Vietnam Cosmetics Market

Vietnam Cosmetics Market Size & Insights

Vietnam cosmetic market was valued at USD 1.7 billion in 2024 and is forecast to touch USD 2.8 billion in 2032, and the market is expected to grow at a CAGR of 6.7% from 2025-2032, primarily driven by growth in disposable income, rising social media engagement coupled with growing E-Commerce market and evolving consumer’s taste and preferences.

Vietnam Cosmetics Market Overview

The primary growth of the Vietnam cosmetics market is estimated to rise due to changes in the preferences of customers towards organic and natural cosmetic products, rising need for cosmetic skincare and cosmetic products among the working population, and a rise in purchasing power of consumers.

Cosmetics products designed for correcting, modifying, and cleaning the skin, fingernails, teeth, and hair. This category includes makeup, skin creams, shaving creams, shampoos, conditioners, soaps, and deodorants all aimed at improving one’s physical look. Cosmetic products are gaining popularity among the younger generation in Vietnam, propelled by the necessity to maintain a youthful and attractive look.

To address different end user requirements, the Vietnam cosmetic companies imported large amounts of cosmetics from different regions such as Europe, Japan, Korea, and the U.S to meet local demand. In 2022, from South Korea, Vietnam traded in nearly USD 327 million worth of cosmetic products followed by France, Singapore, and Japan.

Vietnam Cosmetics Market Dynamics

Vietnam Cosmetics Market Drivers

Increase in Disposable Income

The growing disposable income in Vietnam owing to robust economic growth has surged consumer spending and consumer spending on cosmetic products is on the rise and this spending upward movement is projected to in the years to come. As Vietnam government aspire to become a middle income country by 2023 under the plan Vietnam master plan 2021 to 2030 this will further drive the demand for cosmetic products in the country. According to National Statistics Office, in third quarter of 2024, the final consumption increased by 7.02% YoY, contributing 59.78% to the overall growth rate of the economy.

Rising social media engagement coupled with growth in E-Commerce

Social media platforms and influencers are convincing consumer to make purchase decisions in the cosmetic industry in Vietnam. Therefore, the growing prevalence of social media platforms and the extensive adoption of digital marketing are driving the expansion of the cosmetic market in Vietnam in the forecast period. The influence of these trends on the market is significant, resulting in changing preferences of consumers in the digital age. Influencers and beauty bloggers have an essential role in marketing cosmetics, shaping trends, and boasting consumer behaviour in Vietnam. The active participation of Vietnamese customers on social media platform, where they seek beauty inspiration and product recommendations, fuels the rising demand for cosmetics in the market.

The growth of the e-commerce sector in Vietnam has contributed to the development of the cosmetic market, as social medica channels and online platforms are significantly used to promote and sell cosmetics. Different brands globally established their online presence in Vietnam to address the growing requirements of the working population.

In addition, the distribution of cosmetic products in Vietnam depends on various channels. Traditional retail outlets, including departmental stores, and independent beauty salons, continue to hold significance in the country’s cosmetic market. However, the expansion of e-commerce platforms, offering convenient online buying of cosmetics, has attained prevalence.

Challenges Faced by Vietnam Cosmetics Market Players

Meanwhile, a significant challenge in the market is the prevalence of counterfeit cosmetic products in the country. This issue can restrain the overall growth of the Vietnam cosmetics market. Counterfeit products not only damage the reputation of genuine brands but also pose health hazards to customers. The prevalence of fake products introduces a competitive disadvantage for legitimate companies and weakens customer confidence in the market. Also, sustainability and ethical considerations predict a challenge that could limit the Vietnam cosmetics market size. The growing environmental awareness among consumers and ethical aspects of cosmetics has led to an increasing demand for products that are ecologically friendly, free from harmful ingredients, and organic. Brands failing to address these concerns may face the risk of losing market share in this environmentally conscious customer insight. Furthermore, a significant increase in competition among market players because of the existence of international as well as domestic market players in Vietnam also restricts the market growth in the forecast period.

Vietnam Cosmetics Market Trends

Whereas, the growing prevalence of different cosmetic products among males also drives the market growth because men are getting interested in grooming products and personal care, including hair, fragrance products, and skin. Market players in Vietnam have started producing men’s goods for personal grooming demand. Also, the trend of using machine learning and artificial intelligence in Vietnam cosmetic market is predicted to impact the market growth positively. AI and machine learning are significantly used to introduce customized experiences for customers. With the advancement and establishment of artificial intelligence and computer science, the trend of customization in cosmetics will develop and be converted into efficient products.

