Skincare and Makeup Trends in Southeast Asian E-Commerce

In recent years, bolstered by economic expansion and strong demands for trendy and personalized beauty products among young consumers, the Southeast Asian beauty market has experienced significant growth. According to the anticipation of TMO Group, from 2018 to 2028, the beauty market will continue to grow at a compound annual growth rate of 3.3% to 4%. By 2024, the market size is expected to reach $34.21 billion, making Southeast Asia a key sector in beauty industry.

(Data source: TMO Group)

Additionally, the rise of the internet and e-commerce has brought more opportunities for cosmetic enterprises. Platforms like Shopee and Lazada are leading the way, and TikTok rises to gain traction. Based on the data from e-commerce platforms in May 2024, this report aims to give an in-depth analysis of Southeast Asia’s beauty sector from the perspective of market share, brand distribution, and price range.

An Overview of the Beauty Market in Southeast Asia

1. Market Size of Cosmetic Products

In May 2024, the total market size of cosmetic products on Shopee and Lozada in Southeast Asia reached approximately USD 620 million. Among these, Vietnam gained the largest market share at about 45%, while Indonesia ranked second with approximately 28%. Together, these two countries accounted for over 70% of the market, highlighting a strong demand for cosmetics.

(Data source: TMO Group)

2. Cosmetic Market Segment: Skincare Emerged as the Top-selling Products

Cosmetic products sold on e-commerce platforms in Southeast Asia mainly include skincare, makeup, and beauty tools. Notably, skincare products consistently hold the largest market share. Additionally, the specific market share for each category varies by country, highlighting differences in local consumer preferences.

• Singapore shows the highest preference for skincare at 76%. Thailand and Vietnam also have strong skincare market shares, 72% and 69% respectively.

• For makeup products, Indonesia, the Philippines, and Malaysia have a relatively larger share, with sales exceeding 30%. In contrast, Singapore has the lowest makeup market share at 14%.

(Data source: TMO Group)

Skincare Trends in Southeast Asian Beauty Market

1. Market size of Skincare: Vietnam Shepherds the Market

On Shopee and Lazada, Vietnam has the largest market share of skincare products, accounting for 48% of total sales, followed by Indonesia with 26% and Thailand with 14%.

(Data source: TMO Group)

2. Top-selling Skincare: Sunscreen and Hydrating Products

Southeast Asia’s hot climate and high levels of ultraviolet radiation create significant demands for sunscreen and moisturizing products. On Shopee and Lazada, this demand is reflected in the market share of various skincare types. The top three skincare products are sunscreen, facial serum, and facial moisturizer. Specifically, sunscreen and after-sun products accounted for the largest market share of 24%, followed by facial oils/serums of 20% and facial moisturizers of 17%.

(Data source: TMO Group)

The market share for skincare products varies across different countries, each displaying its own characteristics.

• Vietnam: Sunscreen is highly preferred.

• Thailand, the Philippines, Malaysia, and Singapore: Facial oils/serums lead the market and accounted for the largest revenue share. Among them, consumers in the Philippines are more interested in fundamental skincare routines. Related products such as facial moisturizers, cleansers, and skincare sets are also sold well.

• Indonesia: Facial moisturizers have gained significant popularity.

(Data source: TMO Group)

3. Top 10 Skincare Brands: Intense Competition

The market shares of the top ten skincare brands are very close, with each holding a relatively small part. This indicates intense competition in the Southeast Asian skincare market, where no single brand has managed to dominate.

• International brands thrive in skincare: Japanese and Korean brands, as well as those from Europe and the US, have strong competitiveness and market recognition in Southeast Asia. Among the ranking list, ANESSA from Japan and CeraVe from the US each hold about 3.5% of the market share, making them the top-selling skincare brands in this region. Korean brand SKIN1004 ranks third with a market share of 3.3%.

• Local brands struggle amidst competition: Local brands in Southeast Asia face strong competition. Only Skintific from Indonesia successfully entered the best-selling list.

(Data source: TMO Group)

4. Price Range of Skincare Products: Malaysia and Singapore Show Potential in High-End Market

In the skincare market, products priced between $5-10 are the top sellers, accounting for nearly 40% of sales. Products priced between $2-5 and those between $10-20 each contribute about 20% of sales. Price sensitivity varies by country:

• Indonesia and Thailand: Consumers favor lower-priced skincare, with products priced between $2-10 generating over 50% of sales, indicating a consumer’s demand for budget-friendly skincare products and preference for value for money in these regions.

• Vietnam and the Philippines: The top-selling skincare products in Vietnam and the Philippines fall within the $5 to $10 price bracket. Consumers in these regions are attracted to mid-range products that balance quality and affordability.

