Thaliand’s skincare sector is set to grow from US$2.5bn in 2019 to US$3.6bn by 2024, pushed on by domestic economic and tourism growth, and an increase in men’s skincare sales.
Over the course of the five-year period, the skincare market in the Thailand is predicted to grow at a compound annual growth rate (CAGR) of 6.2%, according to data and analytics company GlobalData.
By category, the facial category was the largest segment in Thailand, recording value sales of US$2.11bn in 2019.
However, looking ahead, the hand care category is projected to witness the fastest value sales at a CAGR of 6.29% to 2024, followed by facial care and make-up remover categories, recording CAGRs of 6.28% and 6.2%, respectively.
Per capita, skincare expenditure in Thailand stood at US$36.5 in 2019, which was higher than the global per capita expenditure of US$19.6, followed by regional per capita expenditure, which stood at US$17.6 in the same year.
“Strong economic growth, rise of the middle class, growing tourism, changing consumer inclinations and manufacturers’ emphasis on developing products and marketing products targeting men have all contributed to sizable growth in the sector,” said Anchal Bisht, Consumer Analyst at GlobalData.
By brand, Nivea — owned by Beiersdorf — was the most popular brand in the Thai skincare sector in 2019, with Unilever and L’Oreal also proving popular among Thai shoppers. More than one third of Thais purchased their skincare from hypermarkets and supermarkets in 2019, with the next largest distribution channel being health and beauty stores.
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“Consumers’ rising penchant for high quality products using naturally sourced ingredients that promote healthy skin is expected to drive further innovation in the sector resulting in elevated adoption. Increasing brand awareness among consumers and rising expenditure on premium beauty products, while expanding target market with affordable products, will fuel growth of Thai skincare sector through to 2024,” added Anchal.