A Sneak Peek of the Cosmetic Industry in SEA: Trends and Future Prospects

A Sneak Peek of the Cosmetic Industry in SEA: Trends and Future Prospects

Southeast Asia has become a focal point for financial experts and analysts over the past few years. This region includes countries such as Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, and has a population of over 750 million people. The establishment of the ASEAN Economic Community (AEC) in 2015 and the free trade agreements between its members have made the region an attractive destination for investors and multinational corporations seeking to establish commercial relationships. Not surprisingly, many industries are thriving in the region.

One of the fastest growing in the region is the beauty and personal care market. The beauty and personal care market is a rapidly expanding industry in Southeast Asia, with a growth rate of two digits, set to become the second-largest growth engine after China. This is attributed to the young demographic of the population and the emergence of a growing middle class among almost 600 million people.

The Beauty & Personal Care market is set to continue its upward trajectory, with revenue expected to reach US$30.04bn in 2023. This growth is estimated to continue at an annual rate of 3.57% between 2023 and 2027. Among the various segments, Personal Care is the largest, with a projected market volume of US$14.75bn in 2023. With the rise of e-commerce, online sales are projected to contribute to 16.0% of the total revenue generated by the Beauty & Personal Care market by 2023.

Regional Regulation for Product Safety

ASEAN has adopted the Harmonized Cosmetic Regulatory Scheme, where manufacturers have more responsibilities like those in the European Union. The ASEAN region has also implemented the ASEAN Cosmetic Directive (ACD) regulations for cosmetic products to standardize the requirements of cosmetic products among ASEAN countries to facilitate trade in the region. The implementation of the ACD began on 1 January 2008 in Singapore.

Then, to minimize technical trade barriers, the ASEAN Cosmetic Committee (ACC) and ASEAN Cosmetic Scientific Body (ACSB) convene biannually to discuss regulations and harmonization across the region. This includes revising the ACD annexes.

Looking back to look forward

Citing euromonitor's report as world leader in strategic market research reporting in COSMOPROF article, Indonesia is Southeast Asia's top market. Indonesia's large market has generated annual revenue of $11.2 billion expected by 2022, based on an average annual growth of 6.3% between 2019 and 2022. The focus in Indonesia is on halal cosmetics due to the growing Muslim population.

Followed by the Thailand's beauty market that was valued at $6.8 billion in 2020. The country's success on the global stage can be attributed to its political foresight, commercial agreements, and infrastructure development. Euromonitor predicts that the Thai beauty market will exceed $7.3 billion in 2022, with an annual growth rate of over 2% for the next two years.

The top 10 powerhouses in Asia for the sector also include the Philippines, Malaysia, and Vietnam. Still based on euromonitor report, these three countries account for $8.8 billion of Southeast Asia's revenue. E-commerce and new digital sales channels played a significant role in the region's response to the pandemic, particularly in Vietnam where beauty product sales reached 9.7% in 2020. Singapore and Indonesia also experienced growth in sales via digital channels, with rates exceeding 8% in both countries.

Despite experiencing a 4.1% decline in 2020, the Philippines is expected to see growth between 3% and 5.7% in the next two years. Malaysia recorded an average annual growth rate of over 6% between 2016 and 2019, with a slight increase of 1.6% in 2020, and is predicted to have an average annual growth of 6.5% in 2021-2022. Myanmar experienced an annual growth rate of 20% from 2016 to 2019 and saw a growth of 9.4% in 2020. In the next two years, an 11% growth rate is expected. Laos had a steady growth rate of 13% until 2019 and a growth of 11.9% in 2022


Charrier, Jean-Philippe. (2020). Growth Beyond China: Mass and Prestige Beauty Are Accelerating Across Asia.

Statista. Beauty & Personal Care - Southeast Asia.

COSMOPROF. (2021). The Beauty Market in Southeast Asia: Tradition, Innovation, and Quality. 

Putera, Fajar. (2017). Pengembangan Kosmetik Asia.

Health Science Authority Singapore. Cosmetic Products.

Terima kasih telah membaca sampai di sini