Health & Beauty

Compared to the mature but gradually saturated markets in Europe and America, international cooperation in the cosmetics industry in the RCEP region has more potential for China.

It is estimated that the countries and regions covered by RCEP account for over 40% of the global cosmetics market share. According to customs data, in 2022, China imported 9.206 billion US dollars in cosmetics from other RCEP member countries, accounting for 41% of China's total cosmetics imports; According to customs data, the amount of cosmetics exported from China to other RCEP member countries is 1.506 billion US dollars, accounting for 26% of China's total cosmetics exports.

To help domestic cosmetics companies seize the opportunities of RCEP, the China Chamber of Commerce for Import and Export of Medical and Health Products has formed an RCEP cosmetics market research report based on data collection, industry discussions, enterprise research, and expert consultation. The ASEAN part of the report was released at the 2023 China Cosmetics International Cooperation Forum.

The report points out that the ASEAN cosmetics market is expected to exceed 300 billion US dollars by 2025. Among them, markets such as Indonesia, the Philippines, Thailand, and Vietnam all have high growth potential and are worthy of special attention from Chinese enterprises.

Indonesia, with the highest GDP in ASEAN and the fourth largest population in the world, is a major consumer of daily necessities. According to customs data, in 2022, China exported $162 million in cosmetics to Indonesia, almost doubling from $82.14 million in 2021. Young people in Indonesia have a strong interest in natural and organic products, and the market potential of male cosmetics is great. At present, the rapidly growing Indonesian cosmetics market has not yet formed a leading brand, and the market has a high acceptance of brand entry, which is a good opportunity for Chinese enterprises.

ASEAN countries are located in the tropics, with sufficient sunshine, and whitening products are very popular. Local consumers use a large amount of body lotion, facial mask and hair removal products. In terms of demand for beauty products, skin care, cosmetics and personal care products have a broader space for growth. perfume products are more suitable for sales in Vietnam and other countries that have opened land transportation due to air transport restrictions. The proportion of local young people is significant, and due to the influence of global beauty trends, there is a high demand for European, American, Japanese, and Korean style products.

According to customs data, in 2022, China exported $920 million in cosmetics to ASEAN, accounting for approximately 16.1% of China's total cosmetics exports. Among them, the largest export volume of beauty and skincare products reached 367 million US dollars, a significant increase of 82.8% year-on-year; Other personal care products ranked second with an export value of 335 million US dollars, achieving double growth; The export value of hair care was 100 million US dollars, a year-on-year increase of 26.8%; The export value of oral care products was 92.21 million US dollars, a year-on-year increase of 62.3%; The export volume of perfume was US $18.9 million, up 70.9% year on year.

The report points out that the languages, cultures, customs, currencies, and religious beliefs of ASEAN countries are diverse. Overseas enterprises need to overcome cultural barriers, product barriers, channel barriers, and marketing barriers, accurately understand and grasp the cultural specificity of the target market, pay attention to the trends of the target market, and align with user habits to position and select products accurately. Moreover, ASEAN is in a period of traffic dividend, and enterprises need to make good use of cross-border e-commerce channels and emerging local retail models such as "enjoy first, pay later" to expand the market.

The consumption level in the ASEAN market is not high, and there is a high demand for affordable and low-priced goods. However, the report also reminds enterprises to pay attention not only to cost-effectiveness, but also to product quality and research and development investment, explore segmented tracks and market gaps, and achieve breakthroughs in homogeneous competition with product strength and brand strength.