Industry News: How will personal care companies explore the Southeast Asian market in 2024?

As an emerging market, Southeast Asia has attracted the attention of many businesses due to its advantages such as policy support, demographic dividend, and high internet penetration rate, making it a hot spot for domestic brands to expand internationally.

It is predicted that by the end of 2024, the revenue of the beauty and personal care market in Southeast Asia will reach $34.22 billion, with an annual growth rate of 3.30%. It is expected to reach $38.96 billion by 2028. Among them, personal care is the largest segment in the Southeast Asian beauty market, with an estimated market size of $16.63 billion in 2024.

Changes in the scale of the personal care market in Southeast Asia from 2018 to 2028

       Three Typical Characteristics of Southeast Asian Market User Portrait:

· Value appearance greatly; 62% of Southeast Asian consumers experience appearance anxiety, with a large portion willing to spend more on appearance modifications, indicating enormous potential in the Southeast Asian personal care market.

· Have a habit of purchasing personal care skincare products; 96% of consumers have purchased personal care skincare products in the past 3 to 6 months.

· Diverse shopping preferences; 54% of consumers express a strong willingness to try new products, such as trendy products from China like light foundation creams and lip gloss, which are easily accepted by Southeast Asian consumers.

Sales volume of personal care categories on Shopee and Lazada in Southeast Asian countries in 2023

The data shows that in 2023, the total sales of personal care products on Shopee and Lazada platforms exceeded 42 billion RMB, with a consistent annual growth rate of over 30%. Given the favorable market size and high growth, Southeast Asia undoubtedly serves as an important starting point for the overseas expansion of Chinese personal care brands. This article will analyze the opportunities in the skincare market across various countries in Southeast Asia.

Sales performance of personal care subcategories on the Shopee Indonesia platform in 2023

Indonesia boasts the largest online skincare market in Southeast Asia. The total sales of personal care products on Shopee Indonesia in 2023 reached as high as 13.1 billion RMB for the entire year, a 35% year-on-year increase. Skincare products, body care, and beauty sets are the top three subcategories in demand, accounting for over 50% of the overall market share. Among them, skincare products achieved sales exceeding 4 billion RMB for the year, representing a year-on-year increase of over 40%, showcasing substantial volume and rapid growth.

Sales performance of various subcategories under the skincare category on Shopee Indonesia in 2023

It can be seen that facial moisturizers and facial serum essences are the top two product lines. Worth mentioning is that, although sun protection products only account for 11% of the market share, their year-on-year growth rate has reached 100%, indicating considerable market potential. Due to Indonesia's typical tropical climate of high temperatures, high humidity, strong ultraviolet radiation, and urban pollution, functional protective products are highly sought after in the market. When promoting product highlights, brands and merchants should emphasize the high protection value, waterproof function, and concealing beauty effects of the products, which will lead to more substantial sales volume.

Performance of personal care brands on Shopee Indonesia in 2023

The skincare market on Shopee Indonesia is highly competitive with relatively low concentration, currently featuring nearly 24,000 brands and over 4 million products. Among them, the local brand Skintific has shown outstanding performance over the past year, with a growth rate exceeding 200%, and occupying a market share of 5.1%. Additionally, Skintific also holds the top position on the Lazada platform, with a market share of 3.8%, achieving a growth rate of over 500% in 2023.

According to research by global market research firm Mintel, the current turnover of the beauty and personal care market in Vietnam is approximately $2.3 billion. With the increasing middle-class population, the demand for beauty and personal care products in Vietnam is expected to experience strong growth in the near future. The cosmetics and beauty industry is in a rapid development stage, with an increasing number of domestic and international companies investing heavily in the beauty and personal care market.

Vietnamese consumers always prefer to purchase skincare products. They believe that having good skin is more important than makeup. Therefore, facial cleansers, toners, moisturizers, and serums are the best-selling skincare products in Vietnam. Vietnamese people prefer products with natural ingredients, especially those containing traditional ingredients like rice, green tea, and lotus. Due to Vietnam's hot and humid climate, sun protection is also crucial for Vietnamese consumers, and products that promote skin whitening or brightening effects are highly sought after.

Opportunities in the Vietnamese Market: Consumers perceive products manufactured in Asia to be more suitable for their skin types than those manufactured in Europe. Chinese brands are quite popular in the Vietnamese market and hold significant market potential, providing opportunities for Chinese cross-border sellers.

Challenges in the Vietnamese Market: Consumers are highly sensitive to prices. They tend to purchase lower-end products rather than higher-end ones. Therefore, to attract consumers and remain competitive in the market, brands need to adjust product prices to align with the purchasing power of Vietnamese consumers.

Want to stay updated on the latest trends in the Southeast Asian beauty and personal care market, meet face-to-face with key buyers, and keep up with industry trends? Participating in local professional exhibitions is an effective way to achieve great results with minimal effort. PCE Yinghe Personal Care Expo, connecting global innovative resources, will be held from May 22nd to 24th, 2024, at the Jakarta International Expo Center in Indonesia. By facilitating "online matchmaking domestically and offline product displays internationally," it helps Chinese companies smoothly participate in overseas exhibitions. Through the full-chain service of "exhibits going global, exhibitors going online, buyers attending, and instant business negotiations," we aim to create a "high-quality and efficient" new exhibition model, fostering collaborative innovation and shaping a new ecosystem for personal care!