Trends and opportunities
The market
The Philippines is one of Asia's fastest growing markets for cosmetics and wellness products as Filipinos are known to be very conscious of their physical appearance and total wellbeing.
Moreover, purchasing beauty products has become a way of life. This may also be attributed to health campaigns by both the government and private organisations, the growth of gyms, health clubs, salons and spas, and the promotion of food supplements. Male shoppers are also increasing in number.
Total imports of cosmetics and personal care products amounted to $80 million. Imports
take up only about 10 per cent of the market, but this has been increasing due to
liberalisation in trade barriers.
Price remains to be a major factor in most Filipinos’ purchasing decisions. However, the
young adult market segment is very adventurous, so it is much easier to introduce new
products and encourage brand switching in that market as long as the products meet their
needs and are within their spending budget.
As more women join the workforce (1.4 million), the demand for convenient products is also increasing. More women prefer these types of products (ie. 2-in-1 shampoo and conditioner) because of their busy lifestyles.
Whitening products are now part of the basic commodities in a woman’s beauty product
shopping list. For outdoors, lipsticks and facial powders are essentials for average Filipino
women.
Salons and spas are expanding in the Philippines, evidence of Filipinos’ desire for total
wellbeing. Do-it-yourself at-home products, mainly hair care, are also becoming popular due to limited budgets. Filipinos are starting to appreciate organic or all natural products but these require heavy introductory marketing such as educational seminars and free samples.
Opportunities
Australia is well known as producers of high quality organic and all natural personal care
products because of its 'clean and green' image.
Demand for raw materials such as essential oils, clays and muds for the spa industry is also increasing with the proliferation of spas throughout the country.
Do-it-yourself products, mainly for hair care, are also becoming popular due to limited
budgets. Filipinos are starting to appreciate organic or all natural products but these require heavy introductory marketing.
Competitive environment
About 75 per cent of cosmetics in the market are produced locally. A leading local
manufacturer is Avon Cosmetics, which has regional production facilities in the Philippines.
Avon Philippines (99 per cent US-owned) is the biggest domestic manufacturer of cosmetics, with estimated sales of nearly A$30 million per year. There are around 80 local cosmetics manufacturers, with eight to 10 of these considered large national companies.
Major multinationals present in the market are L’Oreal, Proctor & Gamble, Unilever,
Colgate-Palmolive and Johnson & Johnson. The shampoo market is also dominated by
these multinationals. Make-up, hair care and baby products are also mostly supplied by US
companies.
Thailand and the USA are the leading sources of imported cosmetics and toiletries products in the Philippines. Some of the more visible imported brands in the market include:
- USA – Elizabeth Arden, Clinique, Estee Lauder, Jergens, Revlon, Max Factor
- Europe – Clarins, L’Oreal, Guerlain, Christian Dior, Chanel, Lancôme, Paul & Joe
- Japan – Shiseido, Kanebo, Shu Uemura
The majority of imported cosmetics come from Thailand with A$69 million worth and Australia with A$3.8 million, but this is continuously increasing.
Australian exports of cosmetic products amount to A$3.8 million, though this is continuously increasing. The following Australian brands of cosmetics and personal care products are available in the Philippines:
| A’kin |
Mini Organics |
Sunday Australia |
| Bloom |
Model Co |
Tali by Tali Shine |
| Bod |
Mor |
TNS |
| Cussons |
Pure Heaven |
Tonic Australia |
| Doward |
Nutrimetics |
Trelivings |
| Glamourflage |
Redwin |
Urban Rituelle |
| LaVendi |
Sanctum |
Vitaman |
| LM Naturals |
Shizen |
Wicked Sista |
| Marine Blue Australia |
Skin Doctors |
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