Cosmetics manufacturing is a global industry. What the experts consider confined to foreign countries in Asia is now opening up in Malaysia, driving local brands and manufacturers among Malaysia’s young population. However, with consumption patterns changing and the rise of technology, can cosmetology continue to survive here?

What are the Malaysian beauty trends?

Malaysia’s cosmetics market might face a decline after it was revealed that, with the recent rise in social media influencer marketing, many Malaysian brands saw their sales increase up to ten times higher than in previous years. The country is now becoming known for its cosmetics endorsements. It is also known for the scandals instead of being noted for its skincare products.

Malaysia’s beauty industry has grown significantly over the last few years, and many multinational cosmetic companies continue to invest in the country. More and more individuals are now undergoing cosmetic surgery like facial rejuvenation, abdominoplasty, and rhinoplasty. The industry will continue to grow by 7% annually until 2020.

With the rise of Fenty’s beauty, it’s not that surprising to see people stepping out of their ways to look like Fenty babes. People spend hours painting and slapping on layers to create the desired look. The latest Malaysian trends seem to be darker and more dramatic-so when’s the last time you saw someone wearing brown eyeshadow?

Malaysia has a booming cosmetic manufacturing industry. The rapid growth in demand for beauty products within the Malaysian market has led to an increase in employment opportunities and provides a vital economic boost to society. To support this growth, the Malaysian government is offering tax incentives and investing millions of dollars in the research and development of cosmetics and related industries.

What is the future of cosmetic manufacturing in Malaysia?

Even though Malaysia is known for its artistic and decorative trade, its economy is experiencing an uncertain future. Due to inexperienced and unskilled workers, the country has problems exporting its products and earning high-quality money. This has inspired cosmetic manufacturer Selangor in Malaysia to re-invent themselves by finding new ways to improve their products, leading to better quality and more profit.

Malaysia has a growing population, so the future of cosmetic manufacturing in this country looks promising. Malaysia is one of the top five countries globally for beauty consumption and cosmetics exports. There are a lot of components overseas that account for these sales, and it is estimated that there will be more than 20% progress by 2020, which will ripple across the market. This means that investors will be able to capitalize on this trend.

In recent years, the breakeven point of individual cosmetic manufacturing has been reduced by over 50%. The fundamental point is that today’s production costs have dropped to a fraction of what they used to be, and technology has enabled consumers to access a wide range of quality products at low prices. This has resulted in competition among companies constantly discovering new ways to increase sales while simultaneously using automation technologies.

Cosmetics manufacturing in Malaysia is estimated to grow by 4% this year. That number may seem small, but it’s significant and welcome, considering the 645 million people in the country will require more than 2 billion beauty products by 2020. Just as importantly, that growth comes at no expense to Malaysia’s economy; the country is projected to be able to supply inexpensive goods to meet this demand.

The cosmetic manufacturing industry in Malaysia

Malaysia is home to many factories, but the factories are starting to move overseas. In 2005, Dermal was a local cosmetic manufacturing company that became the focus of Malaysian startup companies and international venture capital investors. Some of the key factors contributing to the development of the cosmetic manufacturing industry in Malaysia include its strategic geographical location, proximity to raw material supply, and talent pool. These are some reasons why cosmetic manufacturers have chosen to settle or locate their manufacturing facilities in Malaysia. Currently, Malaysia ranks third among Asian countries for cosmetic manufacturing.

Taiwan came into play in 1960. Taiwanese companies flourished, making them the world’s number one OEM cosmetic manufacturer Malaysia. It was more because experts led American consumers to believe that they didn’t have a problem with buying from Taiwan because of the numerous excellent quality products that Taiwan offered, which caused the decline in imports from the country, leaving the country with a surplus of products.

Current cosmetic manufacturing companies are only located in New South Wales, which is mostly due to its environment and the specific requirements for these companies. However, industry demands have increased to the point where there are many discussions about other locations that can meet such a demand. The countries Malaysia mentioned include Indonesia, Vietnam, and Thailand.

