The EIC said the Thai beauty-supplements market now was worth about Bt14 billion, or 21 per cent of the total dietary-supplements market consisting of health and medicinal, beauty, and performance-enhancing supplements.
The past five years saw impressive growth in the beauty-supplements sector, with a compound annual growth rate of 12 per cent between 2011 and 2015. Top sellers include supplements for skincare and for weight loss. However, in 2016 and 2017, the market’s annual growth rate is expected to drop to 8-9 per cent, and it is likely to decline further.
The EIC expects more challenges ahead for the beauty-supplements market, as market saturation among the main consumer group – mostly teenagers and first-jobbers (under 30) – has almost been reached. Skin-brightening or lightening supplements are particularly popular among this consumer group, as they respond to general trends presenting healthy and fit men and women with bright and light skin tones.
However, this consumer group’s spending on dietary supplements has almost reached the ceiling, considered by the EIC to be Bt1,000 per month, reflecting relatively limited income. They also tend to be healthy, and therefore are not prioritising health supplements.
It is worth noting, moreover, that their number is going to drop. In 2011, they made up 40 per cent of the Thai population. In 2020, however, this age group is projected to make up only 35 per cent of the population, with signs of further declines in the future. The potential for growth of existing beauty products accordingly will be limited by the decreasing demand.
The more promising consumer group, professionals and middle-aged adults (older than 30), are more interested in health than beauty supplements. A survey of this group’s consumer behaviour reveals that the demand for beauty supplements drops in reverse proportion to the increase in age, as the demand for health supplements rises.
The most popular supplements among this group are products for health, brain functions and eyesight, in that order. Reasons include work-related stress, lack of rest, and eye strains from overuse.
This finding clearly indicates that this consumer group tends to become more concerned with health than with beauty as they age, corresponding with another result of the EIC’s survey: Regardless of gender, they are more inclined to exercise to stay healthy.
The survey further reveals that more than 45 per cent of supplement buyers among this age group are spending less than Bt1,000 per month on the products, although they have the potential to spend seven times that.
“We can surmise that today there is still no clear winner in the supplements market as there is no product that can fully satisfy the demand of this consumer group,” the EIC survey report said. “Future growth in the market therefore will depend on how much sellers can directly produce the right product to match customer needs.”
In the medium and long terms, the EIC recommends that sellers of beauty supplements prepare for future challenges and look for new opportunities for growth. If sellers still continue to offer the same old products, they will only face fiercer competition amid declining growth, since their main consumers like to try out new products and follow new trends, as can be seen in the current trend for natural-extracts supplements. For the continual expansion of their businesses, supplement sellers should try to reach consumers with high spending potential (older than 30). This group promises a bigger market, likely continual growth, and significant demand, the EIC said.