2024 Thailand Beauty Outlook
Return of OOH and climate change are driving consumer choices
Overall, Thai consumers have resumed their normal pre-pandemic activities. This means they’re going out more – whether to socialise, eat out with the family, return to work, or meet a client. The result has been a change in spending patterns. Consumers have cut back on food and beverages for consumption at home, with an 8.5% drop in volume in 2023, as well as home care products, which suffered a fall of 10.7%.
In parallel, they have begun to reprioritise personal care: consumption has grown 0.2% in 2023 following a decline of 5.4% the previous year.
Meeting more people in ‘real life’ has been a catalyst for Thai consumers to care more about their appearance, as well as a desire to boost their confidence.
To support long term growth, brands need to focus on meeting the needs of lives spent increasingly out and about. And the opportunities are not only there for facial beauty. While this was the first category to bounce back, others are now following. People are keen for their skin to look healthy, for example, so hand and body moisturisers are performing particularly well.
The drastic impact of climate change
Increasing temperatures and higher levels of pollution in Thailand are intensifying, and this is likely to continue. As people go out more, and are exposed to the potentially harmful effects, it becomes important for them to protect themselves against the impact.
Brands need to design a product portfolio that helps consumers respond to the everyday problems they are experiencing as a result of hotter weather and severe pollution levels. This demands innovation, naturally, but brands also need to educate shoppers in how products can support them – for instance through emphasising benefits such as added SPF, or a special formulation for sensitive skin.
Brands must be ready to challenge beliefs and expectations. For example, people may believe that using a body lotion when it’s hot isn’t a good idea. Skincare brands should focus on developing products that are light and fast absorbing, then back this innovation up with messaging that even in hot weather it’s important to strengthen the skin as a barrier against pollutants.
Help consumers to ‘do good’
In Thailand, 88% of people say they want to adopt a sustainable lifestyle, according to Alibaba’s Sustainability Trends Report 2023. Across Southeast Asia, being environmentally friendly, sustainable packaging, and no artificial or chemical ingredients are the most important product features.
However, there are a number of barriers preventing many consumers from turning this desire into action: a lack of information on what will truly make a difference, high cost, and limited product availability.
More than a third (38%) feel cynical about the underlying motivation behind ‘sustainable’ products, with only 15% saying they completely trust brands’ claims.
Brands can engage consumers by providing a greater assortment of products to meet demand. They will also build trust if they provide people with relevant information about which products will help them to act more sustainably, and telling a compelling story around why sustainable products might be more expensive to create a perception of value.
Developing products with a ‘feel good’ factor will help to win buyers – and then communicating the impact that using it will have, not only for their body, but for the planet, assuring them they’re doing something positive.
