Vietnam Cosmetics Market expected to garner a significant growth over the forecast period, 2019-2027. With the aging population and rapid urbanization across Vietnam will foster Vietnam Cosmetics Market in the projected period. Additionally, the increasing number of the middle class in Vietnam, domestic cosmetics companies need to pay attention to and open up high-end markets. Also, the surge in cosmetic spending is the resurgence of natural products, along with changing consumers’ preferences towards products made with natural ingredients is estimated to fuel the Vietnam cosmetic market.
Vietnamese government plans to increase the current per capita GDP from the US $ 2,500 to the US $ 10,000 by 2030, and the annual growth rate will reach 12%. There are more than 100 makeup brands in the Vietnamese market, and 90% of cosmetics on the market imported from abroad. Moreover, the rising consumer awareness towards natural and organic cosmetics, coupled with the upsurge in income levels in Vietnam, will boom the Vietnam cosmetic market.
Vietnam’s Internet users were increasing remarkably as in 2017, 53% of the Vietnamese population was using the internet. As Vietnam’s economy grows, more internet users expected to grow in the next few years. In 2023, this population projected to reach 75%. The most popular online shopping products are clothing, shoes, and cosmetics, accounting for 62% of the total goods sold online. The continuous advancement of urbanization, more and more rural people are migrating to cities, Vietnam’s cosmetics consumer group has rapidly increased, and the entire cosmetics market has also expanded rapidly.
The Vietnamese consumer market is influencing by the aging population, an increase in the number of the middle class, and rapid urbanization. It is estimated by 2030, Vietnam’s purchasing power will grow by an average of 5% per year. In 2017, 34% of households with per capita disposable income in the US $ 5,000 to $ 15,000 accounted for 34% and will grow to 49% by 2030. With the increase in the number of the middle class in Vietnam, consumption in food, housing, education, and other fields is also increasing. They are very price-sensitive and are willing to buy products with a good brand image. By 2030, Vietnam will be the third-largest consumer market in Southeast Asia. In particular, urban consumers expected to reach 46 million. Urban consumers have higher purchasing power and greater demand for consumer goods and services.
Foreign brand cosmetics flood the entire Vietnamese market and can be found everywhere in high-end shopping malls, cosmetics stores, and supermarkets. Vietnam’s domestic cosmetics account for only 10% of the market share, mainly for low-income people and rural consumers. A vast distribution network, huge advertising, and new product innovations are the three major reasons why foreign cosmetics are gaining popularity in the Vietnamese market. Besides, the Vietnamese middle-income population is proliferating, and they prefer high-quality cosmetics, so foreign brands are gaining market preference.
Based on Product Type, the Vietnam Cosmetics Market categorized into Hair Care, Skin Care, Bath and Shower Products, Makeup & Color Cosmetics Products, Fragrances & Deodorants. The Skin Care and hair care segment expected to dominate the market owing to higher living standards, a gradual surge in the average income, and the strong development of social networks. The Skin Care and hair care includes skin-care creams, lipsticks, eye and facial makeup, and colored contact lenses, and hair products are hair colors, hair sprays, and gels.
Based on the distribution channel, the Vietnam Cosmetics Market classified into Beauty Parlors/Salons, Multi Branded Retail Stores, Online Channels, Supermarkets/Hypermarkets, Exclusive Retail Store, and Others. The online channel segment projected to exhibit maximum revenue due to the expansion of several e-commerce websites. Also, the rising of Vietnam’s Internet population along with the continuous advancement of urbanization, more and more rural people are migrating to cities.
Based on gender, the Vietnam Cosmetics Market bifurcated into Male and Female. The male segment will lead the market on account of Male consumers who have become more aware of the appearance and professional look. Additionally, social etiquette, aesthetic standards, and higher disposable income are favoring the male segment market.
Companies such as O-Hui, Pond’s, Nivea, Shiseido Company, Limited, The Face Shop, Maybelline, Rohto, Innisfree, 3CE, MAC Cosmetics, Chanel S.A are the key players in the Vietnam Cosmetics Market.
There are more than 400 cosmetics companies in Vietnam, of which about 100 foreign brands account for 90% of the local market. Popular domestic brands such as Saigon Cosmetic, Thorakao, and Lan Hao are mainly engaged in low-cost cosmetics and export to neighboring Asian markets. At present, overseas brands account for 90% of the Vietnamese beauty market, and South Korea leads the way among Asian suppliers. Korean cosmetics account for the largest share of imported cosmetics sold in Vietnam, reaching 30%. The EU ranks second with a market share of 23%, followed by Japan (17%), Thailand (13%), and the United States (10%), with other countries accounting for a total of 7%.
By Product Type
By Distribution Channel