Overview of the Cosmetics Market in Vietnam
Mục lục
Market Situation
Revenue Growth
The cosmetics market in Vietnam is experiencing remarkable growth, particularly in the export sector. According to statistics, in July 2022, the total export value is estimated at 30.32 billion USD, marking an 8.9% increase compared to the same period last year. Meanwhile, the total import value is estimated at 30.3 billion USD, showing a 3.4% increase.
This is a positive sign for the Vietnamese cosmetics industry, indicating growth and competitiveness of products in the international market.
The chart illustrates the projected revenue of the cosmetics industry from 2018 to 2027
The economic development, increasing incomes, and growing beauty awareness have driven the demand for cosmetics. According to statistics, from 2022 to 2023, the proportion of women using cosmetics significantly rose to about 90%, and the annual growth rate of the cosmetics market is expected to sustain at 15-20%. This is a notable figure, demonstrating the development potential of the domestic cosmetics industry.
Developing domestic brands
In addition to well-known international cosmetic brands, the Vietnamese market has also witnessed strong development of domestic cosmetic brands. Cosmetic companies have increasingly understood and responded to local consumer trends and demands regarding pricing, variety, and more.
Developing distribution channels
The distribution of cosmetics has undergone significant changes. In addition to traditional stores, supermarkets, and cosmetic retail chains, consumers can now purchase products through online channels such as e-commerce websites and mobile applications. This convenience benefits consumers and opens up new opportunities for businesses.
According to the e-commerce data platform Metric, revenue from beauty and personal care products on e-commerce platforms reached 22.2 trillion Vietnamese Dong in 2023, marking a 74% increase compared to 2022.
Despite economic challenges, the cosmetics sector continues to demonstrate potential with strong purchasing power on e-commerce platforms.
In particular, the leading category in the cosmetics sector is facial skincare, which saw a 61% growth compared to the same period in 2022. Serums, sunscreens, and moisturizers are the top-selling products, with revenues of 2,262 billion VND, 1,873 billion VND, and 1,576 billion VND respectively.
Enhanced advertising and consumer outreach
Cosmetic companies are increasingly investing heavily in advertising and consumer outreach through campaigns, online marketing, and collaborations with celebrities and influencers on social media. This helps enhance consumer awareness and build trust among consumers.
The Vietnamese cosmetics market is currently one of the most dynamic in the region. According to Tuoi Tre newspaper, the percentage of Vietnamese women regularly using beauty products increased from 76% to 86% during the period from 2020 to 2023.
Diversification of demand
Consumers in Vietnam are increasingly diversifying their demand for cosmetics. They are not only interested in basic makeup and skincare products but also in hair care, body care, and overall beauty products. This creates opportunities for cosmetic companies to expand their product lines and serve a broader range of customers.
Consumer trends in cosmetics in Vietnam
Organic, vegan, non-toxic
In recent years, the market for organic, non-toxic (cruelty-free), vegan (free of animal by-products), and plant-based (completely free of animal ingredients) cosmetics has been increasingly popular in developed countries and is finding its place in emerging markets such as India, China, Brazil, and others. Prolonged use of synthetic cosmetics can lead to various health issues such as irritation, hormonal imbalance, and toxicity. However, products made from organic ingredients, such as plant extracts and natural oils, are gentle on the skin and do not cause harm. Therefore, consumers are increasingly interested in organic, vegan, and non-toxic cosmetics.
Consumer preference for vegan and organic cosmetics is driving the market forward. Non-animal alternatives can involve cultivating human skin models in laboratories to test cosmetic products. Customizable model creation helps reduce costs and increases result accuracy. Technological advancements mean models can replicate different ages and skin tones. Growing demand for vegan cosmetics among younger generations, with technological advancements, has spurred market growth.
Gender-neutral cosmetics, cosmetics for men
The male segment is showing a strong presence in the market due to increasing awareness among men about their appearance and health. This factor has boosted sales of beauty products tailored for men. A large number of men are employed in professions such as sales, hotel, aviation, and others, which require regular interaction with clients or customers. This has led to increased use of cosmetic products by men who need to maintain a polished appearance. For instance, according to a survey by The Bluebeards Revenge in the UK in 2018, 52% of men surveyed said they planned to spend more on grooming products in the coming year. In Asia, as men increasingly embrace skincare and fitness trends, the message of equality in beauty rights has created its own allure.
The global men’s cosmetics market surpassed a staggering USD 63 billion in 2023. With a current growth rate of 9.4%, the market is projected to reach over USD 130 billion by 2030, according to Custom Market Insights (CMI). This serves as a testament to the evolving landscape of the beauty industry, which is no longer solely dominated by women. This trend is particularly evident in the Asian market.
Under the development of technology, there has been a rise in cosmetics formulated based on biomedical science knowledge. Embracing the unisex trend in the beauty industry, cosmetic brands are now focusing more on clearly labeling which skin types their products are suitable for, rather than categorizing them strictly by gender as before. Additionally, packaging is designed with neutral colors and styles so that anyone, regardless of gender, can use them.
The trend of using high-end cosmetics
Vietnamese consumers have become more concerned about the quality of beauty products, especially due to the harsh weather conditions and air pollution impacting human skin negatively. Therefore, the two most focused factors are the origin and ingredients of the products. Price is no longer the primary concern nowadays.
According to data from viracresearch, spending on cosmetics has also increased by 10% among regular users. Particularly, for makeup products, this group is willing to spend more to acquire products of higher quality and more safety standards.
It seems like you are interested in investing in the cosmetics manufacturing sector in Vietnam. VKI, with its extensive experience in consulting and implementing numerous projects in this field, promises to provide professional and thorough support to investors. With VKI, investors can choose prime locations for construction, complete and comprehensive legal procedures.
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