Outlook bright for Thai cosmetics, skincare products

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Outlook bright for Thai cosmetics, skincare products
Business

Outlook bright for Thai cosmetics, skincare products

published : 13 May 2022 at 04:44

newspaper section: Business

writer: Pitsinee Jitpleecheep

Kesmanee Lertkitcha, chairman of Cluster Health & Beauty at The Federation of Thai Industries (FTI), forecasts Thai beauty industry to grow for the second consecutive year after first ever hiccup in 2020 due to the pandemic.

Thailand's beauty industry is expected to grow by almost 4% this year driven by hygiene products as well as the skincare category, particularly children's products and men's grooming products driven by the popularity of Korean TV series.

Kesmanee Lertkitcha, chairman of the health and beauty cluster of the Federation of Thai Industries (FTI), said she is optimistic that the industry will maintain its growth momentum this year after recovering to 3% growth in 2021, generating sales of 320 billion baht.

Thailand's beauty industry grew by 6.5% in 2019, ahead of the average growth of the global beauty market which stood at 5.5%. The market fell by 0.94% for the first time in 2020 due to the onset of the Covid-19 pandemic.

Mrs Kesmanee attributed 2021's growth largely to Thai manufacturers' successful business strategy adjustment, shifting to promote hygiene products that had strong demand during the pandemic and those aimed to address problems related to rising air pollution.

Of the total 320 billion baht of market value in 2021, skincare products accounted for the majority (39%), followed by haircare (15%), hygiene (12%), oral cosmetics (12%), make-up (11%), men's grooming (7%) and fragrances (4%), with "others" accounting for the remainder.

Mrs Kesmanee said this year's growth would be propelled by the skincare category, particularly in terms of children's products and men's grooming products, driven by the popularity of Korean TV series.

"The Korean series not only promote Korean food in Thailand but also encourage Thai men to use skincare products," she said. "The Korean government has set a good example to promote their products via its TV series globally. The Thai government should now follow this successful strategy to promote the Thai beauty industry, not only the tourism business because beauty products also generate huge income to our country."

According to Mrs Kesmanee, Thailand is a country that offers potential in terms of health and beauty investment, but manufacturers have to invest more in new technology and capitalise on the market trends of products and packaging which tend to be green and environmentally-friendly.

At the same time, she said Thai beauty manufacturers should intensify their business expansion into overseas markets.

At present, Asean is the most important market for exporters of Thai beauty products, accounting for 43% of the total, followed by South Korea (36%), Japan (16.3%), Australia and China (7.7%) with the remainder being other markets.

"Currently, Thailand has the biggest cosmetics industry in Southeast Asia, and it is the gateway to the Asean market. It is recognised as the hub for the beauty business in this region,'' she said.

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