Thailand urged to boost beauty and wellness market for long-term growth
Thailand’s new coalition government is being encouraged to adopt a consistent policy to support the nation’s beauty and wellness market over an extended period.
Ketmanee Lertkitcha, the chairwoman of the health, wellness and beauty industry cluster of the Federation of Thai Industries, highlighted the need for a national strategy to promote this sector, which, along with tourism, plays a crucial role in the country’s economy.
Ketmanee proposed the implementation of soft power activities and the identification of prime locations for local small businesses to showcase their health and beauty products. She cited South Korea as an excellent example of a nation that has effectively supported its beauty industry.
The global wellness economy was valued at 145 trillion baht in 2020 and is expected to reach 230 trillion by 2025. In 2021, Thailand’s wellness economy was estimated to be around 1 trillion baht.
In the health, wellness and beauty sector, personal care and beauty accounted for 30%, while healthy eating, nutrition and weight loss made up 25%. Wellness tourism contributed 12%, with physical activity and traditional and complementary medicine each accounting for 10%. Public health, prevention, and personalised medicine represented 6%, and spas made up 4% of the industry.
Regarding the beauty market, Ketmanee stated that the global market value last year was 648 billion baht, with Thailand’s beauty market valued at 246 billion baht. The compound annual growth rate for Thailand’s beauty market is 9.22%.
E-commerce, which accounted for 28% of the market and recorded 8.9% growth in 2022, primarily drove the growth of the local cosmetics market. The e-commerce segment of the beauty market is predicted to grow by 13% this year.
Angel Fu, event director at Informa Markets, pointed out that Thailand has become the fastest-growing beauty market in Southeast Asia. Several major international brands have already invested in the Thai cosmetics market, according to Fu.
“Thailand has a lot of international brands with production capacity here, given the country’s low production costs. Thailand also has a lot of original equipment manufacturers [OEMs] producing here.”
Francesca Donati, head of international marketing for Asia at BolognaFiere Cosmoprof, emphasised Thailand’s strategic position as a gateway to Asean. The country’s cosmetics sector accounts for 25% of the entire ASEAN region.
“Thailand has evolved into a prominent production centre for numerous international brands, offering products of exceptional quality at affordable prices. Moreover, Thailand boasts the largest beauty community of local OEMs/ODMs [original design manufacturers].”
