Report Overview

Vietnam Cosmetics Market – Industry Trends & Forecast Report, 2030

Vietnam Cosmetics Market size was estimated at USD 754.4 million in 2023. During the forecast period between 2024 and 2030, Vietnam Cosmetics Market size is projected to grow at a CAGR of 4.6% reaching a value of USD 1,029.6 million by 2030. Prominent drivers of the market include rising disposable incomes, increased consumer awareness about self-care and beauty, and a burgeoning population. As one of the fastest-growing economies, Vietnam has transitioned from a low-income to a middle-income country, contributing to a strong demand for cosmetics. The urbanization and growth of the workforce are further enhancing the market's appeal. With international brands targeting this lucrative market and domestic players seizing the opportunity to establish new brands. Also, the rise of digitalization has exposed Vietnamese consumers to Western beauty trends, fueling demand for diverse beauty products. This potential is underscored by South Korean food delivery service Baemin's entry into the market with its beauty line, Lazy Bee, indicating significant opportunities within Vietnam's Cosmetics Market landscape.

Cosmetics – Overview

The cosmetics market encompasses a wide range of beauty and personal care products designed to enhance appearance and promote personal hygiene. The market includes categories, such as skincare, makeup, haircare, fragrances, and toiletries, catering to diverse consumer needs. Driven by factors like increasing disposable incomes, growing awareness of self-care, and the influence of social media and digital marketing, the cosmetics industry has seen significant growth globally. Additionally, the rise of clean and sustainable beauty trends is shaping consumer preferences, leading to the development of innovative products. As a dynamic and evolving sector, the cosmetics market plays a crucial role in the broader beauty and wellness industry.

Vietnam Cosmetics Market

Growth Drivers

Increased Awareness about Beauty and Personal Hygiene

Growing awareness about beauty and personal hygiene is significantly propelling the expansion of Vietnam's Cosmetics Market. As living standards improve, consumers are shifting their focus from basic needs to prioritizing personal care and beauty products. The burgeoning middle class is increasingly investing in cosmetics, with women spending an average of VND 450,000 to VND 500,000 (USD 19 to USD 21) monthly on makeup and skincare. The heightened consciousness, largely influenced by social media and the popularity of the Korean beauty trend, is driving demand for a diverse range of beauty products. As a result, both domestic and international brands are seizing the opportunity to establish their presence, positioning Vietnam as an emerging market ripe for investment in personal care and cosmetics. Furthermore, the younger generation's inclination toward organic products and the growing financial independence of women, alongside increasing beauty awareness among men, further contribute to market expansion. In response, manufacturers are innovating with natural ingredients and attractive packaging, solidifying cosmetics as an essential aspect of daily life in Vietnam.

Rapid Urbanization

The migration of individuals from rural areas to cities is creating new opportunities for cosmetics brands to expand their sales and customer base. With increased population density in urban regions, cosmetics brands have a larger pool of potential customers. This demographic shift has led to rising sales and market growth, as city dwellers gain access to a wide array of domestic and international beauty brands. Major urban centers like Hanoi and Ho Chi Minh City are particularly influenced by global beauty trends, prompting consumers to seek products that reflect these standards. Additionally, urbanization has led to the development of modern retail infrastructure, such as malls and specialty beauty stores, making it easier for consumers to explore and purchase new cosmetics. Hence, expanding urban areas are expected to continue to boost the growth of Vietnam Cosmetics Market in the coming years as well.

Challenges

Sustainability and Ethical Considerations

Despite the growth potential, sustainability and ethical considerations pose significant challenges to the growth of Vietnam Cosmetics Market. Consumers are increasingly demanding environmentally friendly products and transparency in sourcing, which often leads to higher production costs for brands. Additionally, the prevalence of counterfeit and substandard products undermines consumer trust and complicates market dynamics. Many companies struggle to balance profitability with ethical practices, resulting in limited availability of sustainable options. This reluctance to fully embrace eco-friendly initiatives can hinder overall market expansion as consumers seek brands that align with their values regarding sustainability and ethical responsibility.

Impact of Escalating Geopolitical Tensions on Vietnam Cosmetics Market

Escalating geopolitical tensions among countries and spreading across regions could have a significant impact on the growth of Vietnam Cosmetics Market. These tensions create uncertainty, affecting supply chains and consumer behavior. Trade disputes and regulatory changes may lead to increased costs and delays in importing raw materials, impacting production efficiency. Additionally, consumers might become more cautious about spending amid economic instability, resulting in reduced demand for non-essential products like cosmetics. Brands must navigate these challenges by adapting their strategies, ensuring resilience in supply chains, and maintaining consumer trust to sustain growth in a volatile geopolitical landscape.

Vietnam Cosmetics Market

Segmental Coverage

Vietnam Cosmetics Market – By Category

On the basis of category, Vietnam Cosmetics Market is divided into Skin Care, Hair Care, Make-up, and Fragrances segments. The skin care segment holds the highest share in Vietnam Cosmetics Market by category, due to growing health consciousness among consumers. Vietnamese are increasingly attentive to product ingredients, seeking solutions for specific skin concerns such as acne, large pores, and dark circles. This shift presents significant opportunities for both established brands and new entrants. Generation Z, in particular, prioritizes quality and is leaning towards organic and herbal products. Major players like L’Oreal and Nivea are adapting to this trend by launching innovative, natural product lines. Local distributors are also actively seeking to expand their offerings with natural cosmetics, underscoring the strong demand for skin care solutions in the market.

