Sexual Wellness Market in East Asia - Industry Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The growing acceptance of female sexual wellness products is likely to boost the sale of sexual wellness products in East Asia

The presence of a large young population, the growth in per capita disposable incomes in several East Asian countries, and the increasing openness toward sexual fantasies are the significant factors contributing to the growth of the East Asia sexual wellness market. In the last decade, the social dynamics of Asia has observed a noticeable change as a high number of women are asserting their sexuality and sexual preferences. Besides, the rising awareness toward contraceptives and sexually transmitted diseases (STDs) has increased the sale of sexual wellness products, particularly condoms.

Branding has emerged as a critical strategy for vendors to create a lasting impression on the end-user. The use of social media is one of the most effective branding strategies, which is boosting the East Asia sexual wellness market. The rapid growth of the digital world is helping vendors to increase their reach and scope in the market. Digital platforms provide an extensive range of products in a single place. Further, collaborations with social organizations and government agencies are helping vendors to increase marketing and advertising. Attractive and informative branding and campaigning is emerging as a significant source of revenue for vendors.

Further, the increasing collaboration with government agencies for increasing awareness about STD, the growing use of contraceptives, the popularity of sexual education, and the acceptance of sexual wellness products among women are likely to boost the sale of sexual wellness products in socially restrictive societies such as East Asia. The East Asia sexual wellness market is expected to grow at a CAGR of more than 7% during 2018−2024. 

EAST ASIA SEXUAL WELLNESS MARKET: SEGMENTATION

This market research report includes a detailed segmentation of the market by

• Product
• Distribution channel
• End-users
• Geography

 EAST ASIA SEXUAL WELLNESS MARKET: PRODUCT TYPES

Condoms have emerged the best measure for preventing STDs and other sexual dysfunctional disorders 

A high inclination toward adopting new technology in sexual wellness products is a significant factor, which is contributing to the growth of the market. For instance, the introduction of sex dolls, which are manufactured in China, powered with artificial intelligence, is expected to disrupt the sexual wellness market worldwide. China has emerged as a key manufacturer of sex toys, which is encouraging other vendors to set up manufacturing units in the country. Further, Japan has also shown incremental growth in the demand for sex dolls due to low levels of sexual satisfaction in the aging population.

Condoms have emerged as a preventive solution for preventing STDs and decreasing fertility rates, thereby helping to evolve demographics changes and prevent the population explosion in East Asia. China and Malaysia are the key condom manufacturers. The rise in awareness about the utility of condoms to prevent STDs and other sexual diseases has boosted the condom market in Malaysia.

China, Singapore, Japan, and South Korea are leading countries that are imparting sexual education and individual sexual health to the public. Further, the sex lubricants market is witnessing a rise in the demand for female-centric lubricants. Herbal sexual lubricants have noticed a significant growth in the East Asia sexual wellness market. Similarly, the exotic lingerie market is also witnessing strong demand from developing countries such as Singapore, Thailand, and South Korea.

EAST ASIA SEXUAL WELLNESS MARKET: END-USERS

The introduction of several female-centric sexual wellness products is expected to drive the East Asian market

Better user experience, easy acceptability, and convenience are some of the major factors for the high contribution of the male condom segment. The male end-users segment occupied the largest share of the market in 2018. Condoms, sex dolls, and sex toys are some of the male-centric products. Thus, the increasing likeness of males toward sexual wellness products is expected to drive the East Asia sexual wellness market during the forecast period.

Further, the sexual wellness market has witnessed a shift as it is increasingly introducing women sexual products. The introduction of several female-centric products is driving the market. For instance, female condoms, vibrators, dildos are gaining traction in the market. Hence, the increased demand for innovative sexual products is attracting new start-ups to enter the market. For instance, in 2016, Trina Yeung, the founder of an online sex toy store, Maison Mika, started selling sex toys and “curated pleasure boxes” targeted at women in Singapore.

EAST ASIA SEXUAL WELLNESS MARKET: DISTRIBUTION

The growth in online sales in the East Asian market is set to increase by over 20% YOY during the forecast period.

Sexual wellness products are mainly sold through retail distribution channels such as specialty stores, supermarkets, hypermarkets, mass-market players, drug stores or pharmacies, and grocery stores. Sexual wellness product manufacturers are harnessing sex specialty stores and supermarkets due to personalized customer services, which is boosting the offline retail market. Although online purchasing is increasing, a significant share of sexual wellness product distribution takes place through sex specialty stores.

Online sales are aiding vendors to promote the concept of safe sex. More than 95% of online retailers offer products at discounted prices. The availability of substantial discounts and the presence of a wide range of products under a single roof are making online retailing a profitable distribution channel. Besides, the growth in online sales is set to increase by over 20% YOY during the forecast period. The online segment of the market is witnessing high traction in China. For instance, Alibaba, Payful2night.com, and Condom69.com are crucial online platforms for sex toy products.

EAST ASIA SEXUAL WELLNESS MARKET: GEOGRAPHY

Changes in the legal landscape are likely to provide stable market opportunities for condom manufacturers

China is the largest sexual wellness products manufacturer in the industry and captured more than half of the East Asia sexual wellness market in 2018. Well-defined expansion strategies such as the introduction of sex toy vending machines and artificial intelligence-based toys and sexy robots are driving the market in the region. Further, Japan is witnessing steady growth because of the aging population of the country. However, the Japanese sexual wellness market is expected to grow rapidly during the Tokyo Olympic 2020, which will emerge as a lucrative opportunity for vendors to showcase their products.  

Malaysia is one of the leading rubber-manufacturing industries, which is contributing to market growth significantly. Stringent laws about the distribution of sex toys have generated lucrative opportunities for online retailers. Further, Indonesia is one of the first countries to export innerwear. The country provides a wide business scope for exotic lingerie manufacturers. With several ongoing awareness programs, the country’s demographic is expected to change, which is likely to boost the East Asia sexual wellness market during the forecast period.

A well-established economy, the higher buyer potential, and the openness toward sexual wellness products are expected to drive the Singapore wellness market significantly. Condoms and exotic lingerie have high potential and are expected to boost the market in the coming years.

In South Korea, the change in the legal landscape is likely to provide stable market opportunities to the sexual wellness industry, particularly condom manufacturers. Further, vendors are expanding their presence due to the high demand for other sexual wellness products such as sex toys.

KEY VENDOR ANALYSIS

Currently, the competitive landscape of the sexual wellness market is intensifying. Rapidly changing market dynamics is attracting new vendors and start-ups toward the East Asia sexual wellness market. China and Japan are highly fragmented markets. Thus, to gain a competitive edge, vendors are continuously looking for upgrades and innovations in the specified product segment.

Further, the influx of local vendors is high. The adoption rate of new products is relatively high in developed countries. However, vendors are utilizing innovation as their key strategy to gain a competitive edge in certain product segment such as sex dolls. The presence of low-cost manufacturers in the market is making the market more challenging for established brands. Thus, well-known brands are using the acquisition and mergers strategy to penetrate the market. Also, vendors are focusing on boosting the distribution channel and utilizing social media platforms to enhance their market shares.

Major Vendors

• Church & Dwight
• Diamond Products
• Karex Berhad
• LifeStyles
• Okamoto
• Reckitt Benckiser

The East Asia sexual wellness market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Market Segmentation by Product Types

• Sex Toys
• Condoms
• Exotic Lingerie
• Sexual Lubricants
• Others

By End-users

• Male
• Female

By Distribution Types

• Retail
• Online

By Geography

• China
• Japan
• South Korea
• Malaysia
• Indonesia
• Thailand
• Singapore
• Philippines
• Vietnam
• Cambodia