Beauty with a Thai touch
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Beauty with a Thai touch

Local cosmetics firms and state agencies are increasingly recognising the potential for Thailand to emerge as a trendsetter in the global beauty arena

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In 2023, Thailand had 4,735 cosmetics manufacturers, with 98% categorised as micro or small enterprises, according to TPSO.
In 2023, Thailand had 4,735 cosmetics manufacturers, with 98% categorised as micro or small enterprises, according to TPSO.

In Thailand's competitive beauty market, consumers have easy access to skincare products and cosmetics from Japan, South Korea and Western countries at local beauty retail shops.

The popularity of these international brands highlights beauty trends that resonate with many Thais, reflecting the standards set by these nations.

However, Thai cosmetics producers and government agencies are increasingly recognising the potential for Thailand to emerge as a trendsetter in the global beauty arena.

By promoting "T-Beauty" both at home and abroad, they aspire to elevate Thai beauty products on the global stage, thereby lifting the economy.

Poonpong: Use local ingredients

Poonpong: Use local ingredients

Understanding T-Beauty

Wongwiwat Theekhakhirikul, investment committee member and managing director of Karmarts Plc, defines Thai beauty or "T-Beauty" as Thai skincare, cosmetics and perfume products that are influenced by South Korean and Japanese trends, with Thai cultural elements and ingredients.

The unique characteristics of T-Beauty products are their quality ingredients and long-lasting performance, he said.

Mr Wongwiwat said this long-lasting quality comes from the efforts of Thai cosmetics manufacturers to develop products that can endure Thailand's hot and humid climate, helping to build a reputation for the durability of Thai cosmetics.

Mr Wongwiwat says the unique characteristics of T-Beauty products are their quality ingredients and long-lasting performance.

Mr Wongwiwat says the unique characteristics of T-Beauty products are their quality ingredients and long-lasting performance.

Trade figures

The Thai cosmetics sector has experienced remarkable growth, gaining favour among both domestic and foreign consumers, said the Trade Policy and Strategy Office (TPSO).

The global cosmetics trade, which includes perfumes, makeup, skincare, hair care, oral hygiene products, shaving products and soap, reported an export value of US$153 billion in 2023, up 7.63% year-on-year.

The world's top three exporters were France, the US and Germany.

Thailand's export value ranked 18th, valued at $2.59 billion, up 9.58% year-on-year, according to TPSO.

The report found the Thai cosmetics industry thrived thanks to global trends, the recovery of the country's tourism sector and booming e-commerce in 2023.

Thailand is a prominent cosmetics production base in the region, ranking No.2 behind Singapore, noted TPSO.

The top three export markets for Thai cosmetics in 2023 were Japan at $342 million, the Philippines ($268 million) and Australia ($245 million).

The rising popularity of T-Beauty could influence the fortunes of small cosmetics manufacturers, according to some industry leaders.

In 2023, Thailand had 4,735 cosmetics manufacturers, with 98% categorised as micro or small enterprises, according to TPSO.

Most manufacturers distribute their products in both local and international markets. Domestic sales accounted for more than 60% of total sales in 2023.

Achara Umpujh, chairwoman of the National Soft Power Development Subcommittee for Fashion, said the T-Beauty trend on the global stage could increase the income of Thai farmers who cultivate herbs used in cosmetics and skincare products.

The subcommittee gathers data to formulate policies, plans and guidelines aimed at promoting and developing the fashion sector, which includes apparel, crafts, beauty and jewellery. The panel plans to collaborate with the Department of Thai Traditional and Alternative Medicine under the Public Health Ministry to identify key ingredients and promote the use of Thai herbs in cosmetics, she said.

Thailand is a prominent cosmetics production base in the region, ranking No.2 behind Singapore, according to TPSO.

Thailand is a prominent cosmetics production base in the region, ranking No.2 behind Singapore, according to TPSO.

Lifting competitiveness

Poonpong Naiyanapakorn, director-general of TPSO, said the Thai cosmetics industry needs to strengthen its capabilities to compete more effectively in Asian markets. The office recommended using local ingredients and promoting this feature to global customers.

Furthermore, cosmetics producers should secure patents for new product formulas and register trademarks and logos to protect against infringement and counterfeiting, noted TPSO.

The office suggested operators enhance their presence via online and offline distribution channels, participating in trade shows and fairs to increase opportunities for business matching with potential foreign partners.

TPSO highlighted promising new export markets, such as the Middle East, where consumers often share similar skincare preferences based on comparable climates. The office also encouraged intensified R&D efforts, learning from case studies by global market leaders that can minimise reliance on imported components.

Ms Achara says the T-Beauty trend on the global stage could increase the income of Thai farmers who cultivate herbs used in cosmetics and skincare products.

Ms Achara says the T-Beauty trend on the global stage could increase the income of Thai farmers who cultivate herbs used in cosmetics and skincare products.

Brightened outlook

Mr Wongwiwat proposed the government bolster soft power policies, prioritising the Thai cosmetics market.

Despite government efforts to promote soft power through films, TV series, fashion and cosmetics, the public primarily associates Thai soft power with local textile products, he said.

Recognising the media's potential to highlight Thai culture and products, Mr Wongwiwat urged the government to facilitate the export of Thai content to foreign audiences. Thai cosmetics brands could showcase their cultural heritage alongside T-Beauty products, attracting foreign attention from media coverage, he said.

Karmart's export revenue growth would benefit from the Thai media's promotion of local culture to foreign markets, said Mr Wongwiwat. He urged the government to encourage companies to participate in trade fairs and exhibitions abroad.

In addition, more free trade agreements are needed, with discussions of tax frameworks that will support Thai cosmetics exports, said Mr Wongwiwat.

Ms Achara said marketers need to craft memorable and distinctive storytelling for T-Beauty and fashion items to enhance their value, leveraging influencers to build public recognition.

"If Thai cosmetics producers collaborate and the government supports small entrepreneurs and promotes products to foreign customers, we can elevate T-Beauty products globally," she said.

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