Cosmetics exports could grow from 140 billion baht annually to 200 billion by 2020 with help from the government to expand their reach, says the Thai Cosmetic Manufacturers Association (TCMA).
Euromonitor International, a London-based market intelligence firm, said Thailand's cosmetics and toiletry industry generated revenue of 210 billion baht last year, with exports making up 43% or 90 billion baht.
While exports rose by an average of 18% a year from 2008-12, the TCMA expects shipments to grow by 10% this year to 99 billion baht due to the strong Thai currency and slowing economies in Asean, Japan and Europe, said president Ketmanee Lertkitcha.
If border trade is included, the figure should be 140-150 billion baht, eventually reaching 200 billion baht by 2020.
"In order to reach that goal, the government needs to help us with marketing by regularly holding international exhibitions," said Mrs Ketmanee.
"If we don't advertise our products very well, we won't be able to compete with countries such as South Korea. But if we can, our product quality is definitely better than theirs."
Thailand is the top cosmetics exporter in Asean, with 37% of shipments going to markets in Southeast Asia, 30% to Japan, 5% to Europe, 5% to Australia and 23% to elsewhere.
The TCMA is promoting new export markets such as the Philippines, India and the Middle East.
Indonesia, focusing on herbal cosmetics, is the fiercest competitor against Thai products.
But Thailand has more than 300,000 herbs, and studies should be conducted on what kind of physical effects they have, said Mrs Ketmanee, who is also vice-president of the Asean Cosmetics Association and managing director of K.O.P. International Co.
Meanwhile, Thailand's cosmetics laws and regulations should coincide with the Asean Cosmetics Directive, she said.
Addressing a TCMA event yesterday, Prime Minister Yingluck Shinawatra said the government will speed up legislation for parliamentary consideration and support patent registrations, promote tax incentives and increase research and development for the industry.
Mrs Ketmanee said a group should be set up to help businesses register for global patents.