Industry News: Understanding Consumer Trends and Exploring Raw Material Opportunities in Southeast Asia

 

Southeast Asia is viewed as a new growth driver, with its major markets experiencing stable GDP growth, expected to spur consumption demand and provide new growth opportunities for the beauty industry.

 

 

Consumers in Southeast Asia are also showing strong attention to skincare ingredients.

 

Understanding Southeast Asian Consumers' Beauty Habits

 

Added New Steps
36% of Generation Z consumers in Indonesia reported adding new steps to their facial skincare routine in the past three months.

Seeking High-Quality Ingredients
62% of Generation Z consumers in Vietnam stated that high-quality ingredients would encourage them to purchase beauty products at full price.

Consumers Focused on Brightening
47% of women in Thailand believe that a bright complexion best represents healthy facial skin.

 

Understanding the skin issues and preferences of Southeast Asian consumers

 

Experienced Redness
35% of women aged 18-34 in Indonesia reported experiencing skin redness in the past 12 months.

Seeking Skin Brightening
58% of consumers aged 18-34 in Thailand expressed interest in dermatological products that help brighten the skin.

Struggling with Acne
49% of women in Vietnam stated they experienced acne or pimples in the past 12 months.

 

Common Triggers of Skin Issues in Southeast Asia

 

Sun Damage Leading to Redness
A common cause of skin redness is sunburn or photoaging. Asian consumers typically have thinner epidermises, the outermost layer of the skin, making their skin more permeable and susceptible to irritation and redness.

Excess Sebum Leading to Acne
Due to higher sebum production, consumers in this region are more prone to acne. Excessive sebum can clog pores, leading to the formation of pimples, which is the initial stage of acne development. Southeast Asian consumers also often face environmental factors, such as high humidity and air pollution, which can increase sebum production and exacerbate acne.

 

Focusing on the Thai market, further exploration of key trends and market factors.

 

Substance Over Source: Thai Consumers Welcome Diverse Ingredients and Prioritize Effectiveness

Thailand: Top Five Considerations When Purchasing Beauty Products, 2024

 

·  68% Effectiveness

·  58% Price

·  44% Free of Harmful Ingredients

·  26% Brand

·  24% Format and Texture

·  24% Key Beauty Active Ingredients

 

Consumers require clear and understandable information about beauty ingredients, especially new ones, to make informed decisions

Most consumers have limited understanding of the beauty benefits of ingredients. Therefore, establishing a strong link between ingredients and their effectiveness is crucial.

 

Specific Efficacy
60% of Thai people agree that it is currently unclear which ingredients effectively address specific beauty concerns.

Skin Needs
39% of most Thai people strongly believe that it is necessary to understand which ingredients are suitable for their skin needs before purchasing skincare products.

Effective Dosage
28% of most Thai people strongly agree that understanding the concentration of active ingredients in a product is crucial before making a purchase.

 

Rising Demand for Skin Health Fuels the Increase in Functional Ingredients

 

Beauty products launched in Thailand emphasize skin health-related claims.

 

Skincare has become a dominant force in the beauty industry, accounting for 38% of all products launched in the past five years. In Thailand, consumers focus on products that promise moisturizing and brightening effects, highlighting a strong preference for improving skin texture. Notably, as many as 50% of Thai consumers associate bright, hydrated skin with overall facial skin health. This trend underscores the growing demand for beauty products that offer skin health benefits, particularly those focused on hydration, brightening, and enhancing the skin barrier.

 

Skin Health Ingredients More Prominent in Brightening Products

 

Traditional whitening products often contain ingredients like Vitamin C. With the growing trend of skin health, skincare brands in Thailand are leveraging the benefits of their whitening formulas. For example, Garnier's Natural Cherry Blossom Ceramide Gel showcases ceramides that repair the skin barrier, while Vaseline Pro Derma Transition Body Lotion uses Glutamic Ceramide technology to promote radiant, healthy skin.

 

In the past five years, Hyaluronic Acid and Ceramide derivatives have shown strong growth in Thai beauty products, highlighting opportunities for brands to incorporate ingredients that promote healthy skin, strengthen the skin barrier, and cater to sensitive skin.

 

 

Case Study: The Ordinary’s Skin Barrier "Seal" Concept

 

The Ordinary, a leading brand in functional beauty products, uses ingredients as a unique selling point. Since then, other skincare brands have adopted this approach. The brand has developed a three-step skincare regimen: Prepare, Treat, and Seal. The “Seal” step, in particular, is noteworthy as it focuses on supporting the skin barrier and specifically addresses issues related to a compromised skin barrier. Additionally, the brand utilizes a combination of ingredients similar to natural moisturizing factors.

 

Ingredient Trends: Plant Extracts

The top ten emerging plant-based ingredients mainly enhance skin hydration, brighten complexion, and have anti-aging effects. Thai consumers generally perceive these natural ingredients as both effective and safe for skincare.

 

 

Ingredient Trends: Fermentation and Protein Ingredients

 

The percentage change in ingredients in beauty products is calculated by comparing the proportion of each ingredient between September 2019–August 2020 and September 2023–August 2024.

