Skincare industry on the cusp of rapid growth

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.

Economy

Vietnam's potential promoted to Mexican businesses
Economy

Vietnam's potential promoted to Mexican businesses

A delegation from the Vietnamese Embassy in Mexico led by Ambassador-Designate Nguyen Van Hai has paid a working trip to Guanajuato state to explore opportunities for cooperation between Vietnam and Mexico, as well as between Vietnamese localities and Guanajuato. ​

Localities report progresses in IUU fishing combat
Economy

Localities report progresses in IUU fishing combat

Coastal localities nationwide have implemented practical and effective activities and specific measures, demonstrating their determination to join the nation’s efforts to have the “yellow card” that the European Commission (EC) has imposed on Vietnamese seafood regarding illegal, unreported, and unregulated (IUU) fishing lifted in 2024.

Da Nang Hi-Tech Park attracts 177-million-USD FDI project
Economy

Da Nang Hi-Tech Park attracts 177-million-USD FDI project

The Da Nang Hi-Tech Park continues to strengthen its position as a leading investment hub with the recent in-principle approval of a 177-million-USD project by Dentium Co., Ltd., from the Republic of Korea (RoK).This significant investment brings the total registered foreign direct investment (FDI) in the park to 875.2 million USD, spanning 13 projects.

UNGA President congratulates Vietnam on re-election to UNCITRAL
Economy

UNGA President congratulates Vietnam on re-election to UNCITRAL

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations (UN), had a meeting in New York on November 21 with President of the 79th session of the UN General Assembly (UNGA) Philemon Yang who congratulated Vietnam on the country’s re-election to the UN Commission on International Trade Law (UNCITRAL) for the 2025-2031 term.