Vietnam Cosmetics Market Segment Analysis

Product Type Insights: Skin care products dominated the largest revenue share

The rise in customer awareness concerning the advantages of self-pampering has driven the adoption of skin care products across Vietnam. Due to the significant emergence of online platforms, and the rise in internet penetration, the demand for cosmetics products and skin care products rises.

In addition, the usage of skincare creams has surged among Gen Z, driven by the different benefits they offer in developing skin texture and tone. To address the growing need for customers, the foremost players in the market are majorly concentrating on different research and development activities to introduce innovative product lines in the skin care product segment market.

Distribution Channel Insights: Online Sales is Forecast to Grow at Higher Rate during the Forecast Period

Different players in the market are planning to establish different outlets and departmental stores where a customer physically tests the products and makes a choice to buy. The offline sales channel is essential in maintaining customer relationships that allow the producers to develop new products which further results in an increase in demand for cosmetic products in the Vietnam market. Additionally, the foreign players are also making huge investments in cosmetic products in Vietnam to deliver a diverse variety of products.

In Vietnam, there is a rise in awareness among consumers, and reviewing what’s new and innovative in beauty products is accessible offline they buy. This provides an opportunity for market players to set up more stores offline in Vietnam and start promoting beauty products there. These factors are predicted to drive offline sales channel segment market growth.

Vietnam Cosmetics Industry Market Share & Competitive Landscape

Several leading companies are Unilever, L’Oréal, Estee Lauder, Procter & Gamble, Shiseido Cosmetics Vietnam Co., YLV Company Limited etc.

Big market players are planning to set up new facilities in Vietnam which is predicted to result in different market growth opportunities. In 2019, a Japanese company successfully announced to set up its initial store in Ho Chi Minh City, Vietnam to address the growing needs of customers. The company representative revealed that they estimate to have nearly 15 stores across Vietnam in the coming 4-5 years. With the arrival of giant organizations and robust competition is be predicted to further boost the cosmetics market in Vietnam. Similarly, in 2019, Watsons entered the Vietnamese market to expand its reach. Watsons is known for owning over 7,200 stores globally. The arrival of Watsons is predicted to bring different major investors and promises to strengthen the Vietnamese cosmetic market coupled with the establishment of different retail chains.

Vietnam Cosmetics Market News

• • In 2023, Baemin launched the Lazy Bee beauty brand to enter into the Vietnamese cosmetics market and address the growing demand for personal care products.
  • In 2023, Lush joined hands with Maison Retail Management to establish its initial store in Vietnam.
  • In 2023, Meiyume successfully expanded across the Vietnam market to provide the best beauty solutions and enhance its goods with its science-based solutions.
  • In 2023, Sol Corporation International Company Ltd. announced promoting and distributing its products across the Vietnamese market.
  • In 2023, SK-II established its first store with LUXASIA in Vietnam to offer beauty products to consumers and reinforce its competitive image.
  • In 2021, Unilever acquired Paula’s Choice to expand business across Vietnam and introduce its products to a bigger customer base.

Vietnam Cosmetics Market Scope of the Report

Vietnam Cosmetics Market Research Report Segmentation

Vietnam Cosmetic Market has been segmented on the basis of product and distribution channel. Based on the product, the market is segmented into skin care, hair care, makeup, fragrance, others. On the basis of distribution channel, the market is segmented into Retail Sales Channel and Online Sales Channel. The Retail Sales Channel segment is further segmented into General departmental store, Supermarkets, Drug stores, Others.

Vietnam Cosmetic Market by Product

• • Skin Care
  • Hair Care
  • Makeup
  • Fragrance
  • Others

Vietnam Cosmetic Market by Distribution Channel

• • Retail Sales Channel
    • General departmental store
    • Supermarkets
    • Drug stores
    • Others
  • Online Sales Channel

Vietnam Cosmetic Market Leading players

• • Unilever
  • L’Oréal
  • Estée Lauder
  • Procter & Gamble
  • Shiseido Cosmetics Vietnam Co.
  • YLV Company Limited