The Asian beauty market continues to experience huge expansion with an annual growth rate of not less than 20%, and Singapore's cosmetic sector hub status continues to advance.
Skin care accounts for 40% while make-up takes almost 35%. There is a dearth of official data on what the total beauty market is worth, but, if doctors’ label items, beauty salon and multi-level marketing brands that are sold in the country are all considered, the combined sales for cosmetics and toiletries could easily surpass S$500 million with an average growth rate of 30% annually.
Moreover, Singapore ranks only behind Japan, in terms of per capita spend on cosmetics and toiletries, putting it second in Asia ahead of Hong Kong, South Korea and Taiwan.
Contrary to popular belief, Singapore’s higher business costs, as compared with its ASEAN neighbours such as Thailand, Malaysia and Indonesia, do not put a damper on its growth as a centre of excellence for manufacturing and R&D. Multinationals have made significant investments in Singapore – examples include Johnson & Johnson, Ciba Specialty Chemicals and Croda – introducing state-of-the-art R & D facilities.
Furthermore, P&G and Unilever have established their regional operations. All these high profile companies employ large numbers of highly qualified scientists. It is noteworthy that nine of the world’s top 10 fragrance and flavour multinationals (such as IFF, Symrise, Takasago and Firmenich) are located in Singapore (a combined manufacturing output of over S$400 million in 2002).
Encouraged by non-profit, professional organisations such as the Society of Cosmetic Scientists, Singapore (SCSS) and the Cosmetic, Toiletry and Fragrance Association of Singapore (CTFAS), beauty companies, as well as cosmetic scientists, have pooled resources and know-how to add value and dynamism to the industry. These NGOs have also collaborated closely with local governmental agencies such as the Health Sciences Authority, working for over a decade towards 1 January, 2008, when the ASEAN Cosmetic Directive comes into force. This Directive opens an exciting chapter of harmonised cosmetic regulations that will greatly enhance cross-border trade and ultimately benefit consumers in ASEAN countries. Singapore, no doubt, has played a pivotal role in all these initiatives.
One event that will further establish Singapore on the global cosmetic map is the 8th International Conference of the Asian Societies of Cosmetic Chemists (ASCS) which is scheduled to take place at the Singapore Suntec Convention Centre (7-9 March 2007).
For the first time, Singapore will be playing host to over 200 scientists and experts whose work and research are dedicated to the advancement of cosmetic science and beauty. During the two-and-a-half days, the latest research, discoveries and inventions will be presented and deliberated; potentially paving the way forward for the new age Asian beauty culture – “delivering science into the depths of Asian skin.” Dr Yoshimaru Kumano of Shiseido points to the importance of integrating cosmetic technology from all over the world.
Supported by strong consumer confidence in Singapore brands that stand for integrity, quality and safety, the republic of four million multi-racial people, is well placed to become Asia’s cosmetic sector hub.
