Cleansing Oil Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application, Product Type
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Introduction to the Cleansing Oil Industry
Cleansing oil, a cornerstone of modern skincare, is a makeup-removing product that leverages the “oil dissolves oil” principle, using plant oils or triglycerides to effectively remove cosmetics and impurities. Recognized as the first step in skincare, its market has grown steadily since 2018, driven by rising consumer awareness and makeup consumption, as noted in CBNData’s 2021 Cleansing Trends White Paper. The industry is moderately fragmented, with global leaders like L’Oreal and Shiseido innovating in formulations for lip, eye, and face cleansing. Cleansing oil stands out for its superior cleansing power compared to alternatives like micellar water, with trends toward natural ingredients, eco-friendly packaging, and premium textures. The market is propelled by beauty consciousness, e-commerce growth, and skincare refinement, with challenges including high competition, ingredient costs, and sustainability pressures. Growth is fueled by premiumization, male grooming trends, and emerging market adoption.
Market Size and Growth Forecast
The global cleansing oil market is projected to reach USD 3.5–4.5 billion by 2025, with an estimated compound annual growth rate (CAGR) of 5% to 7% through 2030. Growth is driven by increasing skincare awareness, e-commerce accessibility, and demand for premium and natural formulations, tempered by competitive pressures and sustainability challenges.
Regional Analysis
North America exhibits a growth rate of 4%–6%. The U.S., with L’Oreal and Estée Lauder, leads due to high beauty spending. Trends include premium and eco-friendly cleansing oils.
Asia Pacific shows a growth rate of 6%–8%. Japan, driven by Shiseido and DHC, dominates, while China’s skincare boom boosts demand. Trends focus on natural ingredients and e-commerce.
Europe records a growth rate of 4%–6%. France, supported by Chanel, emphasizes luxury cleansing oils. Trends include sustainable packaging and minimalist formulations.
Middle East and Africa display a growth rate of 3%–5%. The UAE’s beauty market fuels demand, with trends toward premium, halal-certified products.
South America has a growth rate of 3%–5%. Brazil’s growing middle class supports demand, with trends focusing on affordable, plant-based oils.
Application Analysis
Lip & Eye Cleansing Oil: Holds a growth rate of 5%–7%. Shiseido’s oils target delicate areas, with trends toward gentle, non-irritating formulations.
Face Cleansing Oil: Accounts for a growth rate of 6%–8%. L’Oreal’s oils offer deep cleansing, with trends focusing on premium and natural ingredients.
Type Analysis
Traditional Cleansing Oil: Holds a growth rate of 5%–7%. DHC’s oils dominate retail, with trends toward plant-based and eco-friendly formulations.
Disposable Cleansing Oil: Accounts for a growth rate of 6%–8%. KOSE’s single-use oils cater to travel, with trends focusing on convenience and premium textures.
Key Market Players
L’Oreal: A French leader, L’Oreal produces premium face cleansing oils, focusing on natural ingredients and eco-friendly packaging for global beauty markets.
Estée Lauder: A U.S. firm, Estée Lauder develops luxury lip and eye cleansing oils, emphasizing gentle formulations for high-end consumers.
Shiseido: A Japanese innovator, Shiseido excels in face and eye cleansing oils, prioritizing advanced textures and plant-based ingredients for Asian markets.
DHC: A Japanese company, DHC specializes in traditional cleansing oils, offering deep-cleansing solutions with natural oils for retail and e-commerce.
KOSE: A Japanese firm, KOSE produces disposable cleansing oils, targeting convenience-driven consumers with premium, travel-friendly formulations.
Avon: A U.S. company, Avon develops affordable cleansing oils, serving emerging markets with accessible skincare solutions.
Mandom: A Japanese firm, Mandom focuses on cleansing oils for male grooming, emphasizing lightweight and non-greasy formulations.
Kao: A Japanese company, Kao produces face cleansing oils, prioritizing eco-friendly and gentle ingredients for sensitive skin.
Chanel: A French leader, Chanel develops luxury cleansing oils, offering premium textures and elegant packaging for high-end beauty markets.
Unilever: A UK-Dutch firm, Unilever supplies affordable face cleansing oils, targeting mass markets with sustainable formulations.
P&G: A U.S. company, P&G produces cleansing oils for retail, focusing on accessibility and natural ingredient innovations.
