Editor’s Note
In this interview, METI’s Manabu Suzuki discusses the newly launched Cosmetics Industry Competitiveness Enhancement Study Group and the strategic push to boost Japan’s cosmetics exports to 2 trillion yen by 2033.
The Ministry of Economy, Trade and Industry (METI) launched the “Cosmetics Industry Competitiveness Enhancement Study Group” in December 2025. As the global cosmetics market expands, Japan’s cosmetics exports are currently struggling. To overcome this situation and achieve the goal of “2 trillion yen in overseas cosmetics expansion by 2033,” this initiative aims to strengthen the competitiveness of Japan’s cosmetics industry through collaboration between the public and private sectors, as well as related businesses and organizations. We spoke with METI’s Manabu Suzuki about the current state of the industry, the outlook for “J-Beauty,” and the efforts of the study group.
The domestic cosmetics market in Japan is approximately 4 trillion yen and is growing slightly, but due to population decline, a market contraction is expected in the future. For medium- to long-term industrial development, overseas expansion will be necessary. The global cosmetics market is estimated at around 70 trillion yen and is said to be growing at an annual rate of 4-6%. However, Japan’s cosmetics export value has been on a significant decline in recent years. From approximately 800 billion yen in 2021, exports fell to about 500 billion yen in 2024. By country, Japan ranks 13th in the world in terms of export value (as of 2024).
This study group was established to address this situation, with the aim of identifying challenges to expanding overseas sales of Japanese brands and supporting concrete actions.
In South Korea, for example, specialized cosmetics service providers such as OEM/ODM manufacturers have developed. The growth of these companies has led to the accumulation of know-how and the concentration of capital. As a result, companies have achieved greater scale and efficiency, enabling them to respond quickly and flexibly to changes in the market environment, such as trends and regulations. This has become a strength supporting the global expansion of Korean companies.
In the global cosmetics market, digital marketing originating from social media has become mainstream. Trends change rapidly, and sales formats utilizing KOLs and live streamers are diversifying. Approaches that offer new customer experiences are in demand.
For overseas expansion, it is increasingly important to strengthen the global responsiveness of the cosmetics industry, accurately grasp various regulations such as amendments to cosmetics laws and traceability requirements in each country, and respond quickly to changes in the overseas market environment.
However, regulations differ from country to country, making it difficult for individual companies to handle them alone. Therefore, we view the aggregation and provision of information on overseas regulations as a “cross-industry domain” and have set the development of a platform for aggregating overseas regulatory information as one of the themes of the “NEDO Prize-Based Program.” Public recruitment began in May 2026.
The safety and efficacy of Japanese cosmetics, along with pharmaceuticals, are regulated under the Pharmaceutical and Medical Device Act (PMD Act). Since other countries generally have separate cosmetics regulations, the regulatory frameworks differ significantly.
Advertising regulations are very strict compared to competitor countries. This has created a gap in the freedom of advertising expression and the range of marketing methods, posing a hurdle for domestic companies’ overseas expansion. There is also an impact on the domestic market. Online Japanese-language advertisements on cross-border e-commerce sites by overseas companies do not comply with the regulations stipulated in the PMD Act, and they use expressions with greater appeal than Japanese companies. To strengthen the international competitiveness of the cosmetics industry, the industry is advancing discussions with regulatory authorities to review the system and its operation.
While leveraging the strength of maintaining the quality and functionality of in-house manufacturing that Japanese cosmetics companies possess, it is necessary to connect highly competitive companies with specialized expertise and improve the speed of development and production in response to trends through hybrid production that collaborates with external ODM partners.
We should aim for an environment where companies compete with their own unique ideas and initiatives, while cooperating in areas of collaboration (fields that should be addressed jointly by the entire industry), such as sharing information on each country’s laws and regulations, reviewing domestic advertising expression regulations, and branding J-Beauty for overseas expansion.
It is also important to expand the provision of J-Beauty customer experiences through a combination of digital marketing approaches and opportunities for local product trials, such as at exhibitions.
We aim to link J-Beauty with the overseas expansion of Japanese content. By promoting IP collaborations with cosmetics and leveraging the power of content that creates global fans, we want to drive J-Beauty forward.
