JapanCosmetics
OVERVIEW OF THE JAPANESE MARKET
1According to Yano Research Institute , the Japanese cosmetic market in FY2015 was 2'401.0 billion
2yen , up 3 % over the previous fiscal year, based on the shipment value at brand manufacturers. The
average of annual expenditures for cosmetics per two or more person households was 34'726 yen in32015 .
Sales of cosmetics in Japan are projected to remain stable despite the decreasing population due tothe high unit price of added-value products, in addition to the growing demand for anti-aging skin careproducts to serve an increasingly large elderly population. Furthermore, demand for skin careproducts as well as makeup for male consumers has increased in recent years, and while thewomen’s cosmetic market is highly saturated, it is estimated that only 20% of the male consumer base4is being served. The growth in the number offoreign tourists has also been a remarkable
driving force in the market for luxury goods,
especially Japanese cosmetics, boosted by“explosive purchasing” by Chinese visitors whocome to Japan with the express purpose ofshopping.
Sales of skin care products in 2016 were morethan twice that of makeup products, which isevidence of the overwhelming focus ofJapanese women on using added-value
products as a tool not to simply cover up skindeficiencies but rather to improve the skin. The
skincare cosmetics take almost half of the wholecosmetics market, while make-up cosmetics account for 20.6 % and perfumes only for 0.2%. L lotions,5cleansing creams and sunscreens are the categories whose shipment values are increasing. The
Ministry of Economy, Trade and Industry publishes the recent production and sales statistics ofcosmetic products per item (P.133ff.).
The import of cosmetics has decreased in recent years, with France, the United States, and Thailand(haircare) still on top, but with decreasing tendencies. The import from China and South Korea are, on
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the other hand, growing. The fact that the imports from Germany remains rather stable can be seen1

https://www.yanoresearch.com/

2

1 CHF = 115 JPY as of Dec.4, 2017
Japan Cosmetic Industry Association (JCIA), https://www.jcia.org/n/en/st/
4Japanese Cosmetics Market, EU-Japan Centre for Industrial Cooperation, http://www.eu-japan.eu/sites/eujapan.eu/files/JapaneseCosmetics_final.pdf
5JCIA. https://www.jcia.org/n/en/st/01-2/
6JCIA., https://www.jcia.org/n/en/st/04-2/
3

Switzerland Global Enterprise
Stampfenbachstrasse 85 - CH-8006 Zürich
T +41 44 365 51 51 - www.s-ge.com

as a positive sign for Swiss natural skincare products as the German organic cosmetics are becoming
popular in Japan (ref. Annemarie Börlind, Dr. Hauschka, Tautropfen, Lavera). The Japanese
consumers who value natural ingredients for cosmetics will find such Swiss products also attractive.

CONSUMER TRENDS AND DEMOGRAPHICS

Consideration of the import of cosmetics into Japan should include an understanding of the target
demographic and up-to-date customer needs.
TrendsTrends include a move toward stronger fragrances among generations younger than baby boomers;
increased emphasis on preventing body odor through products such as deodorant; a preference foreco-friendly, natural/organic cosmetics; and products with multiple functions (e.g., a foundation withanti-aging and whitening properties, all-in-one gels, etc.). Japanese beauty standards favor light skin,and longer, hotter summers are driving demand for sunscreen products, including those at higher
degrees of SPF/PA than previously available on the market.
A notable trend is the increasing popularity of facial oils. The brand Melvita, part of the French
L'OCCITANE Group, is now represented by Melvita Japon which is opening more and more shop-inshops in major shopping centers. Also the Japanese brand MUJI launched oils of jojoba, argan,rosehip, etc. for face and body. The series of Kneip Biooils rank also high on the popular cosmetic
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word-of mouth-ranking and e-commerce site @cosme.
Demographics
Elder women: Japan’s population is aging. This represents an opportunity for the growing number of
elder female consumers who are willing and able to spend more for quality products. This segment isrepresented by a group of women in their 40s and 50s who spent their early 20s when Japan's strong
economic growth ended abruptly with burst of the economic bubble. They were the first generation
who enjoyed the power of the European and US American luxury brands. These certain middle-aged
female consumers position themselves as pioneer career women or wives of wealthy men and (areeager to) look young for their age. They work not only with the natural changes occurring in aging skin,aiming to maintain the skin’s health but also ready to try more drastic solutions to reverse the effectsof aging. They would go for any such innovative skincare products.
Young women: Younger women are more interested in cheaper products to meet their lower
incomes, but the phenomenon of young people who live with their parents means that young women
have more disposable income compared to their counterparts in other countries. Eye makeup inparticular enjoys significant popularity, with great attention given to shadows, eyeliners, mascaras,and false eyelashes designed to provide the illusion of larger, wider eyes. Recent fashion trends havedrawn attention to the use of blush, leading manufacturers to produce a variety of cream, liquid, andpowder blushes.
Men: According to the Japanese Cosmetic Market published by the EU-Japan Centre for Industrial
Cooperation, Japan is one of the most dynamic and earliest markets in the world for men’s8cosmetics . The Japanese skincare product makers first started with a problem-solving approach andhave been selling odor-caring products for elder men well since years. They are now creating needs
developing anti-aging skincare products for men of 50 years old and over who have a strong purchasing
power.

