Cosmetics & Personal Care Sector (Japan)_ DATA & NEWS_ Supply and prices_ Exports of both cosmetics and sanitary products return to growth. Fri Dec 27 2024

Summary of the Conference Call Transcript Industry Overview - The report covers the cosmetics and sanitary products industry in Japan, focusing on nine companies within this sector [1][33]. Key Points and Arguments - As of December 27, the total market capitalization of the nine companies decreased by 0.4% from the end of November, underperforming the TOPIX by 4.9 percentage points [1]. - Uncertainty regarding the 2025 business environment is identified as a significant factor hindering sector companies [1]. - Notable growth in exports was observed in November, particularly for cosmetics and sanitary products. Hygiene product exports to China showed a strong year-over-year increase for the second consecutive month [1][33]. - The focus moving forward will be on sustainability within the industry [1]. - Despite the growth in exports, there is a cautious investment stance towards the cosmetics sector due to concerns about intensifying domestic market competition [1]. Export and Import Trends - Cosmetics Exports: - November saw a 4% year-over-year increase in cosmetics export value, with skincare exports rising by 8% and makeup exports declining by 19% [33]. - Exports to China decreased by 4%, while exports to South Korea surged by 75% [33]. - Japan's cosmetics imports increased by 21% year-over-year in November [33]. - Sanitary Products Exports: - November exports of sanitary products grew by 15% year-over-year, with exports to China rising by 79% [33]. - Domestic production of disposable diapers showed mixed results, with adult incontinence products increasing by 4% and infant diapers decreasing by 9% [33]. Price Trends - The average export unit price for sanitary products rose by 22% month-over-month to ¥13.3/kg in November [33]. - The corporate goods price index (CGPI) for cosmetics fell by 0.8% month-over-month [33]. - Raw material prices for disposable diaper materials showed slight increases, with polypropylene spunbond nonwoven fabric rising by 0.7% month-over-month [33]. Additional Insights - The report highlights the importance of monitoring sustainability trends in the cosmetics and sanitary products sector as a potential driver for future growth [1]. - The competitive landscape in the domestic market is a critical concern, suggesting that companies may need to innovate or differentiate to maintain market share [1]. This summary encapsulates the essential insights from the conference call, focusing on the current state and future outlook of the cosmetics and sanitary products industry in Japan.