The Future of the Skincare Market in Thailand
The Thai skincare market has been forecast to increase at a compound annual growth rate (CAGR) of 3% through to 2017, increasing from a total of THB 17.5 billion at the end of 2012, to hit a value of over THB 20 billion by 2017.
Thai people are paying more attention to their beauty. There are additional environmental factors damaging their skin in daily life, such as pollution and hot weather. This does not only apply to women, but has also been spreading to men, leading to healthy growth for the skin care sector.
Looking good becomes an important factor on both the work and personal life fronts. This has also resulted in greater demand for aesthetic services as can be seen from the booming business of beauty clinics and hospitals.
According to a recent report, 'The Future of the Skincare Market in Thailand to 2017,' in terms of categories, 'Facial Care' is by far the largest sector, with 'Body Care' the second largest category. Despite this, the fastest growing sector in skincare in Thailand is 'Depilatories', which are forecast to grow at a CAGR of over 4% between 2013 and 2017.
MarketLine have suggested the ‘Facial Care’ sector was worth an estimated value of $99.1 million in 2012, representing a CAGR of 1.8% between 2008 and 2012.
Due to the healthy performance of acne treatments in skin care, many mass and premium brands have offered a special line for treating acne to respond to the overwhelming demand in the marketplace. Demand was derived from the hot weather and pollution, which are the causes of oily faces, pimples and acne problems. Acne is therefore a common facial skin problem amongst Thai people.
A recent L’Oréal Finance report has stated that 60% of young men in Thailand say they are concerned about acne or oily skin, whilst more than 70% of young men in Thailand aged between 15 and 24 years use a cleansing lotion.
Sometimes, acne treatment products are offered in sets, for example, acne 3-in-1 product sets. This might include an oil control product, pore minimiser and acne control moisturiser. The category has recently become more competitive, with the introduction of a number of skin clinics throughout Bangkok and in other provinces.
Over the next five years, general purpose body care is expected to show an improved performance, however, facial care, especially mass acne treatments, are expected to demonstrate the healthiest growth of all, as the category remains small, and has potential for growth. Furthermore, the majority of the products within the acne treatments sector are mass brands, which tend to be accessible by consumers.
L'Oreal (Thailand) Co, the No 2 beauty company in the Kingdom, has recently achieved leadership of the country's skincare market with an 18% value share.
The company claims to be the fastest-growing beauty company in the country, with a 19% increase in overall business turnover in 2012, with 112 million products sold and continued double-digit growth in the first quarter of this year.
Written by Matt Bodimeade atcompaniesandmarkets.com