Vietnam Skin Care Market Outlook 2028

Vietnam Skin Care Market Overview

• The Vietnam Skin Care Market is valued at USD 936.21 million, driven by a growing middle class, increased disposable income, and a heightened interest in personal care products. Urbanization and exposure to Western and Asian beauty trends, particularly from South Korea and Japan, are influencing consumer preferences toward premium skincare products. Rising awareness about anti-aging and sun protection products has also contributed to market expansion.

• The market is predominantly concentrated in major urban centers such as Ho Chi Minh City and Hanoi. These cities dominate due to their affluent populations and easy access to a wide variety of skincare brands. Ho Chi Minh City, in particular, serves as a hub for retail expansion with a growing demand for premium beauty and personal care products. The influence of international skincare brands is notably strong in these regions.
• The Vietnamese government, through the Ministry of Industry and Trade, has launched initiatives to promote the local production of cosmetics, including skincare products. The goal is to reduce dependence on imports and strengthen the domestic industry by offering financial incentives, tax benefits, and low-interest loans to local manufacturers. These initiatives are aimed at boosting the quality and competitiveness of Vietnamese skincare brands, ensuring they can compete with foreign products in both the domestic and international markets.

Vietnam Skin Care Market Segmentation

By Product Type: Vietnam's skin care market is segmented by product type into facial care, body care, hand care, and lip care. Facial care holds a dominant market share due to the increasing demand for anti-aging and moisturizing products. Acne treatments and facial cleansers are particularly popular among younger consumers, driven by heightened awareness of skincare routines and the influence of beauty influencers on social media.

By Distribution Channel: The market is segmented into supermarkets, specialty stores, e-commerce, and department stores. E-commerce platforms have gained significant traction, particularly in urban areas, owing to the convenience of online shopping and increasing concerns over counterfeit products. Major players like Shopee and Lazada dominate the online skincare sales, offering consumers access to a wide range of both local and international brands.

Vietnam Skin Care Market Competitive Landscape

The Vietnam Skin Care Market is dominated by both local and international players. Companies like L'Oral Vietnam, Unilever, and Shiseido have a strong presence, particularly in the premium and mid-range segments. The competition is intense, with brands focusing on innovation, product differentiation, and marketing to capture consumer loyalty. Local players such as LG Vina and international names like Este Lauder are competing for dominance in the facial and anti-aging care segments

Vietnam Skin Care Market Analysis

Market Growth Drivers

• Influence of South Korean and Japanese beauty products: The influx of South Korean and Japanese beauty products into Vietnam has significantly influenced local consumer preferences. In 2023, skincare imports from South Korea and Japan played a major role in shaping Vietnams beauty market, with consumers increasingly adopting advanced skincare routines popularized by these countries, such as sheet masks, serums, and multi-step regimes. According to Vietnams Ministry of Industry and Trade, the value of imported beauty products from these two nations has reached VND 25 trillion, reflecting the growing demand for these international products within the Vietnamese market.
• Increasing Consumer Interest in Anti-Aging Solutions: Vietnam's population is experiencing a demographic shift, with a significant number of citizens aged 60 and above, as reported by the General Statistics Office of Vietnam in 2023. This aging population is driving the demand for anti-aging skincare products, with older consumers seeking solutions to address wrinkles and other signs of aging. This growing interest has led global and local brands to introduce specialized anti-aging skincare lines, expanding the market for these products. The focus on anti-aging solutions is especially strong in urban areas, where consumer awareness and disposable incomes are higher.
• Expansion of E-commerce Platforms for Skincare Products: Vietnam's e-commerce industry has been growing rapidly, with online retail sales reaching VND 500 trillion in 2023, according to the Ministry of Information and Communications. The convenience and variety provided by online platforms have significantly boosted the sales of skincare products. Major platforms like Lazada and Shopee have become key distribution channels for both local and international brands. This trend is driven by a young, tech-savvy population and the widespread use of smartphones, making e-commerce an essential part of Vietnam's retail landscape.

Market Challenges:

• Rising Counterfeit Products in Both Online and Offline Channels: Counterfeit skincare products remain a significant challenge in Vietnam, with authorities seizing over VND 200 billion worth of fake cosmetics in 2023, according to the Vietnam Competition and Consumer Authority. These counterfeit goods are prevalent both online and in traditional markets, undermining consumer trust and affecting legitimate brands. The rise of counterfeit products also poses health risks, leading to a push for stricter regulation and enforcement from local authorities
• Sustainability and Ethical Production Concerns: Consumers in Vietnam are increasingly conscious of sustainability, with growing concerns about the environmental impact of their skincare products, as highlighted in a 2023 survey by Vietnam's Ministry of Natural Resources and Environment. This shift in consumer behavior is driving demand for ethically produced, eco-friendly skincare products. However, local manufacturers often face challenges in meeting these expectations due to the higher production costs associated with sustainable practices.

Vietnam Skin Care Market Future Outlook

Over the next five years, the Vietnam Skin Care Market is expected to grow significantly due to increasing urbanization, rising disposable incomes, and expanding e-commerce platforms. Growing consumer awareness about the importance of skincare, particularly anti-aging and sun protection, will continue to drive demand for premium products. Furthermore, the trend toward natural and organic skincare is expected to reshape the product offerings in the market.

Market Opportunities:

• Personalization of Skincare Through AI and Tech: Personalization in skincare is gaining traction in Vietnam, fueled by advancements in AI and machine learning technologies. In 2023, the Ministry of Information and Communications noted a significant uptake of personalized skincare solutions among tech-savvy consumers. Brands are increasingly leveraging AI to create customized skincare regimens tailored to individual skin types and conditions. This trend is particularly appealing to younger consumers, who are more inclined to embrace tech-driven solutions for their skincare needs, marking a shift towards more personalized and precise skincare routines in the market.
• Rise of Multi-Functional Beauty Products: Vietnamese consumers are showing a growing preference for multi-functional beauty products that provide several benefits in a single application. According to the Ministry of Industry and Trade, products like BB creams, which combine skincare and makeup benefits, have become particularly popular in 2023. These products cater to the needs of busy consumers who seek convenience without compromising on the quality and effectiveness of their beauty routines. The demand for such versatile products is expected to continue growing, driven by the fast-paced lifestyles of urban consumers.