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http://www.cosme.net/item/item_id/1067/ranking

8

https://www.eu-japan.eu/sites/eu-japan.eu/files/JapaneseCosmetics_final.pdf

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Tourists: The number of tourists to Japan has seen a rapid increase since 2011, and the Japanese
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government aims to increase the yearly number of tourists to 40 million by 2020 . So-called explosive
shopping by Asian tourists, particularly from China, has been a great boon to the Japanese economy,
with Chinese tourists buying up foreign cosmetic products in large quantities due to safety concerns
about Chinese products. High-end cosmetics are one category of note for tourist purchases, and both
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Kao Corp. and Shiseido Co. projected sales boosts of ¥15 billion in 2015 due to tourist shopping.
IMPORT PROCESS AND REQUIREMENTS

Legal
Definition

TestingForms

LabelsLicenses

Distribution
Channel• Determine if the product is legally defined as a cosmetic product or a quasi-drug(see explanation below).
• If the product does not contain items listed in the Cosmetics Standards(Ministerial Notification in September 2000), primary distribution approval foreach product item is not required.

• The importer is responsible for making sure the product is in full compliance withJapanese laws, as outlined by the Ministry of Health, Labour and Welfare.
• An assessment on product samples must be performed by “testing andinspection facilities” designated by the MHLW, owned or contracted by theimporter.

• Following assessment, the importer must submit three forms: a Manufacture andSales of Cosmetics Notification, a Cosmetics Import Notification for Manufactureand Sales, and the manufacturer’s or importer’s brand name.

• Labels, packaging, and inserts must contain information in clear Japanese,
including the name and address of the primary distributor, the brand name andmanufacturing number or code, and the list of ingredients and expiration date.

• The importer must obtain a cosmetics manufacturing and sales license. Thecompany must have a product safety and quality management system to obtainthis license.
• Importers that engage in the final packaging, labeling in the Japanese language,or storage of the imported product are required to obtain a cosmetic
manufacturer's license.

• Determine/partner with a distribution channel where the product will be sold.
Distribution channels include department stores for top domestic and foreign
brands, and supermarkets, convenience stores, and drug stores for the lower-end
market.

Based on information compiled from JETRO and the EU-Japan Centre for Industrial Cooperation
9"The future of Japan’s tourism:Path for sustainable growth towards 2020", McKinsey Japan and Travel,Transport and Logistics Practice October 2016
10The Japan Times. http://www.japantimes.co.jp/news/2015/08/20/business/tourists-fuel-sales-boon-high-endcosmetics/
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LEGAL DEFINITIONS OF COSMETICS AND QUASI-DRUGSCosmetics are regulated by the Ministry of Health, Labour and Welfare(http://www.mhlw.go.jp/english) under the Pharmaceutical Affairs Law. Cosmetics in Japan have adifferent legal definition than other countries, and there is a distinction between cosmetics and “quasidrugs.” Due to the extra tests, inspections, etc. required for importation, quasi-drugs are generally
more expensive to import than cosmetics.
Cosmetics: "Articles with mild action on the human body, which are intended to be applied to thehuman body through rubbing, sprinkling or other methods, aiming to clean, beautify and increase theattractiveness, alter the appearance or to keep the skin or hair in good condition." Cosmetics arefurther defined under the following six categories: perfume and eau de cologne, makeup cosmetics,
skin care cosmetics, hair care products, special-purpose cosmetics, and cosmetic soaps.
Quasi-drugs: Quasi-drugs are a unique product classification in Japan, and are consideredborderline medicinal products. Quasi-drugs are defined as products that have minimal to moderate
pharmacologic activity and the distinction is made based on the amount of certain ingredients, theapplication method, and dosage. Products in this category include skin whitening products, acneproducts, and anti-aging products.

