KUALA LUMPUR: Ho Wah Genting Bhd, via unit HWGB Capital, plans to acquire a 55 per cent stake in Apotheke, a renowned premium fragrances and organic skincare products.

Ho Wah - whose business interests encompassing biotechnology, manufacturing, trading and travel - said it wants to tap into the booming organic skincare market.

This is driven by health-conscious consumers, environmental awareness and stricter regulations.

Apotheke primarily operates in the fragrances, beauty skincare and related products sector.

Details of the acquisition price will be disclosed upon finalisation of the definitive agreement, said Ho Wah in a filing to Bursa Malaysia today.

"The acquisition comes strategically as the organic skincare market is experiencing robust growth, propelled by the rising demand for natural alternatives to conventional beauty products," it said.

Ho Wah said health-conscious consumers has driven this surge in demand, heightened awareness of the environmental impact of the beauty industry, and governments implementing stricter regulations on synthetic and harmful ingredients. 

As younger demographics prioritise sustainable brands and transparency, the global organic skincare market is expected to grow at a compound annual growth rate of 8.5 per cent from 2022 to 2027, reaching an estimated value of US$25 billion by 2027. 

The primary drivers of this growth are expected to be face care products, but there is also significant potential in body care, hair care and specialised products targeting specific skin concerns. 

"Brands that focus on product efficacy, ingredient transparency, and sustainable practices are well-positioned to capitalise on this lucrative market segment," it said.

Established in 2010, Apotheke is known for its wide array of high-quality fragrances and organic skincare products.