The new coalition government is being urged to implement a consistent policy to support Thailand's beauty and wellness market over the long term.
Ketmanee Lertkitcha, chairwoman of the health, wellness and beauty industry cluster of the Federation of Thai Industries, said a national strategy needs to be established by the new government to promote the beauty industry, which alongside tourism contributes a vital portion of the country's income.
To ensure sustained growth of the country's beauty and wellness market, Mrs Ketmanee suggested engaging in soft power activities and identifying prime locations for local small businesses to showcase their health and beauty products. She used South Korea as a prime example of a country that has successfully supported its beauty industry.
Mrs Ketmanee said the global wellness economy was valued at 145 trillion baht in 2020 and is projected to reach 230 trillion by 2025. Thailand's wellness economy was valued at around 1 trillion baht in 2021.
Within the health, wellness and beauty industry, personal care and beauty accounted for 30%, while healthy eating, nutrition and weight loss represented 25%. Wellness tourism contributed 12%, while physical activity and traditional and complementary medicine each accounted for 10%. Public health, prevention, and personalised medicine represented 6%, while spas accounted for 4% of the industry.
Regarding the beauty market, Mrs Ketmanee, said the value of the global market last year was 648 billion baht, while Thailand's beauty market was valued at 246 billion baht.
She said the compound annual growth rate for Thailand's beauty market is 9.22%.
The growth of the local cosmetics market was largely driven by e-commerce, which captured 28% of the market and posted 8.9% growth in 2022. The e-commerce segment of the beauty market is projected to grow 13% this year.
Angel Fu, event director at Informa Markets, said Thailand has emerged as the fastest-growing beauty market in Southeast Asia. Numerous major international brands have already made investments in the Thai cosmetics market, said Ms Fu.
"Thailand has a lot of international brands with production capacity here, given the country's low production costs. Thailand also has a lot of original equipment manufacturers [OEMs] producing here," she said.
Francesca Donati, head of international marketing for Asia at BolognaFiere Cosmoprof, said Thailand holds a strategic position as a gateway to Asean.
She said the country's cosmetics sector accounts for 25% of the entire Asean region.
"Thailand has evolved into a prominent production centre for numerous international brands, offering products of exceptional quality at affordable prices. Moreover, Thailand boasts the largest beauty community of local OEMs/ODMs [original design manufacturers]," said Ms Donati, adding that Thailand is a vital hub for sourcing natural ingredients and raw materials in the beauty industry.