osaka are key growth hubs due to their concentration of affluent consumers and strong demand for premium wellness products.

Asia Pacific Nutricosmetics Market Segmentation

The Asia Pacific Nutricosmetics market is segmented into various factors such as product type, ingredient type and region etc.

By Product Type: The market is segmented by product type into supplements, beverages, and functional foods. Supplements had a dominant market share due to their convenience and high efficacy in delivering concentrated doses of active ingredients. Collagen-based supplements are particularly popular, with brands like Shiseido and Amway leading the segment. The dominance of supplements can be attributed to their longer shelf life and ease of global distribution.

By Ingredient Type: This segment includes natural extracts, vitamins, and collagen. Collagen dominated the market share, owing to its well-known benefits for skin elasticity and anti-aging. Brands like Fancl have introduced marine-based collagen products that are highly popular in the Japanese and South Korean markets.

By Region: The Asia Pacific nutricosmetics market is segmented into China, South Korea, Japan, India, Australia and Rest of APAC. China dominates the Asia Pacific nutricosmetics market due to its large consumer base, growing awareness of beauty supplements, and rapid growth in e-commerce platforms. The increasing demand for natural and organic products, combined with favorable government regulations, has further boosted Chinas dominance in the region.

Asia Pacific Nutricosmetics Market Competitive Landscape

• Amway: In August 2022, Amway announced a second round of strategic investment with South Korea-based Holzapfel Effective Microbes (HEM) to continue the development of personalized probiotic supplements. The partnership originated in 2020 with the goal of supporting wellness through gut-health-related benefits such as immunity, weight management, brain health, and skin health
• Shiseido: Shiseido distributes health and beauty foods throughout Japan, including its core product collagen drinks. These drinks contain no fats, caffeine, or added preservatives. The company also collaborates with specialists to develop low-carbohydrate products and offers sweets and dishes with reduced sugar at some Shiseido Parlour stores.

Asia Pacific Nutricosmetics Industry Analysis

Growth Drivers

• Rising Demand for Anti-Aging Solutions: The number of individuals aged 65 and above in Japan exceeded 35 million, and this demographic is driving demand for products like collagen supplements and beauty supplements aimed at improving skin elasticity. The market for anti-aging solutions alone is projected to contribute over USD 1.2 billion to the overall nutricosmetics market in 2024, according to health sector reports.
• Increased Spending on Preventive Healthcare: Consumers in major economies such as China and Australia have increased their spending on health and wellness, including nutricosmetics, which contribute to skin health and overall beauty maintenance. In China, consumers are estimated to spend over USD 8.5 billion on health-related supplements in 2024, of which beauty supplements are seeing a significant portion.
• Rise in Online Sales Channels: The rise of e-commerce platforms in the Asia Pacific region, particularly in China and India, has allowed for wider distribution and easier access to nutricosmetic products. This shift towards online retail has opened up new growth avenues for nutricosmetics companies by providing direct-to-consumer access and increasing brand awareness.

Challenges

• High Research and Development Costs: Innovation in the nutricosmetics industry comes with a hefty price tag, especially when developing products that contain new ingredients or technologies. In 2024, the average R&D expenditure for major players such as Amway's USD 4 million investment in 4 R&D labs across India to develop safe, effective and high-quality health and wellbeing products.
• Lack of Consumer Awareness in Emerging Markets: While nutricosmetics are gaining traction in developed markets like Japan and South Korea, consumer awareness in emerging markets such as Indonesia and Vietnam remain relatively low. Very small part of the population in Vietnam was aware of nutricosmetics as a category. This lack of awareness is a barrier to market growth, with companies needing to spend millions on education and marketing campaigns.

Government Initiatives

• Japans Regulations on Health Supplements: In 2024, Japan introduced stricter regulations regarding the marketing of health supplements, including nutricosmetics, which are required to undergo clinical testing to verify their efficacy before being sold in the market. This government initiative aims to ensure consumer safety and product transparency, leading to improved consumer trust but also increasing the time and cost required to bring new products to market.
• Australias Natural Health Industry Promotion: Australian complementary medicines industry, which includes recommendations for targeted funding to enhance the manufacturing and export of locally grown ingredients. This initiative aims to capitalize on Australia's reputation for high-quality, "clean and green" products, which could indirectly support the nutricosmetics sector by promoting the use of native ingredients.

Asia Pacific Nutricosmetics Market Future Outlook

The Asia pacific nutricosmetics market is projected to grow exponentially. Increasing consumer demand for multifunctional beauty supplements and the rapid digitalization of sales channels are expected to propel market growth further. The expanding middle class in emerging economies like Indonesia and Vietnam will also play a crucial role in the markets future.

Future Trends

• Focus on Natural and Organic Ingredients: Consumers will increasingly seek products with natural and organic ingredients, driving companies to innovate in this space. By 2028, products containing plant-based ingredients such as aloe vera and green tea extracts are projected to dominate. This shift will be supported by government regulations promoting cleaner and more sustainable beauty products.
• Expansion of Digital Sales Channels: The increasing penetration of e-commerce platforms and social commerce in countries like China and India will propel the growth of online sales for nutricosmetics. Online sales channels are expected to generate massive revenue for the nutricosmetics market in the Asia Pacific region. The rise of influencer marketing and direct-to-consumer sales models will further accelerate this trend.