Porter’s Five Forces Analysis
●Threat of New Entrants: Low. The cleansing oil industry is characterized by high brand loyalty, significant marketing investments, and stringent product safety regulations, deterring new entrants. Established players like L’Oreal benefit from economies of scale and strong consumer trust, making market entry challenging for newcomers.
●Threat of Substitutes: High. Alternative cleansing products, such as micellar water or cleansing balms, compete directly, but Shiseido’s cleansing oils offer superior makeup removal efficacy, limiting substitution among consumers prioritizing deep cleansing performance.
●Bargaining Power of Buyers: High. Large retailers like Sephora and e-commerce platforms like Amazon have significant leverage to negotiate pricing and product variety, pressuring firms like Estée Lauder to maintain competitive pricing and innovative formulations.
●Bargaining Power of Suppliers: Moderate. Suppliers of plant oils and packaging materials influence costs, but diversified sourcing by DHC mitigates dependency, though price volatility in natural ingredients remains a concern.
●Competitive Rivalry: High. L’Oreal, Shiseido, and Chanel compete intensely on formulation innovation, sustainability, and regional presence, but differentiation through natural ingredients and premium packaging reduces direct price competition, fostering a focus on consumer-driven trends.
Market Opportunities and Challenges
Opportunities
●Skincare Awareness Growth: Increasing consumer emphasis on skincare as the first step in beauty routines significantly boosts L’Oreal’s demand for cleansing oils, essential for effective makeup removal and skin health maintenance.
●E-commerce Expansion: The rapid growth of online beauty platforms drives Shiseido’s sales of cleansing oils, offering consumers convenient access through subscription models and direct-to-consumer channels.
●Premiumization Trends: Rising demand for luxury and high-performance cleansing oils favors Chanel’s innovation, appealing to affluent consumers seeking spa-like skincare experiences at home.
●Emerging Markets: Rapid beauty market growth in China and Southeast Asia supports DHC’s adoption of affordable, plant-based cleansing oils, addressing diverse consumer preferences in developing economies.
●Male Grooming Trends: The increasing popularity of skincare among men boosts Mandom’s sales of lightweight cleansing oils, tailored for male consumers seeking simple and effective solutions.
●Sustainable Packaging: The shift toward eco-friendly and recyclable packaging enhances Unilever’s market appeal, aligning with consumer preferences for sustainable beauty products.
●Natural Ingredient Demand: Growing consumer preference for plant-based and non-toxic formulations drives KOSE’s innovation in natural cleansing oils, supporting health-conscious skincare trends.
Challenges
●High Competition: The highly competitive landscape, with numerous global and regional beauty brands, pressures L’Oreal’s market share, requiring continuous innovation to maintain consumer loyalty.
●Ingredient Cost Volatility: Fluctuations in the prices of plant oils and natural ingredients create cost pressures for Shiseido, impacting profitability and pricing strategies in competitive markets.
●Sustainability Pressures: Stringent environmental regulations on packaging and ingredient sourcing increase production costs for Estée Lauder, necessitating investments in sustainable supply chains.
●Supply Chain Disruptions: Global logistics issues, such as shipping delays and raw material shortages, affect DHC’s ability to deliver cleansing oils on time, disrupting retail supply chains.
●Market Saturation: Mature beauty markets in North America and Europe, with established consumer preferences, slow Chanel’s growth, limiting opportunities for significant market expansion.
●Consumer Preference Shifts: Rapidly evolving consumer demands for new textures and multifunctional products strain KOSE’s resources, requiring agile product development to stay relevant.
●Regulatory Compliance: Strict safety and labeling regulations for cosmetics increase Unilever’s compliance costs, necessitating rigorous quality control and formulation adjustments.
