Vietnam skin care products market forecast to reach USD1,922.4 million

The Vietnam skin care products market size was valued at $854.3 million in 2019, and is projected to reach $1,922.4 million by 2027, registering a CAGR of 11.7% from 2021 to 2027, according to a report from Allied Market Research.

International brands such as L‘Oreal, Estée Lauder, Unilever, and Colgate-Palmolive make up a significant share of the skin care products market, as domestic firms remain weak in terms of innovation, packaging, marketing, and promotion. Thus, many cosmetics brands from South Korea and Japan are focusing on strengthening their foothold in Vietnam. Vietnam’s young, tech-savvy population is keen to try new products, which further contributes toward the expansion of concept stores.

Thus, to optimise conversion rates, fashion retailers consider the omnichannel model—an approach that provides an integrated shopping experience to customers—to extend their online and offline transactions.

With rapid increase in the middle-class population in Southeast Asia, Vietnam has been experiencing notable growth in its retail sector. This Vietnam skin care products market trend is anticipated to continue in near the future, owing to presence of relatively young population demographics. Low income consumers are witnessing increase in their spending power, which is anticipated to impact their purchasing preferences with regard to cosmetics products. Such consumers were increasingly drawn to more modern products, often offering added value features.

Over 400 foreign cosmetic businesses account for 90% of the Vietnamese market share. Anti-aging products are widely in demand (Photo: Viktoria Puke I Dreamstime.com)

Moreover, the expansion of digital retail channels in Vietnam is one of the key trends expected to contribute toward the growth of the market. Despite rise in penetration of digital channels, physical channels continue to dominate the retail sector and is expected to continue this trend during the Vietnam skin care products market forecast period.

The desire for youthful appearance among both men and women has boosted growth of the skin care products industry. In addition, rapidly aging demographics has led to a surge in demand for anti-aging products to prevent wrinkles, age spots, dry skin, and uneven skin tone, thereby augmenting the Vietnam skin care products market growth.

According to a report from the Society of Cosmetics of Ho Chi Minh City Foreign, cosmetic brands have been dominating the market in Vietnam with over 400 foreign cosmetic businesses running currently, accounting for 90% of the Vietnamese market share. Among the 400 foreign cosmetic businesses, Korean brands garner the highest share of 30%, followed by brands from European countries (23%), Japan (17%), Thailand (13%), the U.S. (10%), and other countries (7%).

The major players operating in the Vietnam skin care products are the L'Oréal Group, the Procter & Gamble Company, Unilever Vietnam, Estee Lauder Companies Inc., Shiseido Company Limited, and Avon Products Inc. The local companies include Dai Viet Huong Company Limited and Saigon Cosmetics Corporation.

Access the report from Allied Market Research