Vietnam Cosmetics Market – By Gender

Based on gender, Vietnam Cosmetics Market is divided into Women, Men, and Unisex segments. The women segment holds the highest share in Vietnam Cosmetics Market by gender, reflecting a demographic structure where females make up a significant portion of the population. This group, particularly those aged 15 to 59, serves as the primary consumer of beauty products, driving substantial growth in the industry. The rising number of women using beauty products fuels this expansion, with skincare and makeup dominating the market. Additionally, the increasing demand for organic and natural products highlights women's evolving preferences, underscoring their pivotal role in shaping Vietnam's cosmetics landscape and influencing market trends.

Vietnam Cosmetics Market – By Distribution Channel

By distribution channel, Vietnam Cosmetics Market is divided into Hypermarkets/Supermarkets, Specialty Stores, and Online Sales Channels segments. The online sales channels segment holds the highest share in Vietnam Cosmetics Market by distribution channel. The growing population and rising incomes in Vietnam are contributing to an increase in smartphone users. Nearly half of the population owns a smartphone, and the pandemic has shifted consumer behavior toward online purchasing through company websites and e-commerce platforms. The expansion of e-commerce and the digitalization of society have significantly influenced the Vietnamese cosmetics industry. Online shopping has gained popularity due to its convenience, product variety, and competitive pricing. This is particularly beneficial in rural areas with limited access to physical stores, allowing both local and international cosmetics brands to reach a broader customer base effectively.

Competitive Landscape

Major players operating in Vietnam Cosmetics Market include L'Oréal Vietnam, Unilever Vietnam, Estée Lauder Vietnam, Beiersdorf, Procter & Gamble Vietnam, Shiseido Cosmetics Vietnam, Marico, and Chanel. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2023 - Meiyume, a leading global provider of beauty solutions, announced its expansion into the Vietnamese market, enabling local brands to enhance their products with science-driven insights. Meiyume offers rapid prototyping and innovative solutions, including packaging design and manufacturing across various categories.

• In April 2023 - South Korean food delivery service Baemin launched its cosmetics brand, Lazy Bee, in Vietnam. Developed in 2021, Lazy Bee was created with insights into Vietnamese skin needs and is produced in South Korea. The brand features two main product lines: skincare, including mineral spray and toner pads, and makeup, which includes cushions and lipstick.

Scope of the Report

By Category

• Skin care

• Hair care

• Make-up

• Fragrances

By Gender

• Women

• Men

• Unisex

By Distribution Channel

• Hypermarkets/Supermarkets

• Specialty Stores

• Online Sales Channels

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Vietnam Cosmetics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rise in urbanization
         2. Increased awareness of beauty and personal hygiene
         3. Expansion of e-commerce platforms offering convenient online buying
         4. Growing prevalence of social media platforms and influencers
      2. Restraints
         1. Sustainability and ethical considerations
         2. Significant increase in competition among market players
      3. Opportunities
         1. Growing demand for organic and natural cosmetic products
         2. Rising need for cosmetic skincare and products among the working population
         3. Increase in purchasing power of consumers
         4. Growing interest in grooming products and personal care among males
      4. Challenges
         1. Ensuring product quality and safety amid counterfeit products
         2. Adapting to evolving consumer preferences and beauty standards
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Vietnam Cosmetics Market Overview
   1. Market Category & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Category
         1. Skin care
         2. Hair care
         3. Make-up
         4. Fragrances
         5. Others
      2. By Gender
         1. Women
         2. Men
         3. Unisex
      3. By Distribution Channel
         1. Hypermarkets/Supermarkets
         2. Specialty Stores
         3. Online Sales Channels
         4. Other
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Cosmetics Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tensions on Vietnam Cosmetics Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. L'Oréal Vietnam
   2. Unilever Vietnam
   3. Estée Lauder Vietnam
   4. Beiersdorf
   5. Procter & Gamble Vietnam Ltd
   6. Shiseido Cosmetics Vietnam
   7. Marico
   8. Chanel
   9. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Vietnam Cosmetics Segmentation

Figure 2       Vietnam Cosmetics Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Vietnam Cosmetics Market Category, By Value (USD Million), 2019–2030

Figure 5       Vietnam Cosmetics Market Share, By Category, By Value, 2019–2030

Figure 6       Vietnam Cosmetics Market Share, By Gender, By Value, 2019–2030

Figure 7       Vietnam Cosmetics Market Share, By Distribution Channel, By Value, 2019–2030

List of Tables

Table 1        Vietnam Cosmetics Market Category, By Value (USD Million), 2019–2030

Table 2        Vietnam Cosmetics Market Share, By Category, By Value, 2019–2030

Table 3        Vietnam Cosmetics Market Share, By Gender, By Value, 2019–2030

Table 4        Vietnam Cosmetics Market Share, By Distribution Channel, By Value, 2019–2030

Table 5        L'Oréal Vietnam Company Overview

Table 6        L'Oréal Vietnam Financial Overview

Table 7        Unilever Vietnam Company Overview

Table 8        Unilever Vietnam Financial Overview

Table 9        Estée Lauder Vietnam Company Overview

Table 10      Estée Lauder Vietnam Financial Overview

Table 11      Beiersdorf Company Overview

Table 12      Beiersdorf Financial Overview

Table 13      Procter & Gamble Vietnam Ltd Company Overview

Table 14      Procter & Gamble Vietnam Ltd Financial Overview

Table 15      Shiseido Cosmetics Vietnam Company Overview

Table 16      Shiseido Cosmetics Vietnam Financial Overview

Table 17      Marico Company Overview

Table 18      Marico Financial Overview

Table 19      Chanel Company Overview

Table 20      Chanel Financial Overview