Vietnam Skin Care Market Assessment, By Category, By Product Type, By Cohort Group, By Gender, By End-user, By Distribution Channel, By Region, Opportunities, and Forecast, 2016-2030F

The Vietnam Skin Care Market is a rapidly growing and highly competitive industry. It was estimated at USD 852.18 million in 2022 and is anticipated to reach USD 1808.21 million by 2030. The market is projected to witness a CAGR of 9.86% during the forecast period 2023-2030. Vietnamese consumers have higher expectations for skin and personal care items as they become more educated and sophisticated in their demands. They are looking for ways to use fewer products while still getting the best skincare results. Even before and after COVID-19, cleaning products remain the consumer's top priority in their daily routine.

However, as per the seasons, customers' preferences for skin care products also tend to change. The changing seasonal needs of consumers can be tapped into through occasion-based marketing, mainly through social media. From there, it aids in bringing the brand closer to customers by painting a clear picture of the season and time when customers should use the brand's products and providing them with solid justifications for doing so. Along with putting communication and messages into action, brands will benefit from listening to customer feedback and monitoring competitors on social media to make quicker marketing decisions. In the future, brands will be able to capitalize on a new group of influencers - beauty followers - by better planning the use of these influencers .

The influence of Korean beauty trends has been significant in Vietnam. K-beauty products, known for their innovative formulations and extensive skincare routines, have gained popularity among Vietnamese consumers. Korean skincare brands and their beauty rituals have influenced local preferences and have become a prominent segment of the market. For instance, on April 21, 2023, a food delivery company from South Korea, BAEMIN unveiled Lazy Bee, its first beauty brand, to offer customers the best beauty solutions in terms of quality, security, and convenience to the Vietnamese. The products are developed, tested, and produced in South Korea using cutting-edge technologies and practises that adhere to international standards.

Increasing Trend of Minimalism

The minimalist trend, which encourages shoppers to make more thoughtful purchases, also has an impact on how consumers set expectations for beauty products. New terms and keywords related to beauty are created as this trend takes off. Trending terms include "surong surong" (Vietnamese slang for being light) and "o d?" (Vietnamese slang for being overdone), as well as words like #skinimalism, #nomakeupmakeuplook, #MarieKondoSkincare, and #GlassSkinMakeup. Because there is more widespread knowledge and understanding of specific product ingredients and how they can help treat skin problems, beauty consumers are now looking for very specialised and specific ingredients. Growing trend of active ingredients is also worth noticing. Keeping it in consideration, in June 2022, the local skin care company, Skinetiq, officially launched an anti-aging skincare brand, Candid, with active ingredients. It an international standard skincare solution at a reasonable price with an exclusive formula board and encapsulated technology for Retinol 1% and Retinal 0.5%. Candid helps users experience the skincare process with not only maximum anti-aging effect but also minimum irritation and peeling of the skin.

Growing Demand for Easy-to-use/Home Spa Products

Customers in Vietnam are bringing the spa into their homes. After COVID-19, people are more inclined to spend time at home, particularly if it is available at a lower cost, which includes receiving spa or beauty treatments. Vietnamese consumers are looking for products that not only deliver what they promise but also enable them to simulate the experience of a beauty salon at home. Within the beauty industry, the volume of conversations about home spas is quickly rising. This provides brands with even more opportunities to develop and market products in order to meet such demands. Moisturising, anti-bacterial, and skin sensorial benefits are some of the primary advantages beauty consumers look for in their home salon collection. Beauty brands concentrate on creating products that meet these criteria and/or create appropriate campaigns given the insights.

Government Regulations

The Vietnam Drug Administration oversees the registration of cosmetic products in that country . As per the government regulations, all products, whether they are imported or domestically produced, must be tested, and obtain licences for the circulation of skin care products, also known as business licences. Cosmetic products must ensure that labelling regulations are followed in addition to submitting an application for a business licence because this is a crucial step in fostering consumer confidence in the products.

According to Article 41 on cosmetic quality control, the management department will work in coordination with the Ministry of Health inspectors, the testing institute, and the health departments to implement, monitor after-sales services for cosmetics produced domestically and imported that are distributed in the localities, and handle quality issues of products when conducting inspection for product quality. The inspection includes examining product labels, information documents regarding those products in accordance with ASEAN regulations, advertisements for cosmetics, and determining whether or not those facilities meet the requirements. According to the ASEAN after-sales supervision guideline, the type of products, places of origin, brands, trademarks, and formulas of product compositions will determine the priority of cosmetic after-sales supervision.

Changing Preferences of Gen Z Leading to a Demand for Organic and Herbal Products

The mindset of local consumers is evolving, and Generation Z in particular is becoming increasingly concerned about the quality of personal care products. Therefore, the beauty market is likely to experience tremendous growth for organic and herbal products. Organic and herbal ingredients are reasonably priced in Vietnam and can be used in cosmetic products. One such ingredient that is widely available in the Mekong Delta region of Vietnam and is a crucial component of many beauty products is coconut. For companies looking to create organic products domestically, Vietnam is home to a wide variety of organic ingredients. Major players are already making the change. Yet the difficulties persist. Gen Z favours brands that are transparent and authentic. They appreciate skincare brands that prioritize ethical sourcing, transparent labelling, and cruelty-free practices. Organic and herbal skincare products often align with these values, as they are perceived as more natural, sustainable, and ethical compared to conventional alternatives.

Impact of COVID-19

Vietnamese behaviour has changed significantly as a result of "Stay Home" because of COVID-19, with personal care being one of the most significant changes. People now behave and pay more attention to these segments because they go out less and interact with fewer people. Prior to covid-19, around 59% of the population used to spend approximately USD 4-USD 14 monthly on skin care. However, there was a shift in consumer behaviour after the pandemic. But still, skin care industry witnessed consciousness among the people regarding their skin. 57% of the population maintained its skin care routine and it was important and they had more time for self-care. With the emphasis on maintaining personal hygiene during the pandemic, there has been a surge in demand for skincare products such as hand sanitizers, soaps, and cleansers. These products witnessed increased sales as people became more conscious about maintaining clean and healthy skin.

Key Players Landscape and Outlook

The skincare market in Vietnam is highly competitive, with both local and international players contesting for market share. Some of the key players in the Vietnam skincare market are Unilever Vietnam International Co., Ltd., Sai Gon Green Consulting Services Trade Company Limited (Nau Nau), Kao Vietnam Co., Ltd., and YLV Company Limited (Skinna). These are just a few examples of the key players in the Vietnamese skincare market. It's important to note that the landscape is dynamic, with new brands entering the market and existing players constantly innovating and expanding their offerings. The competition is fierce, and brands need to adapt to changing consumer preferences and leverage effective marketing strategies to stay competitive in the Vietnamese skincare market. Recently, in November 2022, on the occasion of its 21st anniversary, Hoa Linh Pharmaceutical established a "cosmetic pharmaceutical research centre" to research Vietnamese people's needs, behaviours, and practices regarding using cosmetics and taking care of their skin.