The Thai beauty industry is expected to grow this year, driven by rising consumer demand for more sophisticated products, with the sluggish economy unlikely to dent the sector, says Eveandboy Co Ltd, a Thai beauty retailer.
The Trade Policy and Strategy Office estimates the country's beauty industry was worth 281 billion baht in 2024, representing a 10% year-on-year increase.
Hiran Tanmit, chief executive of Eveandboy, said while Thailand's beauty market is still relatively small compared with other Asian nations such as Japan and South Korea, this presents significant growth opportunities.
He said consumers today are more knowledgeable about beauty products. Many prefer products with clearly stated ingredients, seeking those that meet their specific needs or provide them with solutions.
Brand loyalty has also become less rigid as consumers are now quicker to switch brands if they find alternatives that better meet their expectations, said Mr Hiran.
As a result, brands are launching new products more frequently, sometimes within the same year to keep pace with evolving consumer demands.
Beauty retailers must adapt quickly to these changing trends, he said.
Thai beauty brands have grown significantly since the coronavirus 2019 (Covid-19) pandemic, likely reflecting an openness among consumers to try new products, said Mr Hiran.
Despite the rise of online shopping, he insisted physical stores remain important, as consumers can test products, experience textures or scents, and identify items that match their skin types, which are advantages that online shopping cannot replicate.
Roughly 90% of the company's sales are generated from physical stores.
As of 2024, Eveandboy operated 40 stores, up from 22 at the end of 2023.
This year, the company is planning to open 25 more branches, bringing the total to 65 by year-end.
The expansion will target both Bangkok and the provinces, with new outlets located in shopping malls, community malls, and as standalone stores, said Mr Hiran.
The company is particularly interested in entering provinces where the brand is not yet established.
He said Eveandboy wants to operate 140 stores by 2028.
The company's sales reached 7 billion baht last year and it is targeting 30% growth in sales this year, said Mr Hiran.