COSMETICS TREND Mrs. Ketmanee Lertkijja Chairman, Cosmetics Industry Club Federation of Thai Industries
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1 COSMETICS TREND 2012 Mrs. Ketmanee Lertkijja Chairman, Cosmetics Industry Club Federation of Thai Industries
2 CONTENTS o Cosmetic Trade: ASEAN/World o Cosmetic Market: Thailand o Thailand competitiveness (Diamond model) o Cosmetic Trend 2012
3 THAILAND IS THE NO.1 COSMETIC EXPORTER IN ASEAN (YR2011: EXPORTS 1.8 BILLION USD) WITH DOUBLE DIGIT GROWTH EVERY YEAR OR +19% DURING MAINLY EXPORTS SKIN CARE, HAIR CARE AND ORAL CARE. MORE THAN 40% SUPPLIES TO ASEAN, FOLLOW BY JAPAN, AUSTRALIA, KOREA US, UAE. AND ALSO BE RANKED THE SECOND WORLD LARGEST OF HAIR CARE WITH VALUE $50MMUSD (YR 2010). MEANWHILE, SPA PRODUCT EXPORTS CONTRIBUTES FOR MORE THAN 58 MILLION USD (YR 2008).
4 TRADE BALANCE : ASEAN/WORLD Million USD 2,000 1,500 World trade exports trade balance million USD 1, ASEAN trade exports 1, Imports Trade balance imports Ref: Department of Negotiation, Min of Commerce
5 COSMETICS TRADE 2011 : ASEAN/WORLD Ref: Department of Negotiation, Min of Commerce Export countries 2011 Import countries 2011 Other Other 26.8% Australia 6.4% Japan 24.4% ASEAN 42.4% China 5.9% 10.9% Japan 13.3% ASEAN 18.0% EU 31.6% US 20.3% Total Export $1,771 million USD Total Import $559.7 million USD
6 ASEAN MARKETS Countries Exports 2011 Values (million USD) Indonesia Philippines Malaysia Cambodia 88.3 Myanmar 58.0 Singapore 54.6 Vietnam 52.8 Laos 33.2 Brunei 0.9 ASEAN trade World trade 1,771.3 Countries IMPORTs 2011 Values (million USD) Indonesia 43.8 Malaysia 29.2 Philippines 12.6 Vietnam 9.6 Singapore 3.0 Myanmar 0.1 ASEAN Trade 98.3 World Trade Ref: Department of Negotiation, Min of Commerce
7 THAILAND MARKET Ref: Euromonitor International billion THB (yr 2010) Premium (20%), Mid-tier (50%), Low-tier (30%) Men s grooming (6 billion THB), 10-20% growth Skin Care (26%),Hair Care (27%), Soap & Bath (22%), Oral care (8%), make up (8%), others (9%)
8 THAILAND COMPETITIVENESS DIAMOND MODEL Uniqueness of Herb cosmetics & spa Competitors from Japan, Competitiveness Korea, China, India & Strategies Demand Supply Biodiversity with high Std consistency Increase of aging society Demand of Nat & Healthy products Relative industries Cluster for Herbs Growing in Spa/Medical tour/fashion/packaging/ Design/Advertising Governments Investment promotion: BOI, AEC/ FTAs, Asia Hub Strategies, Exports promotion: Academic R&D, GMP promotion, lab certification.
9 COSMETICS TREND 2012
10 Key Drivers: Biodiversities of Natural herbs Unique local culture and wisdom. Advance technologies and Value creation. 60% Aging society mostly in Asia, or 1 out of 4 of Thai population are elderly in 2027, with 2x spending in healthy product. Ref: Human Population: Fundamentals of Growth, Population Reference Bureau 2002
11 Economic Recovery Drives Beauty and Personal Care Spending in new luxury products includes fragrance, highly effective anti-aging, whitening products, professional salon products etc. A significant rising of Social media boots up demand of mass cosmetics includes make ups, hair colorants, nails etc which teenagers are influenced by social friends, celebrities, fashion, bloggers, entertainment. The potential Male s Grooming products, Thai Male are becoming increasingly interested in health and appearance due to the influence of the media and social changes. Thais are concerning and seeking for Environmental friendly cosmetics & Natural herbs for their skin, hair, nail, body and balancing their body & soul in spa environment.
12 Whitening & Anti-Aging Cream have been growing strongly 7-9% with share of 53% and 34% respectively of 1 billion THB skin care market Hottest BB cream and CC cream become popular in Korea/Asia for allin-one cream for natural glow looking, influenced by celeb & make-up artist. (BB=Blemish Balm, CC= color controller)
13 Thai Metro-sexual trend is increasingly with 4-5x growth, or 10% share of total skin care. Thai men are becoming increasingly concerned with Health & Appearance. They are seeking for more skin care designed for men, specific benefit such as anti-aging, energizing and acne control.
14 Thank you
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