Lactobacillus shows strong growth in both fermented ingredients and protein extracts. This probiotic, derived from Lactobacillus fermentation, is highly popular in skincare products. When applied to the skin, it exhibits strong soothing properties and enhances the skin’s defense against external aggressors. As probiotics rise in the skincare field, it is predicted that microbial ingredients and their by-products will continue to grow.

 

 

Ingredient Spotlight: Probiotics

 

Probiotics are gaining significant recognition among Thai consumers

Thailand: Functional Beauty Ingredients Awareness, 2020-2024

 

Driven by rising awareness of skin health, probiotics are becoming increasingly popular among Thai consumers.

 

 

Probiotics' skin benefits are well-documented in Thailand

 

Positive Sentiment on Social Media About Probiotics

In Thailand, gut beauty is increasingly being seen as part of a holistic approach to beauty and health. Thai consumers link skin health with overall body health, including gut health, aligning with Euromonitor's overall health trend. While probiotics are typically associated with gut health, insights from social media reveal that more people are becoming aware of the skin health benefits of probiotics and view them positively. This suggests that Thai consumers are embracing probiotics not only for gut health but also because of their potential skin benefits.

 

Although probiotic-based beauty products are well-established in the West, they are still relatively niche in Thailand

Europe leads the market for probiotic beauty products, while in Thailand, probiotic beauty remains a niche market but shows growth potential.

 

 

Beauty Products with Probiotics Enhance Skin Barrier

 

Strengthening the Skin Barrier

The NueCo Barrier Culture Cleanser is designed to strengthen and protect the skin barrier by incorporating a blend of prebiotics and postbiotics.

Skin Elasticity

BRTC’s first lotion is a strengthening yet gentle treatment designed to improve skin elasticity and moisture balance. It features the patented Probiome Complex, which helps protect and reinforce the skin barrier.

Anti-Aging

BioHeal BOH Probioderm Collagen Restructuring Cream is part of an anti-aging skincare line focused on firming and strengthening the skin barrier. It utilizes a patented probiotic complex to enhance skin elasticity and structure.

 

Thailand is a result-oriented beauty market.

 

Mature Ingredients Earn Trust Through Effectiveness

Social media data shows that discussions on skincare ingredients mainly focus on well-known ingredients such as Vitamin C and Retinol, trusted for their effectiveness.

 

 

Interest in Retinol Is Rapidly Growing, Reinforcing Its Popularity

 

The data shows that the search interest for this region and time is relative to the highest point on the chart. 100 represents the peak popularity of the word, 50 represents a halving of popularity, and 0 represents insufficient data.

Search interest data shows that Retinol has quickly become a key ingredient in skincare products due to its anti-aging benefits. Thai consumers, particularly Millennials, are enthusiastic users of Retinol, with 64% incorporating it into their daily routine. While the benefits of Retinol are well-known, current research focuses on improving its effectiveness and safety for all skin types. This development highlights how technology can enhance the appeal of a familiar ingredient.

 

International Brands Use Advanced Technology to Enhance Ingredients like Retinol

Brands continue to enhance Retinol and its derivatives using advanced technologies to make them more effective and safer.

 

Encapsulation Technology

Encapsulation technology addresses the irritation and instability of retinol by gradually releasing the ingredient into the skin. This slow-release method minimizes irritation while enhancing stability. One example is the PCA Retinol Treatment for Sensitive Skin, which utilizes OmniSome technology to layer and deliver retinol deep into the skin.

Powder-to-Serum Technology

This innovative format addresses stability concerns by keeping retinol in a stable powder form until it is mixed into the serum. Kiehl’s Dermatologist Solutions Retinol Fast Release Wrinkle-Reducing Night Serum utilizes this technology to deliver a highly concentrated formula, optimizing absorption and efficacy.

Retinol Derivatives

Compared to traditional retinol, retinol derivatives like HPR are gaining popularity for their enhanced safety and stability. HPR is effective yet less irritating, making it a preferred ingredient in formulations such as Dr.G's Retinol Ampoule, which is claimed to gently address 12 signs of aging.

 

Local Brands Emphasize Efficacy While Promoting Ingredient Transparency

 

Ingredient transparency is an increasingly global trend. Consumers not only want to know what ingredients are in their beauty products but also their concentrations. This approach is driving ethical practices globally. In Thailand, local brands are emphasizing the percentage of active ingredients to highlight their efficacy and build consumer trust.

 

Key Takeaways

01  Increasing Focus on Skin Health Ingredients

In Thailand, beauty products are focusing on healthy skin, particularly moisturizing and brightening products. Key ingredients like Hyaluronic Acid and Ceramides are used to strengthen the skin barrier, reflecting the demand for products that support long-term skin health.

 

02 Probiotics: Ingredients Beneficial for Skin Health

While probiotics have been used in beauty products for some time, they remain a niche market in Thailand. However, Thai consumers’ growing awareness of probiotics points to a clear opportunity for beauty brands to enter this space.

 

03 Technological Backing for Well-Known Ingredients

Classic ingredients like Vitamin C and Retinol have long been trusted by consumers for their effectiveness. However, their lack of novelty may diminish consumer interest. To address this, global beauty brands are using innovation to enhance their effectiveness, while Thai brands focus on ingredient transparency and influencer marketing to improve consumer understanding.

 

 

 

This article references insights "Understanding Consumer Trends and Exploring Raw Material Opportunities in Southeast Asia", published by Mintel on February 2025.