Based on Statista, Southeast Asia’s beauty and personal care market will generate around $92 billion in 2024. Online sales can account for 20.4% of the total revenue. With these numbers, Southeast Asia will become the largest and one of the world’s fastest-growing markets.
Moreover, the growing Southeast Asian market opens global possibilities for brands and e-commerce retailers. Will this market be your prime target, too? Before you decide, it is helpful to learn more about Southeast Asian beauty and personal care trends and consumers.
The Beauty and Skincare Market in Southeast Asia
Southeast Asia has a promising beauty and skincare market. Its online engagement and e-commerce have also been thriving and expanding. The numbers speak for itself. According to Statista, among Southeast Asian countries, Indonesia will reach USD 160 billion by 2030 in retail sales. Indonesia will also lead the Southeast Asian e-commerce market by 42% in 2030. Other developing countries like Vietnam, Thailand, and the Philippines are keeping up with this number. The Southeast Asia e-commerce market undoubtedly allows numerous retail brands and marketplaces to emerge.
Further, Southeast Asia’s landscape market is competitive. Various companies from Europe, America, South Korea, China, Japan, Thailand, etc. vie for a spot in the market. For example, Amorepacific group taps into e-commerce in Southeast Asia by partnering with Shoppe in 2021. This move allows a broader scope of their services and provides customers with a product variety. Many of these companies and brands have succeeded because of solid strategies and supply chains. Other emerging start-ups in the beauty and skincare market can do the same.
Market Trends for Beauty and Skincare Care in Southeast Asia
If you’re looking for inspiration on how to be a top-selling start-up brand in Southeast Asia, you shouldn’t miss out on the following trends!
Korean beauty is one of the most popular trends in the beauty and skincare market. Thanks to the influence of the Korean Wave, the beauty and skincare market adapted practices and styles to apply to new products. For instance, Korea is famous for its 10-step skincare routine, a global lifestyle change for many consumers. This country also focuses on glowy, natural, and fairer skin. Products like sheet masks, toners, and essence have been incorporated into the Korean beauty skincare routine to make this preference happen.
A survey conducted in Malaysia found that 65% of respondents liked Korean beauty and skincare products. Vietnam and Indonesia follow this number with 61.2 and 59.8 percent, respectively. This percentage speaks of the exceptional Korean beauty you can use to market your Southeast Asian products.
The clean beauty trend arises as consumers become mindful of their health and environment. Clean beauty movements are opposed to using harmful chemicals that can damage the skin, cause diseases, and harm the environment. Some of these chemicals are ingredients like parabens, talc, synthetic fragrances, etc. Consumers took steps to research clean beauty products. There are 1.2 billion views on TikTok and 5.6 million on Instagram about clean beauty.
Since consumers are actively looking for non-toxic and environmentally friendly products, you can take a step and provide them with what exactly they are looking for! Like Sephora and Ulta, which have their clean beauty programs, you can launch beauty and skincare products free from ingredients like paraben, hydroquinone, and phthalates.
Another growing trend in Southeast Asia is halal products, which reflects the Muslim customer base. The market share of halal beauty and skincare products is flourishing, with over 10% in Indonesia and 15% in Malaysia. Indonesia’s market share will rise from 2.7% to 7.1% from 2019 to 2022. There has also been a Halal Product Certification Bill in Indonesia, which suggests that all products sold to Indonesian consumers must be halal certified.
Despite this limitation, you can still take the edge of products trending to Muslim consumers, for instance, creating haircare products perfect for women wearing hijabs. You can also make body freshening products with anti-perspiration and deodorization capabilities, ideal for humid countries. Options for product creation are still possible in Southeast Asia’s halal industry.
Advantages of the Beauty and Skincare Care Industry in Southeast Asia
The following are some of the advantages of the beauty and skincare industry in Southeast Asia:
Growing Market on Social Media
Social media in Southeast Asia helps with the beauty and skincare market. Product sales and popularity sparks are evident in Indonesia, Thailand, and the Philippines. Consumers’ waves of interest can be recognized as trends, beauty influences, and social media materials evolve—this growth, for example, by placing products through e-commerce to go with online shopping in Asia.
Consumer social media usage increases sales and marketing potential for companies and brands. What can be seen in social media can draw more consumers to learn about the products and brands. This scenario can lead consumers to invest.
Interest in New Brands and Products
Southeast Asia towers over the beauty and skincare market. According to Retailasia, skincare is the most prominent segment, with a 50% market share. With this percentage, new brands can ride the industry’s growth and increase the landscape dynamic.
Moreover, consumers in countries like Singapore are always looking for new items. A factor social media plays for. Consumers like to purchase recent products and brands offering “something new.” That is why the latest and most advanced technology is always in.
Preference for Natural and Organic Products
Products with natural and organic ingredients are boosting and trending. According to Euromonitor International, focusing on health and hygiene has gained popularity. The ASEAN organic cosmetics market, in 2021, had a sales value of US$ 3,944.5 million. In 2022-2030, it will grow annually at 7.8% (CAGR). This number proves that Southeast Asian consumers are picking products made of natural ingredients, herbal or sustainable materials.