• Malaysia and Singapore: Notably, consumers are more inclined towards higher-priced skincare items. Products priced above $200 account for over 10% of sales, largely driven by skincare sets.

(Data source: TMO Group)

Makeup Trends in the Southeast Asian Beauty Market

1. Makeup Market Size: Vietnam Shepherds the Market

Much like the skincare sector, Vietnam also holds the largest share of the makeup market on Shopee and Lazada, accounting for 43% of sales, followed by Indonesia with 32%, and Thailand with 11%.

(Data source: TMO Group)

2. Top-selling Categories: Lip Makeup, Makeup Removers and Face Makeup

In general, lip makeup (such as lipstick and lip gloss), makeup removers, and face makeup (such as foundation, powder, and blush) are the most popular products.

(Data source: TMO Group)

Across Southeast Asia, the popularity of different makeup products varies, reflecting regional preferences:

• Vietnam: Makeup removers are particularly popular, reflecting a strong interest in post-makeup care.

• Indonesia, Thailand, and the Philippines: Face makeup and lip makeup have gained significant popularity. Especially in Thailand, face makeup holds a market share of around 47%.

• Malaysian: Lip makeup products accounted for the highest market share of 56%.

• Singapore: Face makeup was the most profitable segment, with a market share of 45%.

(Data source: TMO Group)

3. Top 10 Makeup Brands: Muslim Makeup Rising in Popularity

Compared to skincare brands, makeup brands show relatively greater variation in market share, with the top three each holding over 5% of the market. The presence of global cosmetic brands highlights a diverse and competitive market landscape where both local and international players have significant roles.

• French brand leads: Bioderma from France has emerged as the leading brand in the makeup sector. Additionally, L’Oréal Paris and La Roche-Posay cracke the top ten, reflecting strong global impact and consumer trust in French brands.

• Local brands on the rise: Local brands have a stronger competitive edge in the makeup sector compared to skincare products. Indonesian brands Wardah, Make Over, and Skintific, are gaining prominence, showcasing the growing influences and appeal of local cosmetics brands.

• Muslim makeup gaining popularity: Wardah stands out as the first halal-certified cosmetics company in Indonesia, catering to the special needs of Muslim consumers. Its youthful, social, and fashionable brand image has helped it gain a significant market share in Muslim-majority countries like Indonesia and Malaysia.

(Data source: TMO Group)

4. Price Range of Makeups: Lower Priced Products Prevailed

Overall, cosmetics priced between $5-10 are the most popular in the makeup category, representing nearly 40% of total sales revenue. This is followed by products priced between $2-5, which account for over 20% of sales. Consumer sensitivity to cosmetics pricing varies by country:

• Indonesia, Malaysia, and the Philippines: Consumers prefer lower-priced items, with products priced between $2-10 making up about 50% of sales.

• Thailand and Vietnam: The best-selling cosmetics in these countries are typically priced between $5-10.

• Singapore: Products priced between $10-20 are the top sellers, contributing more than 30% of total sales.

(Data source: TMO Group)

Southeast Asian Beauty Market on TikTok

TikTok is becoming an increasingly significant platform of the Southeast Asian beauty market. TikTok’s beauty sales across the six Southeast Asian countries surged to around $190 million in May 2024. Unlike the market share on Shopee and Lozada. Indonesia stands out as TikTok’s premier beauty market, contributing 31% of the total sales. Thailand and Vietnam follow with a market share of 25% and 17% respectively.

(Data source: TMO Group)

ChemLinked Comments

Overall, the Southeast Asian beauty and skincare e-commerce market is experiencing robust growth in 2024, offering expansive opportunities for global beauty brands. When entering the Southeast Asian market, beauty companies are encouraged to thoroughly consider the unique needs of each country and enhance their market presence through localized product strategies to achieve rapid brand growth.

• Focus on specific product types: Skincare dominates the Southeast Asian market, making up nearly 70% of the total market share. Within this segment, sunscreen and facial serums lead in sales. In the makeup category, lip and facial makeup also show strong sales performance. Cosmetics companies can prioritize promoting these high-demand products in the region to boost sales.

• Enhance brand image and expand influence: E-commerce platforms such as Shopee and Lazada are major sales channels for beauty products in Southeast Asia. Social commerce platforms like TikTok are also rapidly emerging, offering brands more varied sales avenues. Cosmetics companies can enhance their brand image and broaden their influence and sales channels by intensifying social media promotions and partnering with key opinion leaders (KOLs) in Southeast Asia.

• Adapt to market preferences: There are notable differences in market preferences across different countries. For instance, there is a strong demand for sunscreen products in Vietnam while facial serums are popular in Thailand. Cosmetic companies can leverage these trends by offering targeted products tailored to each market and employing localized marketing strategies to enhance their market share.