Fakes a threat to Asian cosmetics ingredients growth

Countries in Asia Pacific need to stem the rise of fake cosmetics and ingredients by tightening regulations, according to Frost & Sullivan.

Rising demand for cosmetics in Asia Pacific is driving growth in the active ingredients market, which F&S expects to top $176m by 2017. Fakes are a threat to growth though, with unscrupulous suppliers undercutting legitimate firms by dodging taxes and duties.

"Countries need to design strict regulations and enforce adherence to eliminate the threat from counterfeit and smuggled personal care products," F&S wrote in materials to accompany its analysis of the Asia Pacific personal care active ingredients market.

The alternative put forward by F&S is for companies to take greater control of their supply chains by setting up active ingredient manufacturing plants in Asia Pacific. This cuts the risk of buying fake ingredients but is a big commitment.

An alternative is to ally with an Asian supplier. "Strategic relationships between manufacturers will help synergise their strengths and overcome individual weaknesses,"  said Nandhini Rajagopal, senior research analyst at F&S.