Clariant upbeat on outlook for cosmetics

The Thai cosmetics market looks promising this year as more Thai people have now resumed participation in outdoor activities following the pandemic, according to Swiss specialty chemicals maker Clariant.
Since participation in outdoor activities has increased since the end of the pandemic last year, demand for skincare products has soared, which led Thailand’s cosmetic market to expand, said Vipul Bhatt, Clariant’s head of sales and application for personal care and home care in Asia-Pacific.
Moreover, the rise of e-commerce platforms and shifts in consumer behaviour towards online shopping across Southeast Asia have driven a surge in online sales of cosmetic products.
“We see a growing trend of online purchases of cosmetic products in this region, with a vibrant variety of products being offered to consumers,” said Mr Vipul.
Buying cosmetic products online has many advantages such as convenience and a wide variety of choices, he said.
While online sales are growing, in-store sales of cosmetic products remain stable, Mr Vipul said.
“Regardless of the buying channels, consumers still demand high-quality skincare products,” he said.
Mr Vipul said Thai consumers are reshaping the beauty industry with demands for diversity, purpose and simplicity.
For example, some Thais prefer South Korean products and are enthusiastic about South Korean-style beauty routines.
The company also sees a segment of Thai consumers embracing what it called a “minimal” approach to their beauty routines.
Instead of using many skincare products, these minimalists aim to simplify their routines, using fewer but higher-quality products, which help save their time.
He also noted that Thais are becoming more educated about skincare, and increasingly seek “hero ingredients” — specific ingredients that cater to their unique skincare needs.
This has led brands to feature their products more prominently by listing hero ingredients such as retinol, hyaluronic acid, and niacinamide on product labels with larger fonts.
According to the company, the Thai cosmetics market is expected to grow this year due to a recovery in consumer purchasing power post-pandemic, changing beauty trends, and the growth of online distribution channels that are more convenient for consumers.
This aligns with the Trade Policy and Strategy Office’s outlook. It has forecast that the value of the domestic retail market for cosmetics is estimated to reach 281 billion baht this year, a 10.4% increase over 2023.