<p><span style="color:#ffffff;"><b>The opportunities</b><br><b>for brands as consumers’ needs change</b></span></p>
<p><span style="color:#ffffff;">Supplement sales have continued to rise in Thailand post-COVID, as people focus on strengthening their inner health and wellness.</span></p>
The opportunities for brands as consumers’ needs change
At Worldpanel, we’ve been closely observing Thailand’s Health & Beauty (H&B) Supplement market, and the behaviour of consumers in this category, for two decades. During this time the market has fragmented in terms of brands, segments, and variants, while low investment costs and uncomplicated licensing with OEMs has created a favourable climate for brands to enter and expand. The H&B Supplement market has grown strongly across many dimensions, gaining more value, more buyers, and more players.
Why is consumer
behaviour changing?
An aging society, rising health trend, and the COVID-19 pandemic have driven Thai consumers to start spending on supplements, and penetration has continued to grow after the pandemic.
As everything returned almost back to normal after lockdown, people began to enjoy life outside of the home, going back to the gym or the office for example. These behaviours are changing people's needs in terms of the benefits they expect from the products they buy. They still care about their health, and are keen to boost their immunity and general wellbeing. They’re also focusing less on skincare benefits, and becoming more interested in protein and body care.
<p><span style="color:#ffffff;"><b>Who are </b><br><b>the buyers?</b></span></p>
<p><span style="color:#ffffff;">Households in urban areas,<br>older families and the ‘silver’<br>generation offer significant<br>growth potential.</span></p>
Through Kantar Worldpanel’s Household Panel (HHP) sample in Thailand, we collect profiles of each household – including the number of members, intended user, and household income. From this, we can see that the number of households moving to urban areas has risen in 2022 compared with 2021, due to an aging population.
Looking at the demographic profile for shoppers in the H&B supplement category, we’ve been able to identify four key criteria to help brands focus on the right target consumers.
We’ve observed growth across every region except for the south, where spend on supplements is lowest, and continues to decline every year. The greatest opportunity for brands can be found in Greater Bangkok, where consumption and spend are highest.
<p><b>What are the real consumer needs in Thailand’s supplement market?</b></p>
<p>Enhancing immunity and getting a protein ‘hit’ are gaining in importance, while skincare is less<br>of a priority. Powder formats are soaring in popularity.</p>
What are the real consumer needs in Thailand’s supplement market?
Product benefits
Through analysing Kantar’s data we can identify 10 key benefits, as claimed by brands or manufacturers about their products, segments, and/or variants.
Looking at value share of the market for each benefit, we see that general wellbeing and immunity are the biggest priority for consumers in Thailand. However, protein and immunity have risen in importance over the past year, while skincare and eyecare benefits have declined.
Protein and Body care
Following the COVID-19 lockdown, as people started to work, exercise and take part in activity outside the home again, protein and body care benefits started to rebound.
Skin
The importance of skin and beauty benefits started to drop after the end of lockdown. However, these remain the second most popular benefit in the market, as most products come in powder format that can be produced in affordable and convenient small pack sizes or sachets.
General wellbeing and immunity
Nowadays, Thai people care more about their health; a trend that was accelerated by COVID-19. General wellbeing and immunity are still the first things that come to people’s minds when they think about buying supplements.
Eye care
This became a popular benefit once people started working from home under lockdown, but interest has declined since they went back to the office.
These insights demonstrate that Thai people still care about their health, post-pandemic, and are sticking with the supplement category, but they are changing the benefits they desire to match their lifestyle as it returns to normal.
Product segments
When we look at product formats, powder is a fast-rising trend and has the highest value share overall, with a particular importance in the protein benefit segment. Tablets remain a major format, however, particularly in the vitamin and immunity segments.
So, what’s driving market growth? Powder is an extremely flexible format which can be used across every benefit, and made available in sachets, a popular pack size that is effective in attracting new consumers to brands and categories. Capsules and tablets, meanwhile, are easy to consume, store, and carry. Liquid format is not doing so well in Thailand as it’s hard to store and consume on the go, and has a short shelf life.
This report gives you an overview of the key points and findings uncovered through Kantar Worldpanel’s ongoing analysis of Thailand’s H&B supplement market. We can take you on a deeper dive to understand consumer behaviour, with insights from our services and expertise that span more than 20 years in Thailand and 66 years globally.