Chapter 1 Executive Summary
Chapter 2 Abbreviation and Acronyms
Chapter 3 Preface
3.1 Research Scope
3.2 Research Sources
3.2.1 Data Sources
3.2.2 Assumptions
3.3 Research Method
Chapter 4 Market Landscape
4.1 Market Overview
4.2 Classification/Types
4.3 Application/End Users
Chapter 5 Market Trend Analysis
5.1 Introduction
5.2 Drivers
5.3 Restraints
5.4 Opportunities
5.5 Threats
Chapter 6 Industry Chain Analysis
6.1 Upstream/Suppliers Analysis
6.2 Cleansing Oil Analysis
6.2.1 Technology Analysis
6.2.2 Cost Analysis
6.2.3 Market Channel Analysis
6.3 Downstream Buyers/End Users
Chapter 7 Latest Market Dynamics
7.1 Latest News
7.2 Merger and Acquisition
7.3 Planned/Future Project
7.4 Policy Dynamics
Chapter 8 Trading Analysis
8.1 Export of Cleansing Oil by Region
8.2 Import of Cleansing Oil by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Cleansing Oil Market in North America (2020-2030)
9.1 Cleansing Oil Market Size
9.2 Cleansing Oil Demand by End Use
9.3 Competition by Players/Suppliers
9.4 Type Segmentation and Price
9.5 Key Countries Analysis
9.5.1 United States
9.5.2 Canada
9.5.3 Mexico
Chapter 10 Historical and Forecast Cleansing Oil Market in South America (2020-2030)
10.1 Cleansing Oil Market Size
10.2 Cleansing Oil Demand by End Use
10.3 Competition by Players/Suppliers
10.4 Type Segmentation and Price
10.5 Key Countries Analysis
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Chile
10.5.4 Peru
Chapter 11 Historical and Forecast Cleansing Oil Market in Asia & Pacific (2020-2030)
11.1 Cleansing Oil Market Size
11.2 Cleansing Oil Demand by End Use
11.3 Competition by Players/Suppliers
11.4 Type Segmentation and Price
11.5 Key Countries Analysis
11.5.1 China
11.5.2 India
11.5.3 Japan
11.5.4 South Korea
11.5.5 Southest Asia
11.5.6 Australia
Chapter 12 Historical and Forecast Cleansing Oil Market in Europe (2020-2030)
12.1 Cleansing Oil Market Size
12.2 Cleansing Oil Demand by End Use
12.3 Competition by Players/Suppliers
12.4 Type Segmentation and Price
12.5 Key Countries Analysis
12.5.1 Germany
12.5.2 France
12.5.3 United Kingdom
12.5.4 Italy
12.5.5 Spain
12.5.6 Belgium
12.5.7 Netherlands
12.5.8 Austria
12.5.9 Poland
12.5.10 Russia
Chapter 13 Historical and Forecast Cleansing Oil Market in MEA (2020-2030)
13.1 Cleansing Oil Market Size
13.2 Cleansing Oil Demand by End Use
13.3 Competition by Players/Suppliers
13.4 Type Segmentation and Price
13.5 Key Countries Analysis
13.5.1 Egypt
13.5.2 Israel
13.5.3 South Africa
13.5.4 Gulf Cooperation Council Countries
13.5.5 Turkey
Chapter 14 Summary For Global Cleansing Oil Market (2020-2025)
14.1 Cleansing Oil Market Size
14.2 Cleansing Oil Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Cleansing Oil Market Forecast (2025-2030)
15.1 Cleansing Oil Market Size Forecast
15.2 Cleansing Oil Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 L'Oreal
15.1.1 Company Profile
15.1.2 Main Business and Cleansing Oil Information
15.1.3 SWOT Analysis of L'Oreal
15.1.4 L'Oreal Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Estée Lauder
15.2.1 Company Profile
15.2.2 Main Business and Cleansing Oil Information
15.2.3 SWOT Analysis of Estée Lauder
15.2.4 Estée Lauder Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Shiseido
15.3.1 Company Profile
15.3.2 Main Business and Cleansing Oil Information
15.3.3 SWOT Analysis of Shiseido
15.3.4 Shiseido Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 DHC
15.4.1 Company Profile
15.4.2 Main Business and Cleansing Oil Information
15.4.3 SWOT Analysis of DHC
15.4.4 DHC Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 KOSE
15.5.1 Company Profile
15.5.2 Main Business and Cleansing Oil Information
15.5.3 SWOT Analysis of KOSE
15.5.4 KOSE Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Avon
15.6.1 Company Profile
15.6.2 Main Business and Cleansing Oil Information
15.6.3 SWOT Analysis of Avon
15.6.4 Avon Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.7 Mandom
15.7.1 Company Profile
15.7.2 Main Business and Cleansing Oil Information
15.7.3 SWOT Analysis of Mandom
15.7.4 Mandom Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
15.8 Kao
15.8.1 Company Profile
15.8.2 Main Business and Cleansing Oil Information
15.8.3 SWOT Analysis of Kao
15.8.4 Kao Cleansing Oil Sales, Revenue, Price and Gross Margin (2020-2025)
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Table Research Scope Of Cleansing Oil Report
Table Data Sources Of Cleansing Oil Report
Table Major Assumptions Of Cleansing Oil Report
Table Cleansing Oil Classification
Table Cleansing Oil Applications List
Table Drivers Of Cleansing Oil Market