Approval and Licensing System for Drugs, Quasi-drugs, and Cosmetics:
http://www.mhlw.go.jp/english/wp/wp-hw2/part2/p3_0034.pdf
Standards for Cosmetics including the lists of prohibited and restricted ingredients:
http://www.mhlw.go.jp/file/06-Seisakujouhou-11120000-Iyakushokuhinkyoku/0000032704.pdf

LEADING COSMETICS COMPANIESJapanese Companies
The Japanese cosmetic industry is led by the Shiseido Group, which held 38.5% of the national
market as of 2014. In addition to its own skin care and makeup brand of the same name, the groupalso contains a variety of prestige and drugstore cosmetics brands, including bareMinerals, NARS,
and skin-whitening giant HAKU. The group is followed in national sales by the Kao Corporation, ownerof Bioré, Kanebo, Jergens, and Curél, and POLA ORBIS HOLDINGS Inc., which encompasses a11range of national and international cosmetic brands.
Non-Japanese Companies
Foreign cosmetic brands are most popular in the mid- to luxury price range, although international
drugstore brands such as MAYBELLINE NEW YORK and Revlon are widely available. Chanel retains
top regard amongst the prestige department store brands, alongside the L’Oréal Group (Lancôme,Yves Saint Laurent, Helena Rubinstein), Estée Lauder Companies (Clinique, Bobbi Brown, M.A.C.),
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LVMH Group (Givenchy, Guerlain), and Clarins.
Swiss Products in Japan
Cellcosmet Switzerland
goloy33JUSTLa Colline
La Prairie
Lydia DaïnowMavala

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Beauty and Healthcare News. http://bhn.jp/news/19832
QUICK Co.,Ltd. http://cosme.ten-navi.com/百貨店化粧品/01/

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Margy's Monte CarloNahrin
Paul Scerri
Swiss Bellefontaine
Swiss Perfection
Valmont
Vitacrème
WeledaPOTENTIAL FOR SWISS COSMETICS

Japanese women are generally fashion- and beauty-conscious and actively seek information on
cosmetic products in stores, on the internet, and in fashion magazines. They are very open to foreign
products. Although the average Japanese customer does not relate Switzerland with cosmetics,
Switzerland has generally a good reputation for quality and safety, associated with its nature. Inaddition to the high standards set by other European brands that have entered the Japanese market,
there is potential for the sale of Swiss cosmetics in the Japanese market if the Swiss product has aclear concept, unique value proposition and marketing communications resources.
STRATEGIES FOR GROWTH

Due to the declining population, strategies include increasing unit price and sales per customer
instead of focusing on volume sales. The proportion of elderly women will increase, so anti-aging
components and a focus on quality are key. Sales formats particularly well-suited for serving elderly
consumers, such as e-commerce and television shopping, are also expanding, and should be taken
13advantage of. In addition, brands that stress safety and organic ingredients are particularly likely to
succeed under current trends. Japanese consumers tend to research products well before purchasing,meaning that the more information that can be provided about a product’s benefits, ingredients, and14
consumer reception, the better. To this end, a strong internet and SNS presence is vital.
CASE STUDY OF A SUCCESSFUL SWISS COMPANY

Swiss skin care brand Weleda has carved out a strong position for itself in the Japanese market,
riding the recent surge in the popularity of natural and organic beauty products. Focusing onsustainably harvested and non-synthetic ingredients, the brand’s oils and moisturizers have gained aplace of prominence at up-and-coming natural cosmetics chain CosmeKitchen and general beautyand home goods giants Loft and Tokyu Hands. Weleda also has several of its own Japanesestorefronts, in addition to operating retail spaces in department stores across Japan. Asia now
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accounts for more than 35% of the international market for natural and organic cosmetics, andWeleda’s eco-friendly image appeals to young Japanese shoppers concerned with the quality andsafety of their cosmetics. ELLE Japan named Weleda’s White Birch Body Oil the top body careproduct of 2015, while health and beauty magazine VOCE ranked the brand’s Evening Primrose Oil in16
second place. Weleda also offers a men’s product line featuring shaving lotion and moisturizer.
REGULATORS, BUSINESS SUPPORT CONTACTS, AND TRADE SHOWSRegulators
Pharmaceutical and Food
Safety Bureau, Ministry ofHealth, Labour and Welfare
Representation Division,Consumer Affairs Agency

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TEL: +81-3-5253-1111

http://www.mhlw.go.jp

TEL: +81-3-3507-8800

http://www.caa.go.jp

Erwan Rannou., EU-Japan Centre for Industrial Cooperation, http://www.eu-japan.eu/sites/eujapan.eu/files/JapaneseCosmetics_final.pdf
14Japan Inc Communications, Inc. http://www.japaninc.com/article.php?articleID=1390
15
CosmeticsDesign-Asia. http://www.cosmeticsdesign-asia.com/Market-Trends/What-s-next-from-Japan
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WELEDA JAPAN Co.,Ltd. http://www.weleda.jp/index.php
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Consumer Economic Policy
Division, Commerce andInformation Policy Bureau,
Ministry of Economy, Tradeand Industry

TEL: +81-3-3501-1511

Japanese Business Support Contacts
Cosmetic Importers
TEL: +81-3-3560-3041
Association of Japan
Japan Cosmetic Industry
TEL: +81-3-5472-2530
Association
Japan Cosmetic Suppliers
TEL: +81-3-3662-2562
AssociationNational Federation of
TEL: +81-3-3861-7733
Cosmetic Retail Cooperative
Japan Cosmetic Wholesalers
TEL: +81-3-3866-6753
AssociationWest-Japan Cosmetic Industry TEL: +81-6-6941-2093
AssociationJapan Organic Cosmetics
TEL: +81-50-5534-2582
Organization
Japan Organic Cosmetics
TEL: +81-80-3311-9107
Association

http://www.meti.go.jp

http://www.ciaj.gr.jp/
http://www.jcia.org/
http://jcsa.ne.jp/
http://www.cosme.or.jp/index.ht
ml
http://park8.wakwak.com/~zen
orosiren/
http://www.wj-cosme.jp/
http://www.j-organiccosme.org/
http://joca.jp/

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Cosmetics Trade Shows
Cosme Tokyo

Annually
January

Cosmetec(International cosmetics
development exhibition)

Annually
January

Health & Beauty EXPO

Annually

CITE Japan
Cosmetic Ingredients &Technology Exhibition JapanInterphex Japan

BienniallyMay

Beauty World Japan

Three times a year
February in Fukuoka, May inTokyo and October in Osaka
Annually
AugustOrganic EXPO

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Annually
June - July

Exhibition of international
cosmetic products as source
for importers, retailers, salonsetc.
Exhibition concerning thedevelopment and planning ofcosmetics
Concurrently held with Cosme
Tokyo
Concurrently held with Cosme
Tokyo and Cosmetec withinthe "Health and Beauty Week
Tokyo"
Exhibition by engineers of
cosmetics and raw materials
manufacturers
Exhibition of equipment,systems, and technologies for
manufacturing and R&D ofdrugs and cosmetics
Exhibition of all products,services, information andtechnologies
Exhibition of natural andorganic products

Japan External Trade Organization.
https://www.jetro.go.jp/ext_images/en/reports/market/pdf/guidebook_cosmetics.pdf
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Diet & Beauty Fair

Annually
September

Exhibition of beauty business
Concurrently held with Anti
Aging Japan, Spa andWellness Japan

NEXT STEPSSwitzerland Global Enterprise and Swiss Business Hub Japan offer customized solutions to Swiss
exporters doing business in Japan. As this infosheet provides only very basic information as of thedata of compilation and to the best of our knowledge using primary, secondary and tertiary sources,
Swiss exporters should consult with the S-GE Consultant for Japan for further and up-to-date
information and services tailored to their needs. We will support you through every step of theexporting process, please contact:

Jacqueline Tschumi
Consultant Japan + South Korea
JTschumi@s-ge.com
Direct +41 44 365 54 83
Switzerland Global Enterprise
Stampfenbachstrasse 85 – CH-8006 Zürich
T +41 44 365 51 51 – www.s-ge.com

Date:
Author:Author’s address:

Tokyo, 01.12.2017
Swiss Business Hub Japan
Embassy of Switzerland in Japan
5-9-12, Minami Azabu, Minato-ku, Tokyo 106-8589
tok.sbhjapan@eda.admin.chwww.swissbiz.jp

Disclaimer
While this infosheet is intended to provide an overview of this specific market and its opportunities at
the time of its edition, each individual company or organization may have to conduct its own analysis
to get a better understanding of the opportunities and possibilities available to them. You areencouraged to explore and develop your chances and assess your risks based on in-depth research
and analysis.
Readers should note that S-GE and Swiss Business Hub Japan do not guarantee the accuracy of anyof the information contained in this infosheet, nor does it necessarily endorse the organizations,associations, companies, websites and individuals listed herein. Readers of this infosheet shouldverify the accuracy of the information contained herein before making a business decision.

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