Vietnam’s beauty and personal care industry is showing strong momentum, fueled by a recovering economy, rising consumer sophistication, and the accelerating impact of digital platforms. This article explores the evolving market dynamics, standout players, emerging trends, and key strategies for international brands eyeing this fast-changing landscape.
Recent data from Statista projects the sector will reach approximately US$2.74 billion by 2025, with a compound annual growth rate (CAGR) of 3.26% expected between 2025 and 2029. This upward trend is supported by a burgeoning middle class, growing discretionary income, and heightened interest in high-end and eco-conscious products. The category spans skincare, cosmetics, fragrances, personal hygiene items, and emerging beauty tech.
Personal care is currently the largest segment, projected to hit US$1.20 billion in value by 2025. Skincare follows closely, bolstered by the growing popularity of skin wellness routines—especially among younger Vietnamese consumers who are increasingly prioritizing skin health.
The retail landscape is undergoing transformation. While brick-and-mortar sales still dominate, their share has slipped from 92% in 2018 to 81.2% in 2023, largely due to changing consumer habits and the decline of neighborhood stores. Meanwhile, health and beauty chains are scaling quickly. Hasaki, for instance, now operates 170 outlets across 50 provinces, reaching over a million customers monthly. Other players like Watsons, Guardian, Nuty Cosmetics, Cocolux, Beautybox, and Matsumoto Kiyoshi are expanding aggressively both offline and online.
E-commerce platforms, led by Shopee, Lazada, and TikTok Shop, now account for 18.8% of total sales, boosted by the rise of livestream shopping and the growth of verified brand stores. This marks a pivotal shift toward more credible and convenient digital buying channels.
To thrive in this increasingly mature market, both new entrants and existing brands must adopt robust omnichannel strategies, blending physical retail with digital innovation to meet the expectations of today’s discerning Vietnamese consumers.
