Vietnam's Cosmetics Market Overview: Heavily Import-Driven with Korean Brands Leading
Vietnam’s cosmetics market remains highly dependent on imports. According to public statistics, in 2024, the market was valued at approximately $2.66 billion, with 90% of products being imported. Korean cosmetics dominate this segment, accounting for about 30% of imported sales. Brands like Innisfree and The Face Shop, which entered Vietnam in 2016 and 2005 respectively, are top performers. Other major sources of cosmetics imports include the EU, Japan, Thailand, and the U.S.
While Chinese cosmetics brands have gained momentum across ASEAN markets and are growing rapidly on Vietnam's e-commerce platforms, their overall market share in the beauty industry remains modest. Between January 1, 2023, and August 31, 2024, the combined sales of Chinese-produced cosmetics on Shopee, Lazada, and Tiki totaled about $38.81 million, representing just 1.46% of Vietnam’s 2024 cosmetics market. Moreover, Vietnamese consumers largely associate Chinese cosmetics with low prices, posing challenges for premium brand positioning.
Vietnam's Beauty Sales Channels: Distinct Online and Offline Structures
Vietnam’s beauty retail landscape reveals clear segmentation:
High-end Retail: Upscale malls like Trang Tien Plazaand LOTTE Center Hanoi feature luxury beauty counters, with prices comparable to or even higher than those in China.
Mid-range Chains: Popular beauty chain stores such as Sammi, Sociola, and Guardiandominate the mid-tier market, heavily featuring Korean brands. Typical product pricing:
Lipsticks: $13.80–27.60
Foundations: $16.55–34.50
Serums and creams: $16.55–34.50
Sunscreens: $20.70–24.80
Single-use masks: $0.40–1.10
In addition, products with higher unit prices are often accompanied by generous sample giveaways or included in “buy two, get one free” promotional offers.
Chinese brands have minimal presence in these chains, and those that do appear are usually priced much lower than their Korean counterparts.
Online Platforms: Shopee, Lazada, and Tikiare the leading e-commerce channels for cosmetics.
Pharmacy and Hospital Channels: These outlets mainly focus on dermatological and problem-solving skincare products.
Vietnam's Beauty Market Characteristics: Significant Growth Potential
Living and working in Hanoi reveals a city in transition. There’s a visible gap between high and low-income populations, yet the middle and affluent classes show strong consumption power. Infrastructure development is booming, and digital technologies like ride-hailing apps and mobile payments are widespread.
From a cosmetics industry perspective, Vietnam is entering a golden consumption era. A growing proportion of women with significant purchasing power points to a promising future for beauty brands.
Key Considerations for Entering Vietnam's Cosmetics Market
For international beauty brands planning long-term investment in Vietnam, it’s critical to go beyond simple product placement. Success hinges on:
Understanding Local Consumer Preferences
Building Strong Brand Identity and Premium Image
Ensuring Full Regulatory Compliance
REACH24H previously published a detailed analysis on Vietnam Cosmetics Notification Requirements, a must-read for brands looking to ensure smooth market entry. With a professional local compliance team based in Vietnam, REACH24H offers comprehensive regulatory support and strategic advice for cosmetics companies.
If you have any questions in this regard, please feel free to contact us at customer@reach24h.com.
