OVERVIEW OF THE COSMETICS MARKET IN TAIWAN 2018 - Israel Economic & Trade Mission in Taipei Trade Officer Sandy Lee
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OVERVIEW OF THE
COSMETICS MARKET IN
TAIWAN
2018
Israel Economic & Trade Mission in Taipei
Trade Officer Sandy Lee
DEFINITION OF
COSMETICS IN TAIWAN
APPLY TO EXTERNAL HUMAN BODY
USED FOR:
-MOISTENING THE HAIR OR SKIN
-STIMULATING THE SENSE OF SMELL
-COVERING BODY ODOR
-IMPROVING FACIAL APPEARANCE
COSMETIC
CLASSIFICATION
IN TAIWAN General cosmetics
NOT containing medicine or potent
medicinal ingredients on the
positive list do NOT require a pre‐
market approval
Medicated cosmetics
Containing medicine or potent
medicinal ingredients on the
positive list require a pre‐market
approval by the TFDA (sunscreens,
hair dyes, perms, and
antiperspirant deodorant and teeth
‐whitening products)
CURRENT MARKET SITUATION
In 2016, Taiwan is accounted for 0.7% of the
2%
global cosmetics market, accounting for
approximately 4 Billion USD.
4%
4% Skin care takes up the highest percentage rate,
accounting for about 52.4%; the second is color
6%
cosmetics with a market share of 17.4%; the third
highest is hair care products with a market share
6%
of about 8.7%.
Hair care Skin care
9% 52%
Color cosmetics
17%
The rest include Oral hygienic products, perfume, baby
products, skin care for men, and sunscreen
Source: ITIS
CURRENT
MARKET
Others
SITUATION 24%
Japan
26%
In 2016, Taiwan's cosmetics imports
amounted to US $ 1.5 billion. The top five
countries were: Japan, France, the United
States, South Korea, and China. In
particular, cosmetic imports from South China
Korea have risen in recent years. 8%
From all top five countries, the majority of
imports are skin care products. For the United States
second highest category, from Japan and South Korea 16%
South Korea is color cosmetics, from China 9%
and the US is hair care, and from France is France
perfume. 17%
Source: DCB
CURRENT MARKET SITUATION
The overall industry was dominated by the top three players in 2016, all of
which are international players. Taiwan Shiseido Co Ltd, Procter & Gamble
Taiwan Ltd and L'Oréal Taiwan Co Ltd, captured a combined 30% value share of
sales in 2016. The market has become fragmented, smaller brands are coming
into play.
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NBO Company Shares of Beauty and Personal Care: % Value2016
Source: Euromonitor
CURRENT MARKET SITUATION
Distribution Channel
Also includes Salons usually offer
Ecommerce can offer
hypermarkets and more unique products,
monopolized by global more affordable, price
grocery stores some require their own
high-end name brands, competitive and
mass market cosmetic branding. The price
taking up prime retail brands that are not
brands, specialty skin point of salon products
space on the first floor offered in the local
care products or brands can sometimes be as
market
developed by doctors high as name brand
CURRENT MARKET SITUATION
Distribution Channel
50
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Distribution of Beauty and Personal Care by Format: % Value 2016
Source: Euromonitor
CURRENT MARKET SITUATION Popular Products Antiaging Face mask Whitening Cushion compact
REGULATIONS
Pre-market approval & registration for cosmetics
Require pre-market testing and approval:
containing medical, poisonous or potent drug
Require pre-market documentation submission:
not containing medical, poisonous or potent drugREGULATIONS
Advertising examination for cosmetics- not pre-examined, but will be
heavily fined if found violated
Packaging label should include factory name,
address, name, composition, usage, weight or
capacity, batch number or date of
manufacture, expiration date or shelf life
Should specify the name and address of the
manufacturer and importer, and shall not
exaggerate or claim the curative effectTRENDS
Trend 1- The rapid growth of skin
TO care for men
CONSIDER
Including men's toiletries,
fragrances and shaving products.
Toiletries taking up most of the
consumption.
Trend 2- O2O, E-commerce and
digital marketing on the rise
O2O (online to offline): 86 shop, S3
E-commerce: Yahoo, MOMO, UDN
Internet celebrity economy:
Bloggers, VloggersTRENDS
Trend 3- Integrating big data into
TO cosmetics utilization
CONSIDER
Customization-NuSkin age LOC
Me
Wearable electronics-
AmorePacific Way
Trend 4- Environmentally friendly
cosmetics
Organic ingredients
Recyclable packaging
Reduce carbon footprint
manufacturingTHINGS TO CONSIDER
Brand recognition
Competitiveness, product uniqueness
Market size
Barriers to entry
Marketing allocationSUMMARY Due to the popularization of digital marketing, the overall market share of international big brands are declining year by year, providing opportunity for small brands to enter the market, intensifying the competition. The need for male beauty products are on the rise, opportunity to develop new product segments. E-commerce is dominating the market.
LET'S KEEP Ms. Sandy Lee Ms. Nitzan Paicov
Trade Officer Manager, Cosmetics & Toiletries
IN TOUCH Tel: +886 2 2757 9692 #508
E-mail: sandy.lee@israeltrade.gov.il
Tel: +972 3 514 2993
E-mail: nitzanp@export.gov.il
Website: www.itrade.gov.il/taiwan/ Website: www.export.gov.il
Facebook: @IEMinTaipei
Source: ITISYou can also read
