|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD135.26
million
|
|
CAGR
(2023-2028)
|
3.75%
|
|
Fastest
Growing Segment
|
Emollients
|
|
Largest
Market
|
Central
|
Market Overview
Vietnam Personal Care Ingredients Market has valued
at USD 135.26 million in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 3.75% through 2028. In recent years, there has
been a significant surge in the number of local beauty brands in Vietnam. These
brands have emerged with a strong focus on utilizing natural and organic
ingredients, aligning themselves with the global trend towards cleaner and more
sustainable beauty products. As consumers in Vietnam become increasingly
conscious of the ingredients in their skincare and beauty products, the demand
for high-quality, locally-sourced ingredients is expected to experience
substantial growth.
Vietnamese consumers are displaying a heightened
awareness regarding the ingredients used in their personal care products. This
growing consciousness, coupled with the rising middle class in Vietnam that has
more disposable income, is driving the demand for premium personal care
products. Among the most sought-after imports are facial cleansers and skincare
products renowned for their efficacy and quality.
In conclusion, the Vietnam personal care
ingredients market is poised for promising growth, driven by a combination of
both local and international brands, an increasing consumer awareness of
product ingredients, and favorable demographics. As Vietnamese consumers
continue to demand high-quality, sustainable beauty products, the market for
personal care ingredients in Vietnam is expected to flourish, offering ample
opportunities for both local and global players in the industry.
Key Market Drivers
Growth in Cosmetic Industry
Vietnam's growing middle class, coupled with the
increasing disposable income, has led to a significant surge in the demand for
cosmetics. As the economy flourishes, consumers in Vietnam are becoming more
conscious about their appearance and are willing to invest in high-quality
beauty products that enhance their natural beauty and boost their confidence.
This trend is fueled by the influence of social media, where beauty ideals and
trends are widely shared, inspiring individuals to prioritize their personal
grooming and skincare routines.
In recent years, the Vietnamese cosmetic industry
has witnessed the rise of local brands that are making their mark in the
market. These homegrown brands have successfully capitalized on the global
trend towards natural and organic beauty products. By sourcing high-quality,
locally-available ingredients, these brands not only cater to the rising
consumer demand but also contribute to the growth of the personal care
ingredients market in the country. This strategic move not only ensures the
sustainability of the local supply chain but also fosters a sense of pride
among Vietnamese consumers who prefer to support homegrown businesses.
Looking ahead, the future of Vietnam's personal
care ingredients market looks highly promising. With the cosmetic industry
projected to continue its robust growth, fueled by the increasing beauty
consciousness among consumers, the demand for personal care ingredients is
expected to rise correspondingly. This presents an opportunity for both local
and international suppliers to tap into the Vietnamese market and offer a
diverse range of high-quality ingredients that cater to the evolving needs and
preferences of consumers.
In conclusion, the rapid growth of the cosmetic
industry in Vietnam is playing a crucial role in driving the country's personal
care ingredients market. As consumers continue to demand innovative and
high-quality beauty products, the need for diverse and quality personal care
ingredients will continue to surge. It is an exciting time for both local and
international players in the cosmetic industry to collaborate and contribute to
the development of Vietnam's personal care sector, ultimately benefiting the overall
economy and the well-being of Vietnamese consumers.
Surge in Technological Advancements
The cosmetics industry in Vietnam has experienced
significant growth and transformation due to technological advancements. From
the development of innovative ingredients to the implementation of cutting-edge
production processes, technology has revolutionized the manufacturing and
marketing of personal care products.
One notable example is the local beauty brand
Skinlosophy, which has successfully combined traditional practices with modern
techniques to create unique and innovative products. Moreover, numerous
Vietnamese brands have recognized and embraced the potential of technology,
utilizing it to carve out a niche in the market for nature-based cosmetic
products.
The rise of e-commerce has played a vital role in
driving the demand for personal care ingredients in Vietnam. With the
increasing penetration of the internet and the convenience of online shopping,
consumers now have easy access to a wide range of cosmetic products.
Consequently, this accessibility has led to an upswing in consumer spending on
cosmetics, further fueling the demand for personal care ingredients.
It is worth noting that more than 90% of medical
equipment in Vietnam is currently imported, highlighting the immense growth
potential in the healthcare sector. As the sector continues to evolve with
technology, there is a growing need for personal care ingredients that are used
in medical applications, such as wound care and skin treatments.
