Today everybody wants to look good, including people in Vietnam. Many of them are currently investing in products that can make their appearance better such as for cosmetics and other personal care products. This emerging trend in turn fuels the demand for Vietnam cosmetic market.
According to a prominent market research firm, GMI Research, there would be substantial growth in Vietnam cosmetic market size in the years ahead. This rapid development is due to the growing demand for cosmetic and skincare products among the population, coupled with the need to sustain an attractive and youthful look.
Why is It on the Rise?
There are several factors that contribute to this emerging trend in Vietnam.
- Rising incomes
The rising incomes among the population can drive the demand for cosmetics. As more people have more money to spend, they can purchase tertiary products including cosmetics and personal care items. Their basic necessities are already met so they should not have to worry about spending more money on something outside their fundamental needs.
- Growing awareness regarding beauty and appearance
There is also a rising recognition among the population regarding the importance of beauty and good appearance. That also involves the expansion of the men’s segment. There is a rising expansion of products for male grooming in the last years. Instead of exclusively focus on women, there is a shifting focus on men. Many men in Vietnam are increasingly involve grooming and self-care practices in their lives. As many superstars and influencers around the world promote the importance of self-care for men, many of them are imitating the grooming habits and purchase self-care products made specifically for men.
- Internet and e-commerce penetration
As internet is increasingly penetrate many areas in Vietnam both urban and rural regions, more people are influenced by social media influencers regarding the needs to look pretty and good. Western culture may also have a part in this trend.
The growing number of people who own smartphones and the shifting preference towards online shopping and e-commerce can also fuel this emerging trend. Most people in Vietnam are now using smartphones. Coupled with the pandemic effects, there has been a shifting consumer habit who prefers to purchase things online through e-commerce platforms or websites. This development and digitalization have significantly impacted the cosmetics business in the country.
Because of its affordability and ease to purchase, the customer base for these cosmetic companies is increasingly growing.
- Demand for organic products
In the country, there is also a growing demand for organic products as many people are increasingly concerned about the impact of the products they purchased. As people have more money, they are increasingly prioritizing the quality of the products and opt for products with less chemicals which can give negative effects for them.
- Government regulations
The government regulations can also further foster the growth of Vietnam cosmetic market. Government regulations mandate that all cosmetics, whether locally manufactured or imported, must conduct testing and acquire licenses before distribution. Maintaining accurate labeling is critical for enhancing customer trust in cosmetics, necessitating adherence to prescribed labeling rules during production.
