Malaysia is well equipped to cater to the increased demand for personal care and beauty products
The increased awareness of personal care and beauty in recent years has generated high demand for innovative cosmetic and personal care products. This surge, in recent years, can be attributed to a growing number of discerning consumers - both women and metrosexual men. No longer are brand names the sole impetus of the boom; consumers are opting for naturally derived ingredients, organic halal-certified products and cruelty-free as their daily go-to products. This has resulted in robust growth in Malaysia’s development of personal care products.
Strong Export Performance
Malaysia’s strength in the development of personal care products is supported by the robust growth in demand. Euromonitor International reported that sales of beauty and personal care in Malaysia is expected to reach USD3.6 billion by 2025 at a CAGR of 7.4% during 2020-2025. Thus far, Malaysia’s exports have exceeded USD300 million, mainly to the USA, Japan, Australia, Hong Kong, Taiwan, Singapore, the Philippines, Thailand and Indonesia. Among the products exported are beauty and make-up preparation, toiletries and room deodorisers, oral or dental hygiene products, shampoo and hair preparation as well as perfumes and colognes.
Following the potential growth, global chain retailers and hypermarkets are aggressively expanding their private label offerings to include shampoos, depilatories, facial care and styling agents. Furthermore, Malaysian contract manufacturers are now offering extensive services under private label arrangements for both international brands and hotel use.
Technology as Catalyst for Growth
Backed by science and propelled by innovation, the personal care and beauty industry’s growth shows no signs of abating. Nanotechnology is widely applied throughout the industry to maximise the efficacy of products. Manufacturers use nanoscale size ingredients that enable deeper skin penetration, longer-lasting effects, increased colour and vibrancy, improved finish quality and better UV protection overall.
Due to its biodiversity and abundance of natural resources, Malaysian manufacturers have gained the trust of their clients and consumers by utilising natural extracts
Malaysia’s Winning Formula
Focusing on product origin and quality of the products are winning imperatives for Malaysia’s growing number of producers and manufacturers of colour cosmetics. Due to its biodiversity and abundance of natural resources, Malaysian manufacturers have gained the trust of their clients and consumers by utilising natural extracts such as those derived from pineapple, mangosteen and torch ginger. This ensures that the products are free from harmful chemicals, artificial colouring, perfumes and preservatives.
Consumers are becoming more discerning and prefer halal, organic and natural products
Spearheading the Global Halal Economy
As reported in the 8th edition of the State of the Global Islamic Economy Report 2020/2021, Muslims spent $2.02 trillion in 2019 across the food, pharmaceutical, cosmetics, fashion, travel and media/recreation sectors. This spending reflects a 3.2% year-on-year growth from 2018. Under the Halal indicator score, Malaysia was ranked first in the pharmaceutical and cosmetics segment. This holds the advantage in the emergence of halal pharmaceutical and cosmetics demand as well as offerings.
Halal cosmetics are garnering more attention in the exhibition space, becoming a fixed feature at renowned exhibitions such as Malaysia International Halal Showcase (MIHAS). Pharmaceuticals and cosmetics are one of the featured sectors in the 17th edition of MIHAS organised virtually from 9th September until 31st December 2021 with the aim of promoting Halal certified products to the world’s market, and strengthened by Malaysia's position as the leading Islamic economy.
To showcase Malaysia’s capability in the personal care and cosmetic segment, MATRADE also organised Malaysian companies’ participation in related renowned trade exhibitions such as Cosmoprof Asia in Hong Kong and World of Private Label International Trade Show (PLMA) in the Netherlands.
Malaysia offers wide arrays of options to fulfil the needs of the world market for beauty and personal care products including OEM services with global certifications as well as niche advantages in Halal and natural products.