As Vietnamese consumers become more knowledgeable
and discerning, their expectations regarding beauty and personal care products
have increased. Technology plays a pivotal role in meeting these expectations,
ranging from the development of products tailored to specific skincare needs to
the utilization of AI and data analytics for personalized product
recommendations. By leveraging technology, the cosmetics industry in Vietnam
can continue to thrive and cater to the evolving preferences of its consumers.
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Key Market Challenges
Supply Chain Management and Raw Material Sourcing
Vietnam's personal care industry heavily relies on
imported raw materials, which plays a significant role in its overall supply
chain. Similar to many other Asian countries, Vietnam has a high dependency on
imports from China, making it susceptible to global unrest and disruptions in
international trade. This exposes the Vietnamese manufacturing sector to
considerable risks.
Currently, local manufacturers in Vietnam primarily
manage the lowest stages of production and heavily rely on importing raw
materials. This situation highlights the industry's lack of self-reliance in
meeting its raw material needs, leading to potential shortages and disruptions
in the supply chains. As a result, the personal care ingredients market in
Vietnam has been adversely affected by raw material shortages, causing
disruptions in both production and distribution of products.
To ensure the smooth operation of the personal care
ingredients market, effective supply chain management is crucial. However,
managing the supply chain in Vietnam can be challenging due to various factors
such as global unrest, ongoing raw material shortages, and the country's
dependence on imports. Additionally, sustainability practices, including
responsible sourcing of raw materials and efficient waste management, further
contribute to the complexity of the supply chain.
In summary, addressing the challenges faced by the
personal care industry in Vietnam requires a comprehensive approach that
considers the intricacies of global trade, raw material availability, and
sustainable practices. By doing so, the industry can enhance its resilience and
mitigate potential disruptions in the supply chain, ensuring a stable and
sustainable growth trajectory.
Key Market Trends
Increasing Emphasis on Sun Protection
The Vietnam sun care products market has been
experiencing robust growth, driven by increasing awareness of sun protection
and growing concern over skin health. Consumers are seeking sun care products
that not only protect against harmful UV rays but also offer skincare benefits
such as moisturization.
This growth can be attributed to various factors.
Firstly, the rising awareness of sun protection and its importance in
preventing skin damage and premature aging has propelled the demand for sun
care products. With the increasing availability of information about the
harmful effects of UV rays, consumers are becoming more conscious of the need
to protect their skin from sunburn, skin cancer, and other related conditions.
Furthermore, the desire for multifunctional sun
care products is gaining momentum. Consumers are no longer satisfied with
products that solely provide sun protection. They are now seeking sun care
products that offer additional benefits, such as preventing the aging effects
of UV rays like coarse skin, enlarged pores, and deteriorated skin texture.
This shift in consumer preferences is driving the demand for innovative
formulations that combine effective sun protection with skincare benefits.
In addition to these considerations, the
eco-consciousness of Vietnamese consumers is influencing their choices in sun
care products. There is a growing preference for eco-friendly and natural
ingredients in skincare products, including sun care products. Consumers are
not only looking for products that are effective in protecting their skin but
also environmentally friendly. This shift in preference is prompting
manufacturers to source sustainable and eco-friendly ingredients for their sun
care product formulations.
As the emphasis on sun protection continues to
grow, the demand for personal care ingredients used in sun care products is
expected to rise. Manufacturers will need to source ingredients that not only
offer effective sun protection but also cater to the evolving needs of
consumers, such as skincare benefits and eco-friendliness. This presents an
opportunity for ingredient suppliers to develop and offer innovative solutions
that meet these demands.
In conclusion, the increasing emphasis on sun
protection is a key trend driving Vietnam's personal care ingredients market.
As this trend continues, it offers numerous growth opportunities for the
market, shaping its future trajectory. With the rising awareness of sun
protection, the demand for sun care products with skincare benefits and
eco-friendly formulations is expected to further propel the market's growth in
the coming years.
Segmental Insights
Type Insights
Based on the category of type, the emollients
segment emerged as the dominant player in the Vietnamese market for personal
care ingredients in 2022. Emollients, which are extensively used in skincare
products, including face creams, lotions, and body care products, have become
indispensable in the quest for healthy and moisturized skin. These versatile
ingredients not only create a protective barrier on the skin, preventing water
loss, but also contribute to its overall hydration. As a result, the demand for
emollients in the personal care ingredients market has skyrocketed.
