The Thai cosmetics market is expected to grow by around 10% this year, despite the country's economic challenges, says a Thai manufacturer, importer and distributor of cosmetics and beauty products.
"The market will be more competitive as new players join and introduce products," said Wongwiwat Theekhakhirikul, investment committee member and managing director of Karmarts Plc.
He said high household debt could impact consumer purchasing power, leading to challenges for the cosmetics industry.
However, cosmetics retailers are expected to expand their branches this year, reflecting sector growth despite a stagnant economy.
Mr Wongwiwat said the revival of the Thai tourism sector contributes positively to cosmetics market dynamics.
The company is enhancing brand awareness among both local consumers and foreign tourists through offline and online marketing, such as using out-of-home media in various tourist spots.
The company also sells its products at convenience stores, such as 7-Eleven, enabling it to tap into the foreign tourist market effectively.
Mr Wongwiwat said Chinese cosmetics companies benefit from economies of scale, which results in lower production costs per unit.
Many of these products cater to the Chinese market and are exported to Southeast Asian countries.
"In terms of economies of scale, we might face challenges competing in the international market," he said.
In addition, more cosmetics products from China are available in Thailand, particularly at local weekend markets, said Mr Wongwiwat.
He said that if the newly elected US president Donald Trump imposes trade barriers on Chinese goods, it could lead to an influx of Chinese products in Thailand.
"We would like the government to ensure fair pricing practices to help Thai entrepreneurs to compete," said Mr Wongwiwat.
Over a decade, the company has distributed its fighting brand products to maintain quality while reducing packaging costs to stay competitive against lower-priced and imported items.
Its Baby Bright products are priced from less than 100 to up to 200 baht.
Mr Wongwiwat said the company aims to increase its export sales so that they account for 15% of total sales by 2027, up from 12% in 2024.
The company plans to penetrate the US beauty market within five years and is considering product launches to meet diverse preferences in cosmetic colours in that market.
