Japan Cosmetics, Household & Personal care Apr-Jun 2026 preview: What comes after the price hikes?

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Japan Cosmetics, Household & Personal care Apr-Jun 2026 preview: What comes after the price hikes?

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Japan Cosmetics, Household & Personal care

Apr-Jun 2026 preview: What comes after

the price hikes?

Price Objective Change

16 July 2026

Toiletries: Volume growth varies across companies Equity

In Japan, sales look broadly resilient following price revisions, mainly in detergents/fabric Japan

softeners and oral care, and we expect profitability in domestic operations to continue Cosmetics, Household & Personal

improving across the sector in Apr-Jun 2026. However, domestic diaper volumes are care

slowing, while the pace of overseas recovery varies by region and category. We expect

Kentaro Hosoda >>

higher raw-material costs to become evident from 2H and believe the scope for further Research Analyst

price increases and each company’s volume resilience will drive earnings divergence. BofAS Japan

+81 3 6225 6293

kentaro.hosoda@bofa.com

Cosmetics: A difficult path back to growth Akiko Kamimura >>

In cosmetics, demand from Chinese tourists visiting Japan remains a headwind, while Research Analyst

BofAS Japan

skincare demand, particularly in Asia, continues to hold up well. China seems to have +81 3 6225 8086

moved past the worst, but recovery is gradual, making it difficult to envisage a return to akiko.kamimura@bofa.com

previous China-led growth model. Restructuring is improving profitability at each

company, but focus shifts to whether brand investment/new product launches can

Exhibit 1: We assign Buy rating onrestore top-line growth.

Rohto, Lion and Pigeon

Stock pick: Recommend Pigeon, Kao attractive near-term Investment ratings & price objectives

Pigeon: We raise our PO to ¥2,400 from ¥2,200 (+19% upside). We highlight the Ratin PO