Vietnam’s Emerging Cosmetics Industry: Strong Potential for Growing Market

Vietnam’s cosmetics market is rather young, yet is one of the most dynamic in the region. As living standards in Vietnam grow, Vietnamese consumers are becoming more aware of personal care and beauty products besides satisfying basic needs. With a market value of up to US$ 2.3 billion in 2021, Vietnam Briefing analyses the current situation, opportunities, and challenges for businesses entering this industry.

 

Cosmetics products are big business in Vietnam. The industry is booming thanks to a large number of Vietnamese consumers investing in personal care and beauty products given higher living standards.


Vietnam has risen to a middle-income from a low-income country, with an increasing middle-income class who are allocating more of their income to cosmetics products. A middle-class female in Vietnam spends an average of VND 450,000 – VND 500,000 (US$19 – US$21) monthly on makeup and skincare.


Growing disposable income, evolving beauty standards, the spread of social media, and the Korean wave all contribute to the soaring demand for beauty products in Vietnam.


South Korea is renowned for its skincare and makeup regime. Korean idols and influencers add fuel to self-care trends in Vietnam through social media, campaigns, advertisements, and beauty blogs. Moreover, greater financial independence for employed women in Vietnam has driven their demand for beauty care while evolving beauty standards have led males to pay more attention to grooming.


Since 2018, the percentage of women in Vietnam using cosmetics has climbed up from 76 percent to 86 percent. In the next decade, Vietnam’s cosmetics market is projected to witness a growth of 15-20 percent annually.


Vietnam’s skin care product market size totalled in value at US$850 million in 2019 and is anticipated to reach US$1.9 billion by 2027, indicating a CAGR of 11.7 percent during the 2021-2027 period.


Overview of the cosmetics market

Vietnam is a hotspot for foreign cosmetics brands with up to 93 percent of personal care products imported. South Korea is the dominant cosmetics exporter to Vietnam, followed by Europe, Japan, Thailand, and the US.

​Country

Cosmetics import market share

South Korea

30%

The EU

23%

Japan

17%

Thailand

13%