An Overview of the Vietnam Beauty Market

An Overview of the Vietnam Beauty Market

Cosmetics are a big business in Vietnam. The industry is booming thanks to many Vietnamese consumers investing in beauty and personal care products due to rising living standards. Vietnam is a hot spot for foreign cosmetic brands with up to 93% of personal care products imported. Korea is the largest cosmetic exporter to Vietnam, followed by Europe, Japan, Thailand, and the US. 

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The revenue of the cosmetics market in Vietnam has grown steadily across all categories since 2019, with forecasts for 2023 to continue to increase.

YearEye CareFacial Skin CareLips CareNatural Cosmetics
Turnover over the years in USD (million).

Vietnam has experienced significant economic progress, transitioning from a low-income to a middle-income country. As a result, there has been a rise in the middle-income class, and this group is now devoting more of their income to purchasing cosmetics products. In Vietnam, the average middle-class woman spends around VND 450,000 to VND 500,000 (equivalent to US$19 to US$21) each month on makeup and skincare.

Additionally, the prevailing beauty standards in the country are evolving, influencing people to place greater emphasis on personal grooming and appearance.

The widespread use of social media in Vietnam has also played a significant role in fueling the demand for cosmetics. The influence of the “Korean wave,” a phenomenon related to the popularity of Korean culture and entertainment, has also had a substantial impact on beauty trends in Vietnam. Korean idols and influencers have been instrumental in promoting self-care practices through social media channels, campaigns, advertisements, and beauty blogs.

Over recent years, the percentage of women in Vietnam using cosmetics has risen significantly, from 76 percent in 2018 to 86 percent. Looking ahead, it is projected that the cosmetics market in Vietnam will continue to expand at an impressive rate of 15-20 percent annually over the next decade. This growth trajectory reflects the country’s increasing prosperity and changing beauty preferences among its population


There are many people who think that the beauty care industry following modern trends will gradually be saturated. However, this only happens when it is merely enjoyment and has no development value. As for a potential industry, which is focused on by many people and meets the beauty needs of people today, the beauty industry is extremely important.

1. Improve The Quality Of Life

For the previous society, the beauty industry was merely to show beauty or to overcome the shortcomings of parts of the body, especially the face. However, today, this industry has changed significantly and has become one of the indispensable service industries in life. Thanks to the beauty industry, people can “Confidently show off their identity” when they can overcome the inherent weaknesses on the face or body, bringing a fresher, more comfortable, and energetic appearance.

It can be said that the beauty care industry not only helps people relax but also improves their quality of life. Models, actors, .. before going out or making public appearances also need to adorn their faces. And there are many people who have faced life thanks to having a lovely face and a “standard without adjustment” body like hot teenagers and hot boys on social networks.

2. Economic Stimulus

The rapidly increasing demand for beauty will help companies and businesses dealing in beauty products to increase sales and contribute to the national economy. Further, it is to expand the path of investment and development of the cosmetic industry in Vietnam.

3. Multi-country Connection

The beauty care industry is not only a service industry but also an art industry. Meanwhile, art is the bridge to multinationals. For example, when it comes to cosmetology or cosmetic technologies, many people will immediately think of the beautiful country of Korea. And it is that thought that has contributed to the development of the image and people of the land of “kimchi”.


Vietnam’s primary cosmetics imports come from South Korea, with Europe, Japan, Thailand, and the US following suit as major exporters.

CountryCosmetics import market share
South Korea30%
The EU23%
The US10%
Source: US Department of Commerce

Singapore and China also export beauty and personal care products to Vietnam. However, domestic brands only account for less than 10 percent of the total consumption. These local brands primarily focus on offering affordable, lower-end products that compete mainly on price..

The dominance of foreign players in the Vietnamese market is primarily attributed to the preference of Vietnamese consumers for imported products. Foreign brands are perceived to have higher quality and a wider variety of products that cater to individual needs, which attracts the majority of consumers.

In 2019, Vietnam’s import of beauty products was valued at approximately US$950 million. The most prominent imported items include facial cleansers, facial moisturizers, lipsticks for women, and grooming/shaving products for men.