For instance, Euromonitor stated that 28% and 31% of Indonesian and Thai consumers are willing to pay an extra 10% -20 % for scientific formulations. Removing toxic ingredients paved the way for beneficial products and innovative formulations. This results in brands adapting the change to fit consumer standards.
Rise of Global e-Commerce
Southeast Asia e-commerce, based on PropertyGuru, anticipates reaching around USD 230 billion by 2026, which will triple from 2021. Consumers are now keen to buy different products online. With this, e-commerce platforms such as Shoppe, Lazada, Tokopeda, etc., are taking over. Various platforms like TikTok and FaceBook are also investing in e-commerce. Because consumers prefer purchasing products online, the Southeast Asian e-commerce market opens doors for brands and companies to sell.
Increase in Consumers and Consumption
Southeast Asia has one of the largest consumer populations in the beauty and skincare industry. According to iStrata Intelligence, middle-aged adults aged 25-54 account for 40%, which makes them the biggest consumers in Southeast Asia. Next are young adults ages 15-24, which accounts for ⅙ of the consumer population.
These consumers have different purchasing attitudes. For example, young adults are keen on budget-friendly products and willing to try new ones. In contrast, middle-aged adults are loyal to consuming brands and products they trust. Despite this difference, these consumers have one thing in common: regular cosmetic and skincare product users. That means they can still be your consumers, too.
Future of Southeast Asia on Beauty and Skincare Care
Are you interested in diving in the market? Here’s what the beauty and skincare industry future awaits for you.
Diverse Aesthetic Preferences
Southeast Asian consumers have various aesthetic preferences. Companies and brands vying to market in Southeast Asia should adjust to consumer preferences through product choices and marketing tactics. For example, Malaysian consumers prefer products that are alcohol-free, cruelty-free, and halal-certified. That is due to their cultural and religious influences. Another would be Filipino consumers who use whitening products to make their skin fair and glowy. Other countries also have distinctive preferences you can note to cater to consumers appropriately.
Using e-Commerce to market
E-commerce in Asia has been growing. Thus, it is one of the most efficient ways of selling beauty and skincare products. In Indonesia, the online market accounts for 11% of the sales, and 89% comes from direct and retail sales. Similarly, Singapore has 11% of its online market sales and 85% of its direct and retail sales. Southeast Asia eCommerce will continue in the future, so social media and new products will remain relevant.
Increasing Number of Male Customers
The men’s skincare market has attracted more attention. That means an increased demand for male beauty and skincare products. In Thailand, there is a high demand for male skincare products as many men in their 30s-40s have oily skin problems. Since it is becoming socially acceptable for men to take care of their skin and invest in their looks, there would be an upsurge in men buying skincare and grooming products.
Impact of Pop Culture
Beauty and skincare products have been influenced by pop culture as consumers choose something in line with their likes. This impact has led companies and brands to use social media and pop culture to market their products effectively. For instance, they can use social media influencers and celebrities to promote their products. A product or brand can be well known through its advertisement and recommendations.
Concern over Sun Protection
Southeast Asia falls in the tropical and subtropical climatic zone. For this reason, southeast asians suffer from sun and radiation exposure. It is essential to take sun protection seriously. This growing concern led to increased demand for sun protection products in Singapore. Therefore, this realization prompted Southeast Asia’s Sun Protection Market to generate US$ 0.41 billion in sales by 2024. Products like tinted sunscreen and sunscreen spray can also serve as solutions.
Focus on Long-Lasting Products and Ingredient Efficacy
As mentioned, Southeast Asia is a tropical country. This weather makes sweat, dust, and pollution in the skin typical. As a result, consumers are eager to buy products that cater to this problem and are long-lasting. To name a few products, antiperspirant deodorant, water-and-sweatproof eyeliners, gel-based moisturizer, and spray sunscreen.
Ways on How Emerging Brands Can Keep Up
Embrace OEM/ODM/Private Label Customization Service
Beauty and skincare OEM, ODM, and Private Labels provide top-notch manufacturing and formulation services. As a company or brand that wants to keep up in the fast-paced market in Southeast Asia, these options offer stringent management control and product launches. Companies like TY Cosmetics can help small brands and start-up companies because they have resources and experience. It will be beneficial if you are seeking efficiency and manufacturing solutions.
Establish Brands through Trends
We have mentioned the various trends you can cover in your brand and products. Since the Southeast Asia market is continuously growing, you must find a unique take to maintain your position. Go for innovative solutions and find the right balance between R&D and marketing.
Put the User Experience First
Online Shopping in Asia become popular today. However, we must always find the balance between online and offline marketing. Online exposure allows brands and companies to reach many consumers locally and globally. It also increases brand awareness, social media engagement, and website traffic. In contrast, offline exposure allows interaction with your consumers. It gives the products a unique experience firsthand, wherein they can provide insightful feedback.
Southeast Asia’s beauty and skincare market has great potential and growth. Southeast Asia has also increased its eCommerce market and logistics, aiding income and consumption. It has become a competitive industry where brands and companies fight for a spot. Therefore, if you also want to be spot on in this market, TY Cosmetic can help! We have all-inclusive services, award-winning manufacturing services, and certifications, so don’t hesitate to contact us.