Consumer awareness about the numerous benefits of
emollients has grown significantly. People are increasingly recognizing their
ability to improve skin texture and provide deep hydration. This awareness,
coupled with the rising demand for cosmetics and personal care products that
offer moisturizing and nourishing properties, has further fueled the need for
emollients.
Vietnam, known for its abundant supply of
affordable organic and herbal ingredients, has emerged as a key player in the
production of beauty products. The availability of these raw materials at a
competitive cost makes it economically feasible for manufacturers to produce
emollients, contributing to their dominance in the market.
Application Insights
The skin care segment is projected to experience
rapid growth during the forecast period. In recent years, there has been a
significant increase in consumer awareness about skincare. Vietnamese
consumers, in particular, are becoming more educated about the benefits of
various skin care ingredients and their impact on skin health. This growing
awareness is driving a surge in demand for skin care products, causing the
segment to dominate the market.
One of the major growth factors behind this trend
is the strong desire to maintain a youthful appearance. As aging populations
seek effective solutions to preserve their youthful hue, the demand for skin
care products and their ingredients continues to rise.
Moreover, Vietnam is known for its abundant supply
of relatively cheap organic and herbal ingredients that can be used in beauty
products. The appeal of these natural and organic ingredients is growing among
consumers, who perceive them as safer and more beneficial for the skin. This
emerging trend is further fueling the demand for skin care products that
contain these sought-after ingredients.
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Regional Insights
Central emerged as the dominant player in the
Vietnam Personal Care Ingredients Market in 2022, holding the largest market
share in terms of value. One of the key factors contributing to the dominance
of the central region is the strong preference for imported products among
Vietnamese consumers. They often hold international beauty brands in high
regard, perceiving them as synonymous with quality and reliability. This
preference for imported products drives the demand for personal care
ingredients in the central region where many international brands have
established their presence.
The central region of Vietnam boasts a vibrant
consumer base that is highly interested in personal care and beauty products.
This interest is fueled by changing lifestyles and increasing purchasing power.
With the rise of social media and the influence of beauty influencers,
consumers in the central region are constantly exposed to new trends and
products, further driving their demand for personal care ingredients.
Additionally, the central region's diverse population, including a mix of urban
and rural areas, creates a unique market dynamic that contributes to the robust
demand for personal care ingredients.
Furthermore, rising disposable income in the
central region is another major factor driving the personal care ingredients
market. As people have more money to spend, they are increasingly investing in
self-care and beauty, leading to increased demand for personal care products
and, subsequently, the ingredients used in these products. This trend is also
supported by the growing awareness of the importance of personal grooming and
well-being among consumers in the central region.
Recent Developments
- In January 2023, BASF, a leading chemical company,
and IFF, a global leader in taste, scent, and nutrition, announced an exciting
collaboration to develop innovative and sustainable personal care ingredients
in Vietnam. This strategic partnership aims to address the rising demand for
natural and organic personal care products in the Vietnamese market. By
combining BASF's expertise in chemical solutions and IFF's deep knowledge of
consumer trends, the collaboration aims to create cutting-edge ingredients that
are not only effective but also environmentally friendly. This joint effort
underscores the commitment of both companies to drive sustainable innovation
and meet the evolving needs of Vietnamese consumers.
Key Market Players
- BASF SE
- Evonik
Industries AG
- Croda
International PLC
- The Dow
Chemical Company
- Clariant
AG
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By Type
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By Application
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By Region
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- Surfactants
- Conditioning Polymers
- Rheology Control Agent
- Emollients
- Emulsifiers
|
- Toiletries
- Hair Care
- Skin Care
- Others
|
|
Report Scope:In this report, the Vietnam Personal Care Ingredients
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Vietnam Personal Care Ingredients Market, By Type:
o Surfactants
o Conditioning Polymers
o Rheology Control Agents
o Emollients
o Emulsifiers
- Vietnam Personal Care Ingredients Market, By Application:
o Toiletries
o Hair Care
o Skin Care
o Others
- Vietnam Personal Care Ingredients Market, By
Region:
o Northern
o Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam
Personal Care Ingredients Market.
Available Customizations:
Vietnam Personal Care Ingredients Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Vietnam Personal Care Ingredients Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]