Post-pandemic, many countries' beauty sectors have rebounded, presenting ample opportunities for skincare brands and manufacturers. Among the competition, Thailand stands out as a leading market in this resurgence.
According to the International Trade Administration, Thailand’s skincare market was valued at US$4.2 billion in 2022, with skincare leading at 60%, followed by hair care (20%), makeup (14%), and fragrances (6%), with projected 7% growth in 2023. Known for its unique blend of natural ingredients, cultural heritage, and innovation, Thai skincare has significant global expansion opportunities. However, exporting cosmetics comes with specific regional challenges.
Exploring key markets: opportunities for Thai skincare
As Thailand’s skincare products expand internationally, various regions offer distinct opportunities for growth. Forecasts predict a significant expansion of the Thailand cosmetics market, reaching a value of more than USD 10 billion by 2030. This growth is driven by a consistent annual increase of 5.0% since 2022. However, each market has its own preferences, challenges, and regulations that skincare or cosmetics exporters that supply beauty products from Thailand must consider before entering.
Middle East (UAE, Saudi Arabia, Qatar)
The Middle East’s beauty industry is booming due to a growing focus on self-care. Consumers are increasingly favoring natural and organic skincare—areas where Thai brands excel. Popular genres like face mask skincare and anti-aging solutions resonate with local demand for skin vitality.
However, to export cosmetics and skincare to the Middle East, understanding cultural nuances is essential. For instance, in the Middle East, halal certification plays a significant role, particularly in skincare for Muslim consumers.
North America (USA and Canada)
As the second-largest region in the global skincare market, North America is already a powerhouse for beauty and skincare, emphasizing scientifically-backed, high-performance solutions. However, this competitive landscape also presents opportunities for Thai cosmetic products.
With rising interest in skincare ingredients among health-conscious consumers, Thailand skincare business can capitalize on their strengths, like natural ingredients and traditional formulations, to meet the growing demand for clean beauty, vegan skincare, and multi-functional products.
Europe (France, Germany, United Kingdom)
European markets, particularly in France, Germany, and the UK, are mature but dynamic. Consumer preferences vary, but there is a shared demand for transparency in product labeling, sustainability, and a strong emphasis on natural ingredients. This presents a significant opportunity for Thailand’s skincare brands, which often utilize locally sourced botanical ingredients like herbs.
For Thailand cosmetics business, entering these markets requires effective storytelling. Emphasizing eco-friendly practices and Thai heritage ingredients can set brands apart in a competitive landscape.
Asia (China, South Korea, Japan)
Asia, particularly China, South Korea, and Japan, is a highly competitive and dynamic market for skincare products. The rise of K-beauty has set a high bar for skincare innovation and technology. Fortunately, this has also led to an increase in interest in Asian skincare brands. In 2022, Thailand exported US$67.3 million worth of beauty products to China.
As a lucrative market, China has a growing appetite for imported cosmetics, especially those focusing on skin health and anti-aging. Whereas South Korea, a skincare innovation leader, appreciates natural ingredients like lemongrass and jasmine. Japan, known for discerning consumers, values quality, innovation, and cultural alignment.
Strategies for Thailand skincare products to go global
To thrive in the international skincare market, businesses selling Thailand skincare products need to consider the best strategies for market entry, branding, and marketing. Tailoring approaches to suit different regions is key to building a global presence while staying true to the brand’s unique identity. However, before any marketing can be done, the product must first meet the standards and regulations set out by the Thai Food and Drug Administration (FDA). This includes proper labelling with accurate ingredient lists and clear packaging to build trust with consumers, ensure smooth customs clearance and avoid potential legal issues.
Market entry
For businesses that sell Thailand skincare products looking for market entry strategies to go global, options like distributorships, partnerships with local retailers, or e-commerce platforms provide different levels of market penetration. For instance, in regions like North America and Europe, forming partnerships with well-known beauty retailers or online marketplaces can help build credibility and expand market reach.
E-commerce also provides direct access to international consumers, especially in countries like China, where cross-border e-commerce is thriving. This model allows Thailand's skincare brands to maintain control over their branding while reaching a global audience.
Branding and marketing
Effective branding is crucial for expanding Thai skincare internationally. Highlight your products' unique blend of traditional Thai ingredients and modern science. Leverage consumer curiosity about product origins through compelling storytelling.
Additionally, adapt your packaging to meet specific market requirements. For example, the European Union's cosmetic regulations may necessitate product reformulation or repackaging. Ensure clear and accurate labels that include ingredients, net weight, country of origin, and necessary warnings.
Challenges and opportunities
Thailand's beauty and skincare exports account for approximately 40% of total production. In 2022, cosmetics, soaps, and acne treatment products exports reached a value of USD 3.25 billion, showcasing a 6.59% year-over-year growth. Projections for 2027 indicate a significant increase of USD 4.57 billion in the skincare segment, primarily fueled by the strong demand for sunscreen products.
While the opportunity to expand into global markets sounds promising, it comes with some hurdles. From navigating regulatory requirements to standing out in a competitive landscape, businesses that sell Thailand cosmetics products must prepare for the challenges that come with growth.
Regulatory landscape
One of the primary challenges for Thailand's skincare brands entering international markets is compliance with local export regulations imposed by the Thai FDA and import regulations in the destination country. These can involve specific labelling requirements, ingredient restrictions, or product testing standards. In regions like the Middle East, securing halal certification from recognized bodies such as the Halal Certification Services (HCS) is crucial for success. Navigating the regulatory landscape requires thorough research and, in many cases, partnership with local regulatory experts or distributors who are familiar with the process. Reliable logistics partners like DHL Express, with expertise in international shipping and customs clearance can be invaluable in ensuring compliance and avoiding costly delays or setbacks.
Competition
The global skincare market is highly competitive. Beauty products from Thailand must differentiate themselves in a foreign market to stand out among established international brands and emerging local players, such as emphasizing the key advantage: the use of natural, locally sourced ingredients. This aligns with the growing consumer preference for clean and sustainable beauty products.
Moreover, continuous innovation is essential for staying competitive in the global market. Thai skincare brands should invest in research and development to create new and innovative products that meet the evolving needs of consumers.
Logistics and shipping
One of the most significant challenges in Thailand’s skincare and cosmetics international shipping is ensuring smooth, reliable logistics. From face masks to moisturizers, it’s essential to ship skincare products safely. This involves knowing how to pack liquids for shipping, ensuring proper temperature control, understanding how to ship liquids internationally, and more, all to maintain their quality upon arrival.
As a trusted logistics partner, DHL Express offers expert guidance on international shipping standards. Our reliable services also include real-time shipment tracking and flexible delivery options, such as courier pickup services to meet your customers' needs. With DHL Express, you can ensure your skincare products reach your customers efficiently and compliantly.
Expanding the global reach of Thailand's skin care market
The global market offers enormous opportunities for Thailand’s skincare industry. As beauty consumers worldwide continue to seek out natural, effective skincare solutions, Thai brands are well-positioned to meet this demand.
To send international parcels with confidence, partner with DHL Express Thailand. With our efficient and reliable shipping solutions, you can elevate your Thai skincare brand on the international stage, and know your skincare products are always in good hands. Open a DHL Express business account today and experience the difference.