Though some domestic brands such as Thorakao, Saigon Cosmetic, Lana, Sao Thai Duong, and a new entrant named Cocoon have gained some degree of reputation, they still hold a relatively small market share compared to the dominant presence of international brands.


The availability of various retail chains like Watsons, Guardian, as well as new entrants such as Pharmacity and Matsumoto, has expanded the accessibility of imported cosmetics products to middle-class and affluent consumers in Vietnam.

Additionally, major high-end foreign cosmetics companies have recognized the potential of the young and promising Vietnamese market. Many of them have established representative offices or distribute their products through agents and distributors, including:

  • Unilever, with its renowned brand Pond’s, holding up to 12 percent of the market share.
  • Beiersdorf Vietnam, offering Nivea products.
  • LG Vina Cosmetics, providing high-end cosmetics like Ohui and The Face Shop.
  • AmorePacific Vietnam, offering brands like Laneige and Innisfree.
  • L’Oreal Vietnam Co Ltd, representing the L’Oreal brand.


The Vietnamese population is increasingly health-conscious and paying more attention to the ingredients in beauty products available in the market. This trend has created new opportunities for cosmetics companies seeking to expand their offerings or for newcomers wanting to enter Vietnam’s cosmetics and personal care market.

Investors should consider producing and distributing domestically sourced organic beauty products for two primary reasons:

  • Vietnam boasts a wealth of relatively affordable organic and herbal ingredients suitable for beauty products. Examples include abundant coconut from the Mekong Delta region, which plays a vital role in various beauty items. 
  • Native ingredients like turmeric, green tea, and aloe vera offer healing properties for damaged skin, providing a solid foundation for businesses interested in developing organic products domestically.

Secondly, the mindset of local consumers is evolving, particularly among Generation Z, who have exceptional concern about the quality of personal care products. As a result, there is expected to be substantial growth in the beauty market for organic and herbal products. Major players in the industry, such as L’Oreal and Nivea, are already adapting to this trend by introducing natural and organic product lines.

Despite these opportunities, challenges persist in Vietnam’s cosmetics market. The industry is relatively young and unstable, partly influenced by changing Korean trends, making it vulnerable to fluctuations. Korean celebrity endorsements also heavily impact product sales, posing additional challenges for companies.

Moreover, the market is highly price-sensitive, as a significant proportion of consumers are young individuals with lower incomes. To remain competitive, cosmetics companies must set their price range in line with the purchasing power of Vietnamese consumers.

Western brands may face stereotypes in the Vietnamese market, with consumers often believing that Asian-made products are better suited for their skin compared to European-made products. However, Western brands can overcome this perception by demonstrating a strong commitment to product quality, as Vietnamese consumers prioritize ingredient quality above other factors.


The development of digital technology allows people to easily find information, compare and evaluate many different sources of information about products and services.

The obvious change in people’s lifestyles, interests, beauty care needs, and ways of finding information via the internet today has prompted beauty business owners to change the way they approach customers. and improve the art of customer care.

The story of business success – failure, gain – loss in the era of 4.0, in addition to service quality, businesses know how to apply technology properly and quickly, becoming a pioneer in digital transformation to have a new business. sustainable revenue.

In fact, many businesses have quickly updated the trend, taking advantage of digital transformation to bring brand value, attract new customers, and retain old customers. This is the smart way. However, not everyone is quick enough to catch the trend.

Currently, most websites of hair salons, spas, and beauty salons do not have the ability to identify brands, lack competition, and make it difficult for customers to make decisions.

Beauty businesses also lack a way to automatically track customer behavior to promptly support their needs. This has indirectly pushed customers toward competitors.

Many beauty businesses often have problems in scheduling appointments, confusing or missing customers during peak times; difficulties in retaining customers, and the rate of returning customers to use the service is not high,…

The above problems can make slow-moving businesses increasingly lag behind if there is no reasonable direction.


By developing a profound comprehension of cosmetics marketing in Vietnam and wholeheartedly embracing its nuances, any brand can successfully introduce its products and establish a prominent brand image in the country. Nevertheless, international brands aspiring to penetrate the Vietnamese beauty market must undertake thorough preparations, notably by collaborating with local distributors or experts.

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