Table Restraints Of Cleansing Oil Market
Table Opportunities Of Cleansing Oil Market
Table Threats Of Cleansing Oil Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Cleansing Oil
Table Cost Structure Analysis Of Cleansing Oil
Table Key End Users List
Table Latest News Of Cleansing Oil Market
Table Merger And Acquisition List
Table Planned/Future Project Of Cleansing Oil Market
Table Policy Of Cleansing Oil Market
Table 2020-2030 Regional Export Of Cleansing Oil
Table 2020-2030 Regional Import Of Cleansing Oil
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Cleansing Oil Market Size And Market Volume List
Table 2020-2030 North America Cleansing Oil Demand List By Application
Table 2020-2025 North America Cleansing Oil Key Players Sales List
Table 2020-2025 North America Cleansing Oil Key Players Market Share List
Table 2020-2030 North America Cleansing Oil Demand List By Type
Table 2020-2025 North America Cleansing Oil Price List By Type
Table 2020-2030 United States Cleansing Oil Market Size And Market Volume List
Table 2020-2030 United States Cleansing Oil Import & Export List
Table 2020-2030 Canada Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Canada Cleansing Oil Import & Export List
Table 2020-2030 Mexico Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Mexico Cleansing Oil Import & Export List
Table 2020-2030 South America Cleansing Oil Market Size And Market Volume List
Table 2020-2030 South America Cleansing Oil Demand List By Application
Table 2020-2025 South America Cleansing Oil Key Players Sales List
Table 2020-2025 South America Cleansing Oil Key Players Market Share List
Table 2020-2030 South America Cleansing Oil Demand List By Type
Table 2020-2025 South America Cleansing Oil Price List By Type
Table 2020-2030 Brazil Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Brazil Cleansing Oil Import & Export List
Table 2020-2030 Argentina Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Argentina Cleansing Oil Import & Export List
Table 2020-2030 Chile Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Chile Cleansing Oil Import & Export List
Table 2020-2030 Peru Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Peru Cleansing Oil Import & Export List
Table 2020-2030 Asia & Pacific Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Cleansing Oil Demand List By Application
Table 2020-2025 Asia & Pacific Cleansing Oil Key Players Sales List
Table 2020-2025 Asia & Pacific Cleansing Oil Key Players Market Share List
Table 2020-2030 Asia & Pacific Cleansing Oil Demand List By Type
Table 2020-2025 Asia & Pacific Cleansing Oil Price List By Type
Table 2020-2030 China Cleansing Oil Market Size And Market Volume List
Table 2020-2030 China Cleansing Oil Import & Export List
Table 2020-2030 India Cleansing Oil Market Size And Market Volume List
Table 2020-2030 India Cleansing Oil Import & Export List
Table 2020-2030 Japan Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Japan Cleansing Oil Import & Export List
Table 2020-2030 South Korea Cleansing Oil Market Size And Market Volume List
Table 2020-2030 South Korea Cleansing Oil Import & Export List
Table 2020-2030 Southeast Asia Cleansing Oil Market Size List
Table 2020-2030 Southeast Asia Cleansing Oil Market Volume List
Table 2020-2030 Southeast Asia Cleansing Oil Import List
Table 2020-2030 Southeast Asia Cleansing Oil Export List
Table 2020-2030 Australia Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Australia Cleansing Oil Import & Export List
Table 2020-2030 Europe Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Europe Cleansing Oil Demand List By Application
Table 2020-2025 Europe Cleansing Oil Key Players Sales List
Table 2020-2025 Europe Cleansing Oil Key Players Market Share List
Table 2020-2030 Europe Cleansing Oil Demand List By Type
Table 2020-2025 Europe Cleansing Oil Price List By Type
Table 2020-2030 Germany Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Germany Cleansing Oil Import & Export List
Table 2020-2030 France Cleansing Oil Market Size And Market Volume List
Table 2020-2030 France Cleansing Oil Import & Export List
Table 2020-2030 United Kingdom Cleansing Oil Market Size And Market Volume List
Table 2020-2030 United Kingdom Cleansing Oil Import & Export List
Table 2020-2030 Italy Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Italy Cleansing Oil Import & Export List
Table 2020-2030 Spain Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Spain Cleansing Oil Import & Export List
Table 2020-2030 Belgium Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Belgium Cleansing Oil Import & Export List
