High consumer demand for plant-based beauty products in Asia-Pacific, research indicates

02 May 2023 --- Several factors, from a rise in domestic income and an ingrained fear of climate change, have sparked high sustainability purchasing power in the Asia-Pacific region for plant-based beauty and personal care products. This market trend provides significant opportunities for brands in the personal care space.

According to Euromonitor International, companies planning to develop products with vegan, vegetarian and plant-based claims in 2022 were at roughly 45% for household essentials and 75% for beauty and personal care.

The institution advises brand owners to focus on consumer education, transparency and a clear value proposition to enhance consumer perceptions. It will also explain the efficacy of plant-based products, particularly for beauty and home care products.

“This gives producers of fast-moving consumer goods an opportunity to leverage their plant-based portfolios under the banner of sustainability,” the institute states.

About 75% of the survey participants listed customer perceptions/brand reputation as the main reason companies invest in sustainability initiatives followed by market strategy, brand image and method and complying with legislation.

Fetching higher retail pricesOne of the main reasons companies invest in sustainability initiatives is customer perceptions/brand reputation.
In the region’s beauty and personal care market, products with plant-based claims retailed at prices 37% higher than the market average in 2021, according to Euromonitor’s Sustainability Opportunity Tracker.

Herbal products have a long history of use in Asia, such as in Traditional Chinese Medicine and Ayurveda, and consumers still place high importance on plant-based products and ingredient transparency, mainly for health reasons. Natural beauty products are well-positioned to address consumers’ environmental concerns, almost by default.

Plant-derived and natural ingredients became desirable again in 2022 among survey respondents, with Asian consumers showing the highest preference for these features in skin care products. This shift could be associated with younger generations of consumers in Asia-Pacific rediscovering the therapeutic virtues of ancient medicine.

Asian consumers are increasingly worried about climate change, standing at over 60% of respondents in 2022. More consumers tried to positively impact the environment through their everyday actions and felt they could make a difference to the world in 2022 than in 2019.

“The survey findings also highlight that not only are companies in beauty and personal care leading plans to develop products with the relevant claims but also significant interest coming from household essentials,” the institution states.

Per capita disposable income in Asia-Pacific has risen by 24% since 2017 in US$ current prices, enabling more consumers to purchase sustainable products, which often retail at higher prices.

Among brands taking advantage of this trend, LVMH Perfumes & Cosmetics Houses recently secured an amount of plant-based polyethylene furanoate material from Avantium’s Flagship Plant for the packaging of its cosmetics.

Green investments acceleratingAsian consumers appreciation of plant-based personal care products is at an all-time high as their focus turns consistently turns to sustainability.
In-home care, both price and concerns over the efficacy of non-chemical variants hinder consumer acceptance, demonstrating how important it is for businesses to balance efficacy and sustainable formulations.

According to Euromonitor International’s Voice of the Industry: Lifestyles Survey 2022, 50% of Filipino and Indonesian consumers see performance claims as the key attribute when buying cleaning products.

The most important reason companies invest in sustainability claims is customer perception/brand reputation, followed by marketing strategy, aligning with a brand image or ethos, and complying with legislation.

In 2020, for example, beauty and personal care offered the highest number of online SKUs with plant-based claims at 1.6 times higher than in food and beverages.

The top sought-after ethical features in skin care from 2019 to 2022 were plant-botanically derived ingredients, ingredient transparency and all-natural ingredients.

Brands looking to drive broader adoption of plant-based offerings in Asia-Pacific must focus on communicating the value proposition of these options, Euromonitor advises.

But meeting consumer expectations about product performance comes alongside reformulating for greener claims. A recent study evaluating the shelf life of cosmetics found that plant-based emulsions are difficult to preserve due to oxidative spoilage under different storage conditions.

By Inga de Jong

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