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Advice for Cosmetics Brands Entering the Japanese Market

This week, YOUNEEDS Co., Ltd. (“YOUNEEDS”) attended COSME Week 2025 in Tokyo. Many brands of all sizes attended, including foreign brands. Cosmetics are an attractive industry in Japan. As such, we thought it might be helpful to highlight an essential piece of advice for cosmetics brands on their Japan market entry journey.

Cosmetics brands display their wares on booths lining the event hall at Tokyo Big Sight for Tokyo COSME Week, 2025.
Visitors flock to COSME Week 2025 in Tokyo. Photo by Waka Someno, 2025.

Unique Regulatory Landscape

If your company is planning to enter the Japanese market as a foreign cosmetic brand, it is crucial to understand Japan’s unique regulatory landscape, which differs considerably from that of foreign markets. Specifically, there are two key laws which brands looking to enter the Japanese market need to be aware of. These are, the Act on Pharmaceuticals and Medical Devices (commonly known as Yakujihou) and the Act Against Unjustifiable Premiums and Misleading Representations.

Act on Pharmaceuticals and Medical Devices (Yakujihou)

The Pharmaceutical and Medical Device Act is the primary law governing the manufacturing, labeling, and sale of cosmetics in Japan. The purpose of this act is to ensure the safety and high quality of all products on the Japanese market. Under this act, businesses must obtain marketing authorization from a registered certification body before specified controlled medical devices may be sold in Japan.

Key points to consider include:

  • Ingredient Regulations
    Japan has strict regulations on cosmetic ingredients. Certain substances that may be allowed in other countries are prohibited or restricted in Japan. Before exporting your products, ensure that all ingredients comply with Japanese standards.
  • Product Classification
    Under this act, products are categorized as cosmetics, quasi-drugs (medicated cosmetics), or pharmaceuticals. Each category has different requirements. For example, if your company wishes to advertise effects like “brightening” or “acne prevention,” your product must be registered as a quasi-drug, which requires additional approval.
  • Labeling and Advertising
    Labels and advertisements must be accurate, clear, and compliant with Japanese standards. Vague or excessive claims, such as “instant results” or “healing effects,” are generally prohibited unless backed by proper approval. Additionally, labels must include specific information in Japanese, so careful localization by an expert team is essential.
  • Manufacturing and Distribution Licenses
    To sell cosmetics in Japan, brands must work with a registered distributor that has obtained the required manufacturing and sales licenses from the Ministry of Health, Labour and Welfare.

Act against Unjustifiable Premiums and Misleading Representations

If your business plans to sell its products through retailers, this law governs marketing practices. It prohibits misleading claims and excessive promotional offers. This makes sense, as transparent and fair advertising is, of course, essential to building trust with Japanese consumers.

The act aims to protect the interests of general consumers by prohibiting acts that are likely to interfere with consumers’ voluntary and rational choice-making. This in turn helps prevent the inducement of customers by means of unjustifiable premiums and misleading representations of goods and services.

While variations of this law exist in most economies, it is essential to confirm that your brand and its products conform to the legal requirements of the Japanese regulatory system. This will help ensure smooth market entry and the appropriate marketing of your products in Japan.

Work with Experts

Navigating regulations such as these can be challenging, especially for brands unfamiliar with Japan’s legal framework. Collaborating with regulatory consultants or legal professionals can help ensure your products meet all requirements before launching is a first step.

By understanding and complying with these laws, you can focus on showcasing the unique qualities of your brand while minimizing legal risks. Careful preparation with respect for legal requirements will doubtless pave the way for success in Japan’s competitive and highly lucrative cosmetics market.

Of course, our team at YOUNEEDS is ready and waiting to help you and your team navigate the legal hurdles which Japan’s regulatory market may represent in the cosmetics industry, and beyond. Get in touch with us here, or via our LinkedIn for a friendly and casual discussion of your needs.

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