Table 2020-2030 Netherlands Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Netherlands Cleansing Oil Import & Export List
Table 2020-2030 Austria Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Austria Cleansing Oil Import & Export List
Table 2020-2030 Poland Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Poland Cleansing Oil Import & Export List
Table 2020-2030 Russia Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Russia Cleansing Oil Import & Export List
Table 2020-2030 Mea Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Mea Cleansing Oil Demand List By Application
Table 2020-2025 Mea Cleansing Oil Key Players Sales List
Table 2020-2025 Mea Cleansing Oil Key Players Market Share List
Table 2020-2030 Mea Cleansing Oil Demand List By Type
Table 2020-2025 Mea Cleansing Oil Price List By Type
Table 2020-2030 Egypt Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Egypt Cleansing Oil Import & Export List
Table 2020-2030 Israel Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Israel Cleansing Oil Import & Export List
Table 2020-2030 South Africa Cleansing Oil Market Size And Market Volume List
Table 2020-2030 South Africa Cleansing Oil Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Cleansing Oil Import & Export List
Table 2020-2030 Turkey Cleansing Oil Market Size And Market Volume List
Table 2020-2030 Turkey Cleansing Oil Import & Export List
Table 2020-2025 Global Cleansing Oil Market Size List By Region
Table 2020-2025 Global Cleansing Oil Market Size Share List By Region
Table 2020-2025 Global Cleansing Oil Market Volume List By Region
Table 2020-2025 Global Cleansing Oil Market Volume Share List By Region
Table 2020-2025 Global Cleansing Oil Demand List By Application
Table 2020-2025 Global Cleansing Oil Demand Market Share List By Application
Table 2020-2025 Global Cleansing Oil Key Vendors Sales List
Table 2020-2025 Global Cleansing Oil Key Vendors Sales Share List
Table 2020-2025 Global Cleansing Oil Key Vendors Revenue List
Table 2020-2025 Global Cleansing Oil Key Vendors Revenue Share List
Table 2020-2025 Global Cleansing Oil Demand List By Type
Table 2020-2025 Global Cleansing Oil Demand Market Share List By Type
Table 2020-2025 Regional Cleansing Oil Price List
Table 2025-2030 Global Cleansing Oil Market Size List By Region
Table 2025-2030 Global Cleansing Oil Market Size Share List By Region
Table 2025-2030 Global Cleansing Oil Market Volume List By Region
Table 2025-2030 Global Cleansing Oil Market Volume Share List By Region
Table 2025-2030 Global Cleansing Oil Demand List By Application
Table 2025-2030 Global Cleansing Oil Demand Market Share List By Application
Table 2025-2030 Global Cleansing Oil Key Vendors Sales List
Table 2025-2030 Global Cleansing Oil Key Vendors Sales Share List
Table 2025-2030 Global Cleansing Oil Key Vendors Revenue List
Table 2025-2030 Global Cleansing Oil Key Vendors Revenue Share List
Table 2025-2030 Global Cleansing Oil Demand List By Type
Table 2025-2030 Global Cleansing Oil Demand Market Share List By Type
Table 2025-2030 Cleansing Oil Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Cleansing Oil Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Cleansing Oil Market Size And Cagr
Figure 2020-2030 North America Cleansing Oil Market Volume And Cagr
Figure 2020-2030 South America Cleansing Oil Market Size And Cagr
Figure 2020-2030 South America Cleansing Oil Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Cleansing Oil Market Size And Cagr
Figure 2020-2030 Asia & Pacific Cleansing Oil Market Volume And Cagr
Figure 2020-2030 Europe Cleansing Oil Market Size And Cagr
Figure 2020-2030 Europe Cleansing Oil Market Volume And Cagr
Figure 2020-2030 Mea Cleansing Oil Market Size And Cagr
Figure 2020-2030 Mea Cleansing Oil Market Volume And Cagr
Figure 2020-2025 Global Cleansing Oil Market Volume And Growth Rate
Figure 2020-2025 Global Cleansing Oil Market Size And Growth Rate
Figure 2025-2030 Global Cleansing Oil Market Volume And Growth Rate
Figure 2025-2030 Global Cleansing Oil Market Size And Growth Rate
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1)Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2)Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1)PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2)Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3)Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4)SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
Primary Sources | Secondary Sources |
---|---|
Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |