Producers look to engage South Korea

Producers look to engage South Korea

The Industry Ministry's Thai Cosmetics Cluster forecasts the industry to surge by 10% to 280 billion baht as many players, mainly small and medium-sized enterprises (SMEs), have jumped into this red ocean market.

Lucksupha Prabhawat, the cluster's president, said the industry has had healthy growth the past decade, driven by consumer demand. The local industry was worth only 70 billion baht a decade ago.

"Some 90% of cosmetics producers are local SMEs, while 10% are large firms," she said. "About 168 billion baht, or 60% of industry revenue, is domestic consumption, while 112 billion goes to exports."

Mrs Lucksupha said Thailand ranks seventh for cosmetics manufacturing, making it the largest producer in Southeast Asia. The country has plenty of raw materials and experts, while also following high-quality manufacturing standards, she said.

The annual global value of the cosmetics industry equals 9.3 trillion baht.

The cluster seeks further partnership with South Korea, an important cosmetics maker, to beef up the cosmetics market in Southeast Asia, where demand is expected to grow by 10%.

The countries will co-host Bangkok Beauty Show 2018, a trade show, July 12-14 at Bitec.

The show is co-organised by Korea International Exhibition Center (KINTEX), an organiser of the K-Beauty Expo in South Korea.

Dominic Oh, director-general of KINTEX, said Thailand is a competitive market in Southeast Asia and has the capability to be the cosmetics hub of the region.

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