Vietnam Beauty and Personal Care Products
The beauty and personal care product market in Vietnam presents a substantial opportunity for U.S. exporters. According to Statista, the market is projected to expand from $2.4 billion in 2023 to $2.7 billion in 2027, presenting a compound annual growth rate (CAGR) of 3.3%.
Foreign brands make up over 90% of the cosmetics market in Vietnam. Korean brands have the highest share at 30%, followed by brands from Europe (23%), Japan (17%), Thailand (13%), and the United States (10%). Local Vietnamese brands usually focus on affordable, low-end cosmetics.
Skincare products are in-demand, with more than 60% of Vietnamese consumers reportedly using them daily. A 2022 market research study of Vietnamese women aged 25 to 45 by Q&Me found that 95% use skincare products regularly, spending an average of 740,000 VND (US$30) monthly. The study reported most purchases were made through brand stores, health and beauty chain stores, and e-commerce platforms. A 2023 Statista survey of Vietnamese consumers aged 18 and up showed that the most popular personal care products included facial cleansers (49.1% of respondents), cologne and perfume (41.2%), antiperspirant products (31.8%), sunscreen (31.4%), moisturizers (25%), facial cream (20.9%), and facial masks (19.5%).
Long-term trends driving growth in the sector include increased financial independence for working-aged women, greater interest in natural and organic products among young consumers, and heightened attention to grooming trends by men. Growth in disposable income levels coupled with the construction of new shopping malls and department stores have created opportunities for global brands to market directly to affluent customers. More and more consumers are shopping for beauty products online to access a wider range of brands and products. The beauty industry remains the top revenue generator in e-commerce, according to Metric’s e-commerce reporting data.
U.S. products have positive market perception in Vietnam, being viewed as high quality, with strong standards around being natural, organic, vegan, and animal testing free. However, higher price points for U.S. products can be a competitive challenge in this price-sensitive market, and a strong local partner is essential to market product benefits to entice consumers to pay a higher price. Local distributors interviewed by the U.S. Commercial Service in Vietnam say there are several products from organic cosmetics to cleansing and first aid items they are looking to add to their lineup in the near future. U.S. suppliers in the cosmetics and personal care sectors should contact us to learn more!
To connect with these opportunities, contact the U.S. Commercial Service in Vietnam: Thao Nguyen (Thao.Nguyen@trade.gov) and Ngan Thai (Ngan.Thai@trade.gov).