The USD 730 Million Dollar Market
- Population: More than 90 million.
- Steady GDP growth rate: Stable above 5 percent in the past few years and the country’s economic expansion is driven by the service sector.
- An emerging beauty market with huge potential that has been experiencing impressive growth; growing at a rate of 30% per annum for the past few years
- Vietnam’s inflation rate decreased from 23 percent in 2011 to just fewer than 3 percent in 2014
- Vietnam has been cited as having the fastest-growing middle class in the Southeast Asian region, according to the latest survey conducted by the Boston Consulting Group (BCG). The middle class is expected to increase to 33 million by 2020, almost triple the 12 million in 2012, while average per capita income is projected to increase by USD 3,400 each year, according to Vietnam News.
- In 2013, Vietnam imported USD$528 million worth of cosmetics, toiletries and personal care products
Total trade volume of cosmetics, toiletries and personal care products in 2013 was USD$730 million.
Vietnam’s beauty and personal care market saw strong value growth in 2013 in all categories, notably skin care, men’s grooming and fragrances. Demand for beauty and personal care products was fuelled by increasing consumer awareness of beauty and personal appearance as a result of rising disposable incomes and living standards. Furthermore, key players such as Unilever Vietnam International Co., Ltd. and Procter & Gamble Vietnam Ltd. constantly employed extensive marketing campaigns as well as launching new products, all of which help to stimulate demand among consumers.
Strong potential for growth: Vietnam is expected to continue its robust development in beauty and personal care over the forecast period. The country has great potential for growth with the young population and the untapped market in rural areas. Consumers, especially those living in urban areas, are expected to see greater exposure to products’ benefits and usage, and therefore have a more sophisticated demand for beauty and personal care products. Value growth and product availability are both expected to be strong in the coming years.