Thailand’s beauty and personal care products market was valued at approximately $7.2 billion in 2019 and is expected to reach $9.0 billion in 2022. Thailand’s beauty industry has grown by 7.2-7.9% annually over the last six years. The beauty care and personal care market in Thailand are projected to have a healthy growth of 9.3% per year from 2019 to 2022. Beauty and personal care segments are among the fastest-growing of consumer goods areas.
Key trends are:
- The aging population is a growing segment especially in skin care and oral care.
- A significant portion of demand is driven by inbound tourists, especially Chinese and other Asians who like to buy beauty and personal care products to take back to their home countries.
- Premiumization and new products are driven by natural and organic demand.
- Store-based retail shifting towards multi-brand especially for beauty products.
- Non-store retail shifting towards the online store, with rapid growth.
- The market becomes more fragmented driven by private labels targeting mass tier and new entrants trying to capture specific niches.
There has been increasing attention for multi-brand stores offering a wide variety of brands with tiers ranging from mass to high-end. Multi-brand store examples are Sephora, Beautrium, Stardust, Beauty Market and Lashes. Grocery retailers such as Tesco Lotus and Big C, or specialist retailers such as Watsons and Boots, have their own private label brands, normally located on the shelf next to other brands, and aim to offer more budget-friendly choices for consumers.
Due to an increasing awareness of health and wellness among consumers in Thailand, there is a healthy demand for natural and herbal personal care and beauty products.
Anti-aging and skin whitening products in both higher and lower ends of the quality spectrum continue to have a strong presence in the Thai market. The use of anti-aging products has become common among both male and female consumers.
Men’s grooming is expected to become increasingly dynamic. Factors such as growing social acceptance of men’s grooming are a result of exposure to metrosexual trends, delayed marriage, and peer pressure that maintain demand for the products. Skin care and hair care are the biggest categories in men’s grooming.
Southeast Asia, including Thailand, Malaysia, Indonesia, Vietnam and Singapore, will be the largest consumer of cosmetic chemicals in the near future.
The best sales channel for the launch of new product lines?
The eCommerce market in Southeast Asia is one of the fastest-growing and most promising with its projection to grow to $11 billion in 2025. According to the Electronic Transactions Development Agency, in 2017 the total eCommerce market in Thailand was estimated at $2 billion. The total Thai eCommerce revenue is expected to reach $3.5 billion in 2018. The driving factors arise from increased Internet and mobile phone use as well as improved logistics and e-payment systems. This creates heightened convenience and consumer confidence to shop online. In addition, the quality and reliability of online shopping services have improved significantly, and the acceptance of eCommerce has increased throughout the country.
Further, the Thai government focuses on its “Thailand 4.0” policy, which includes allocating a budget for the specific purpose of constructing a broadband network for all villages across the country. Having a nationwide broadband network will help bridge the digital divide and promote modern economic development through the eCommerce channel. Moreover, the government has a vision of creating the next generation of digital application platforms to accommodate and promote online activities including e-marketplace, e-payments, and e-government. Eventually, the goal is for villagers to start doing eCommerce businesses for their local products and services.
Why do Thai consumers buy beauty products from online stores
Data from ecommerce IQ Beauty Survey Thailand 2018 shows price is an important factor as 25% of the total 1,874 respondents answered discounts as the top reason to shop beauty products online. Free delivery (24%) followed closely as the second reason.
What beauty items are purchased online? In general, Thais mostly shop online for skin care products (31%) and color cosmetics (31%), possibly due to high product availability and exclusivity online. Understandably, color cosmetics are mostly purchased by female, while males and third-gender individuals mainly purchase men’s grooming products online
For online purchases, most Thais choose to shop on Lazada (30%) and Shopee (27%), the two biggest ecommerce platforms in Southeast Asia. In line with the top reasons to shop this category online, the two websites are chosen for the many discounts they offer (34%) and because consumers find it convenient to shop on these platforms (35%) as they’re already familiar with the sites.
The Thai FDA is the government department responsible for issuing licenses to importers and producers of cosmetics. Anyone intending to import such products in Thailand needs to obtain a registration from the FDA. The Thai FDA also has authority to control product advertising, ensuring that the claims made by producers are backed by proper evidence and studies.
Also warehouse must be licensed, specifically for your kind of products.
Thai FDA registration for cosmetics follows only one procedure: Cosmetics must be registered and the list of ingredients, together with all relevant information, must be kept in the Product Identification File (PIF), under the responsibility of License Holder.
There’s no way for the foreign manufacturer to get a license under his company name: only Thai entities (subject to several licenses and controls) can register a product in Thai FDA.
Selling on line in Thailand can be safe and profitable, but the manufacturer must consider that Rules are strict and compliance must be respected. In order to do it, only two roads are walkable: opening your local branch in Thailand or using Kha Bangkok One Stop Shop Service. Two know more about it contact email@example.com