The Vietnamese cosmetics market has enjoyed constant growth in recent years thanks to rapid economic development and a large young population. The market is growing at more than 8% annually and is dominated by international brands. There are approximately 400 cosmetics businesses, of which 100 are foreign but account for 90 percent of sales. South Korea is the leading cosmetics supplier to Vietnam, but there are also many famous Western brands such as Esteé Lauder, Lancome, Bobbi Brown, Fendi, Lower, Clairins, L’Oreal and so on. Major producers in this market are L’Oréal, Unilever, Procter & Gamble and Beiersdorf.
The average Vietnamese spends around of VND 300,000 (USD 13) per month on cosmetics, which is quite lower than neighboring Thailand (USD 38). However, the Vietnamese market is set to expand strongly over the next years. Importantly, the Vietnamese middle class, the most important buyer of cosmetics, is set to grow to 33 million by 2020, creating new opportunities for the market.
(Sources: Vietnam News; Nielsen)