Skincare industry on the cusp of rapid growth

- Thursday, 06/06/2024, 09:14

With its large young population and rising disposable incomes, Vietnam is an attractive market for manufacturers and distributors of skincare products, according to industry insiders.

Skincare industry on the cusp of rapid growth -0
Skincare products. Photo courtesy of The Washington Post.

According to a report by Inkwood Research, Vietnam's skincare industry is expected to be worth over 1.3 billion USD by 2028, representing a significant 6.47 per cent compounded annual growth rate from 2022 onwards.

The growth is attributed to rising demand for sensitive skin products and heightened focus on personal health among consumers.

In anticipation of this growth, both local and global enterprises are strategically planning cooperative efforts and long-term initiatives.

This year LG Vina has entered into a strategic partnership with DKSH, a leading market expansion services provider, to enhance the market presence of its high-end derma-cosmetic line, Physiogel, which was acquired by the LG Household and Healthcare Group in 2020.

Kim Kyung Hyo, director of home care and daily beauty department at LG Vina Group, extolled the potential of the Vietnamese skincare market, saying people in the country had become more conscious of their looks and embrace new beauty trends quickly.

"Vietnam has a large population, with a high proportion of young people compared to other countries in the region, and skincare products have witnessed significant adoption among these consumers," he said.

"We believe DKSH is the ideal partner to expand our market reach with Physiogel. With its extensive network of local partners and profound market insights, DKSH is poised to expedite our growth in the Vietnamese market.

“Given Physiogel's status as a beloved cosmetic brand in the Republic of Korea, we are confident that our collaboration with DKSH will elevate our brand to similar acclaim in Vietnam."

He expects sales of Physiogel products to reach 300 billion VND (11.7 million USD) in the next five years through the partnership with DKSH.

An Khang, one of the top three pharmacy chains in Vietnam, and DKSH have partnered to provide better access to cosmetic brands to Vietnamese consumers.

Phan Ngoc Dinh Lang, product director at An Khang, said amid the growing trend of proactive healthcare in the country, her company had seen increased interest in consumer health product categories.

DKSH supplies An Khang with a diverse range of products spanning nutrition, derma-cosmetics, consumer health, and consumer goods.

Skincare products have emerged as a promising segment in An Khang's product portfolio.

"DKSH serves as a strategic partner for various international healthcare brands. This collaboration empowers us to access high-quality products from these brands in a consistent and reliable manner," she said.

Lang said statistics from five major e-commerce platforms in Vietnam showed that beauty care products were among the products earning the highest revenues, with the combined sales of the sector exceeding 37.5 trillion VND (1.47 billion USD) last year.

Skincare products alone fetched 10 trillion VND (391.8 million USD), she said.

The figures were expected to rise steadily in the coming years, she added.