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Current Issues Developments Fragrance and and in the Cosmetics Industry

Contact Author Dr. T. Mitsui, Shiseido
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This paper discusses recent changes in the fragrance and cosmetics market of Japan. Here, fragrance means alcoholic fragrance, such as perfumes and eaux de cologne. This paper also suggests today’s requirements for fragrance and cosmetics and it considers the impact that Europe’s political changes will have on the fragrance and cosmetics industry worldwide.

Recent Changes in the Japanese Market

Japan's fragrance and cosmetics industry developed very rapidly following the reconstruction period of the postwar era. Figure 1 shows the trend of annual cosmetics shipments by fiscal year.

Until the mid-1970s, the value of shipments increased each year by double digits compared with the previous year. However, after demand reached saturation point, the annual growth rate dropped and is now less than 5%. Incidentally, the abnormally high growth rate of 18.7% in 1985 is due to the change in the method of computing production. This change occurred when statistical jurisdiction over this market was transferred from the Japan Cosmetics Industry Association to the Ministry of International Trade and Industry.

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