In 2011, the Malaysian cosmetic industry started becoming more active, and it has shown tremendous growth in recent years. Healthy investments have been made into the cosmetic manufacturing industry from the staggering number of products being sold worldwide. There is always a need for innovations to improve products with better chemicals. With the emergence of globalization, Malaysia is finally starting to be more aware of labeling and ISO. Malaysia requires strict regulations for any brand wanting to register itself, allowing for a safe and controlled manufacturing environment.

Cosmetics and skincare comparisons

OEM skincare Korea has become another booming industry in Malaysia, with companies constantly coming up with new formulas that promise to make your skin healthier and more radiant. The country’s growing number of beauty bloggers has caused skincare to become a lucrative niche in the Malaysian market, with consumers becoming more conscious about their skin and its needs.

With a strong domestic cosmetic sector and various manufacturing plants, Malaysia has an impressive and growing market. With the increased demand for products in the coming years, cosmetic manufacturing is only expected to grow further.

Malaysia’s cosmetic manufacturing industry is forecast to have a huge future. The domestic market for cosmetics is expected to grow by 8.1% in the next five years, not including digital and traditional non-manufacturing products. The Malaysian government supports this growth through various taxes on services and other initiatives, such as the tax incentives for cosmetics manufacturing manufacturers that have reached 5 million ringgit (USD 1.48 million) in sales in Malaysia for three consecutive years.

Malaysia currently has approximately 2,000 cosmetic factories but is expected to increase to around 18,000 in 2020. The cosmetic manufacturing industry exported goods worth 17 million USD in 2016. Malaysia’s latest feat in the beauty industry is its success in skincare. These types of products accounted for half of the total exports in 2016.

The importance of collaboration between startups and manufacturers

Malaysia is now a global center for beauty. With thousands of events worldwide and annual exports of over RM2 billion, Malaysia has seen an exponential rise in cosmetic manufacturing and the presence of world-class players within this industry. But manufacturers still face many challenges, like a lack of necessary collaboration between suppliers and brands and an important innovation in science and research areas that could yield better and more efficient processes in the future. However, the positive aspect is that Malaysians have showcased professionalism by becoming leaders in the industry.

The increasing trend for people to seek out the latest and next trend in fashion is something cosmetic companies in Malaysia are familiar with. Cosmetics is an industry that has made Malaysia the second most valuable country behind Japan when it comes to cosmetics manufacturing. With a workforce of 127,000 employees in 2004, Malaysia’s prestige due to its products keeps on increasing day by day.

Manufacturers in the cosmetic industry have struggled to balance quality and price. The overall advancement of the industry and collaborative efforts from startup entities can alter their ability to continue producing cosmetics without limitation on quality. This has eluded various governments throughout recent years and led to bans on cosmetic imports and product exits. A panel discussion was hosted at many expert places, with guest speakers discussing recent developments within local and global cosmetic industries.

The cosmetic manufacturing industry in Malaysia is a fast-growing industry, with manufacturers participating worldwide. The growth is largely fueled by foreign investment because consumers are willing to pay high prices for luscious-looking skin that only the country can provide. However, Malaysia needs to improve its skills and expand the range of products offered here to meet rising demand and diversify locally, increasing its global appeal.

Final Thoughts

In December 2017, Malaysia released new bills that would allow more cosmetic manufacturing in Malaysia. Currently, the majority of cosmetics in Malaysia are imported into the country. The bill is poised to create 1,000 new jobs per year to manufacture cosmetics in Malaysia. This will help expand the economy and provide opportunities for underprivileged residents. In Malaysia, it’s not just a cosmetic crisis but the whole of manufacturing. Because of this risk to our country’s main industries and export income, the government has taken action and passed legislation to give attractive incentives to move companies such as cosmetics away from China. The country is proactive in creating opportunities for its people by also changing how farmers grow crops and produce oil. These efforts are risky, but with a wide range of possible outcomes, Malaysia is aiming for “economic prosperity” rather than specific individual industries that could go bust.