Vietnam Cosmetics Market

Vietnam Cosmetics Market Overview:

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.

Growth Driver

Rising popularity for online shopping products

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.

Rapid Pace of Urbanization and surge in income level

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.

Presence of foreign brand cosmetics

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.

Product Type Segmental Analysis

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.

Distribution Channel Segmental Analysis

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.

Gender Segmental Analysis

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.

Competitor Analysis

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.

Export-Import

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%.

Key Stakeholders

• Market research and consulting firms
• Industry associations
• Vietnam Cosmetic Manufacturing firms & service providers
• Research organizations and consulting companies
• Vietnam Cosmetic distributors
• Organizations, associations, and alliances related to Vietnam Cosmetic.
• Regulatory bodies

Objective of the Research

• Market Modelling Market modelling starts with identifying a target market where historical data exists A Market can include prediction problems, economic factors, analysing of customer behaviour and identifying new patterns from past events, which helps our client to a have deep dive into the market.
• Product Analysis Product analysis involves steps such as examining product features, costs, availability, quality and other aspects Product analysis is conducted to understand potential buyers and measure competition in the market.
• Market Trend and Economic Factors Analysis This analysis helps in assessing potential changes to an economy’s inflation rate, taxes, interest rates, exchange rates, trading regulations, and excise duties that can or have major effect on the target market.
• Market Segmental Analysis Segmental analysis defines in depth scenario of the target market by the process of grouping consumers into naturally existing created segments of consumers who share similar product preferences or characteristics
• Geographical Mapping Geographical mapping approach helps our clients to understand national or international markets because different consumers in different regions have different needs, wants, and cultural characteristics that can be specifically targeted.

Market Modelling

By Product Type

• Hair Care
• Skin Care
• Bath and Shower Products
• Makeup & Color Cosmetics Products
• Fragrances & Deodorants

By Distribution Channel

• Beauty Parlors/Salons
• Multi Branded Retail Stores
• Online Channels
• Supermarkets/Hypermarkets
• Exclusive Retail Store
• Others

By Gender

• Men
• Women

Vietnam Cosmetics Market

Report Content

1. Research Strategic Development
   • Market Modelling
   • Product Analysis
   • Market Trend and Economic Factors Analysis
   • Market Segmental Analysis
   • Geographical Mapping
2. Research Methodology
   • Identification of Target Market
   • Data Acquisition
   • Refining of Data/ Data Transformations
   • Data Validation through Primary Techniques
   • Exploratory Data Analysis
   • Graphical Techniques/Analysis
   • Quantitative Techniques/Analysis
   • Visual Result/Presentation
3. Executive Summary
4. Market Insights
   • Supply Chain Analysis
   • Economic Factor Analysis
     • Drivers
     • Trends
     • Opportunities
     • Challenges
   • Technological Landscape
   • Competitors & Product Analysis
   • Policy & Regulatory Framework
   • Company market share analysis, 2018
   • Porter’s Five forces analysis
   • New Investment Analysis
   • PESTEL Analysis
5. Vietnam Cosmetics Market Overview
   • Vietnam Cosmetics Market Size & Forecast, 2016-2027
     • Demand
       • By Value (USD Million)
     • Consumption
       • By Volume (Million Units)
     • Supply/Production
       • By Volume (Million Units)
     • Vietnam Cosmetics Market Share & Forecast,2016-2027
       • By Product Types
         • Hair Care
         • Skin Care
         • Bath and Shower Products
         • Makeup & Color Cosmetics Products
         • Fragrances & Deodorants
       • By Distribution Channel
         • Beauty Parlors/Salons
         • Multi Branded Retail Stores
         • Online Channels
         • Supermarkets/Hypermarkets
         • Exclusive Retail Store
         • Others (Drug Stores, General department stores etc.)
       • By Gender
         • Male
         • Women
       • By Region
         • North Vietnam
         • Central Vietnam
         • South Vietnam

6. Competitor Analysis
   • Company Description
   • Financial Analysis
   • Key Products
   • Key Management Personnel
   • Contact Address
   • SWOT Analysis
   • Company Profiles
     • O-Hui
     • Pond’s
     • Nivea
     • Shiseido Company, Limited
     • The Face Shop
     • Maybelline
     • Rohto
     • Innisfree
     • 3CE
     • MAC Cosmetics
     • Chanel S.A
     • Other Prominent Players

*Financial Details Not Be Captured in Case of Unlisted Companies

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