Vietnam is becoming a potential alternative for Korean cosmetics companies confronting sales challenges in China, as the demand for K-beauty products surges in the Southeast Asian country. Vietnamese consumers show a strong preference for Korean beauty products, with South Korea holding the largest market share in Vietnam’s imported cosmetics market.
According to the Korea Cosmetics Association, Korean cosmetics exports to Vietnam during the first five months of 2023 increased by 43.4%, reaching USD 187.5 million. This growth rate was the highest among all export destinations. In contrast, exports to China, the largest market for Korean cosmetics at USD 1.2 billion, slumped 25.7% during the same period.
While the Chinese market’s purchasing power poses challenges, long-term investment in Vietnam is seen as promising for Korean beauty brands. As Chinese sales declined significantly, K-beauty companies are seeking alternatives to recover their revenues. The rise of Korean beauty products in Vietnam is driven by several factors, such as the increasing popularity of K-content and the influence of social media, which have helped spread awareness and generate interest in Korean cosmetics.
In a survey conducted in Vietnam it emerged that 91.2% of respondents purchased Korean beauty products at least once in 2022, with over 60% indicating frequent purchases. Statista estimates that Vietnam’s cosmetics industry is projected to top USD 2.7 billion in 2024.
(Source: Korea Herald)