Understanding Vietnam’s Beauty and Personal Care Sector: Strategic Insights for Market Entry

The Vietnamese beauty and personal care market continues to demonstrate robust growth, driven by a combination of strong economic recovery, rising consumer awareness, and the increasing influence of e-commerce and digital technologies. This article offers an in-depth examination of the current market landscape, key players, notable trends, and strategic considerations for foreign brands seeking to enter this dynamic sector.

Understanding Vietnam’s beauty and personal care market

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According to Statista, the Vietnamese beauty and personal care market is projected to reach a value of approximately US$2.74 billion by 2025, with an expected compound annual growth rate (CAGR) of 3.26 percent from 2025 to 2029. The market is characterized by a growing middle class, increasing disposable incomes, and a shift toward premium and sustainable products. The market includes a diverse range of products, including skincare, makeup, fragrances, personal care, and beauty technology.

The largest segment within the market is personal care, which is anticipated to reach a market volume of US$1.20 billion in 2025. Skincare products come in second, driven mainly by the increasing awareness of skincare among Vietnamese consumers, particularly within younger demographics.

Vietnam’s beauty and personal care market is undergoing a significant shift. While offline retail continues to lead, its share declined from 92 percent in 2018 to 81.2 percent in 2023, driven by reduced reliance on small local grocers. Health and beauty specialists, meanwhile, have been rapidly expanding their networks. For instance, Hasaki has opened 170 stores across 50 provinces, serving over one million consumers monthly. Watsons, with seven stores in Ho Chi Minh City and Can Tho, is strengthening its official brand presence on e-commerce platforms, while Guardian boasts 130 offline stores and is generating sales through six online channels. Many other well-known retailers are also investing in expansion, including Nuty Cosmetics, Cocolux, Beautybox, Matsumoto Kiyoshi, and others.

E-commerce platforms, particularly Shopee, Lazada, and TikTok Shop, have experienced rapid growth, now accounting for 18.8 percent of total sales. The popularity of livestreaming and official online stores reflects a broader shift toward trusted digital channels. Moving forward, market entrants and existing brands will need strong omnichannel strategies to remain competitive in Vietnam’s increasingly sophisticated consumer landscape.

Competitive landscape of Vietnam’s beauty sector

Vietnam’s beauty and personal care market remains dominated by multinational players, with foreign brands making up 90 percent of the total market share in 2019. Their competitive edge lies in brand strength, diverse offerings, and widespread distribution.

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According to OEC in 2023, Vietnam imports beauty products mainly from France (US$63.6 million), Singapore (US$62.6 million), Japan (US$47.1 million), the US (US$25.1 million), and Thailand (US$21.3 million). Notably, Singapore, Hong Kong, and China showed the fastest growth from 2022 to 2023, indicating a shift in regional supply chains.

While foreign brands dominate, local players such as Thorakao, Cocoon, and M.O.I Cosmetics are gradually gaining ground, particularly in the natural and affordable segments. However, they face challenges in competing with the established marketing strength and perceived quality of international brands.

Emerging trends shaping consumer behavior

Vietnam’s beauty and personal care industry is evolving rapidly, with shifting consumer behaviors and new retail dynamics shaping the competitive environment. Two emerging trends are particularly noteworthy for both local and foreign brands operating in the market.

Rising demand for natural and organic products

There is a growing preference for natural and organic beauty products in Vietnam as consumers are seeking options that are both skin-friendly and eco-friendly. According to data from Statista, the natural segment accounts for approximately 9 – 10 percent of the overall beauty and personal care market and has experienced a compound annual growth rate (CAGR) of around 2.5 percent from 2018 to 2023, with revenue reaching around $ 239 million in 2023. Many local brands have leveraged Vietnam’s natural resource advantages to produce products with locally sourced plant-based ingredients. For example, Cocoon uses ingredients like Dak Lak Province coffee and Hung Yen Province turmeric in its product lines.

This shift is driven by concerns over skin issues, such as allergies, sensitivities, and premature aging, which make natural products seem like a more appealing option compared to traditional ones. Additionally, younger generations, especially Millennials and Generation Z, care deeply about the environment. The expanding middle class in Vietnam also contributes to the rising demand for natural beauty solutions.

Growth of e-commerce and livestream shopping

E-commerce platforms like Shopee, TikTok Shop, and Lazada have become the go-to shopping channels for young consumers seeking discounts and exclusive deals. These platforms, especially TikTok, make it easy for loyal customers to shop directly from official brand stores or trusted retailers, offering convenience and special promotions. Many brands like Estée Lauder, Lancôme, Kiehl’s, Sulwhasoo, Ohui, and others have significantly increased their presence on e-commerce platforms, including Shopee, Lazada, and TikTok. These players promote compelling promotional programs, including buy-one-get-one-free offers and deep discounts ranging from 30 to 50 percent during their own live streams and those from key opinion leaders (KOLs). A common strategy among these brands is gifting mini product packs, which introduce consumers to a wider range of variants and encourage repeat purchases.

This trend highlights the growing importance of e-commerce and livestream shopping in Vietnam’s beauty market, fueled by influencer-driven marketing, value-focused sales, and the increasing role of livestreams in reaching consumers.

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Legal landscape for Vietnam’s beauty market

As Vietnam’s beauty industry has grown exponentially in recent years, it has attracted numerous foreign investors eager to tap into this emerging market. However, beauty sellers now face intense competition, not only from new market entrants but also from counterfeit products. Vietnam is strongly promoting laws and enforcement to fight against counterfeit goods, aiming to create a fair and safe business environment for all players, including foreign brands, and protect consumers from counterfeit products.

In May 2025, the Vietnamese government issued Official Telegram No. 65/CD-TTg, signed by the Prime Minister on May 13, launching a nationwide campaign to crack down on smuggling, trade fraud, and counterfeit goods. Running from May 15 to June 15, the campaign aims to intensify inspections, identify violations, and ensure strict legal enforcement, with a focus on both domestic and imported counterfeit goods.

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In addition, the Ministry of Health is also revising regulations on cosmetic management. A draft decree, intended to replace Decree No. 93/2016/ND-CP, is currently open for public consultation. Under the proposed changes, all cosmetic products on the market must be proven safe for human health when used as directed, in line with labeling, formulation, and usage instructions. Moreover, product owners or manufacturers will be required to assess the safety of each product following the ASEAN Cosmetic Safety Assessment Guidelines.

Vietnam’s strengthened legal framework and enforcement efforts highlight the government’s commitment to protecting brand integrity and consumer safety. Understanding these laws and ongoing enforcement trends is essential for any brand planning to enter or expand in Vietnam’s beauty market.

Considerations for foreign brands

The Vietnamese beauty and personal care market presents significant opportunities for foreign brands. However, several key factors should be considered to navigate this market successfully, including

• Comprehensive market research: Vietnamese consumers are increasingly knowledgeable and prioritize products with natural, organic, and sustainable ingredients.
• Partnering with KOLs and beauty influencers: Brands should carefully select KOLs whose values and audience align with their positioning to build credibility and avoid reputational risks.
• Competitive pricing strategy: Offering diverse pricing tiers, including premium to budget-friendly, can meet the expectations of both quality-driven and cost-conscious consumers.
• Local partnership and omnichannel presence: Collaborating with major e-commerce platforms and trusted local beauty retailers enhances visibility, distribution, and consumers’ trust.

It is also advisable to consult third-party legal or business advisors to conduct due diligence on potential partners and to understand the laws and procedures related to the beauty and personal care industry in Vietnam.

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