With the rise in entertainment and tourism, Thailand’s beauty sector is becoming more dynamic than ever. More companies are investing and expanding their operations in this lucrative market, aiming to capture a larger share of the growing demand.“The Thai beauty market is currently undergoing change, creating substantial opportunities for personal care and beauty brands,” Chivanon Piyaphitakskul, senior marketing manager at Kantar Worldpanel Division, told Inside Retail. “The market is experiencing a revival, especially as consumers return to pre-pandemic lifestyles, which has shifted their spending patterns towards beauty products.”This evolving consumer behaviour and the resulting market dynamics make it an exciting time for both existing players and new entrants in the industry.Expansion ramped up Betting on the rise of affluent customers, Estée Lauder-owned luxury skincare brand La Mer opened its first Thailand flagship store in Beauty Galerie in Central Chidlom, bringing its number of points-of-sale in the country to 21 last month.Meanwhile, Hermès Beauty, operated by Central Marketing Group (CMG), has opened six locations across the country since entering the market in late 2022. CMG also introduced L:A Bruket to the market last year, which now has two locations in the country. Thailand is the only Southeast Asian country where the Swedish brand has a presence. The Thai retail conglomerate aims to achieve sales growth of more than 20 per cent from beauty products this year.Thailand has seen several South Korean brands debut this year, including Amorepacific’s derma beauty brand Aestura and makeup label Jung Saem Mool.“While the entry of South Korean brands has intensified competition, the Thai beauty market is not yet oversaturated,” Piyaphitakskul said. “There remains significant potential for growth.”Earlier this year, Thailand’s e-commerce beauty platform Konvy, which develops and manufactures beauty products for tropical climates, secured US$11 million in the second round of its Series A fundraising. The Thai beauty startup opened its first physical store last year.Meanwhile, Watson Thailand is also ramping up its expansion, aiming to open 50 new stores this year.The influx of new brands has prompted existing players to step up their game, leading to a dynamic and competitive market landscape.According to the Thai Cosmetic Manufacturers Association, the beauty industry is growing steadily with a value exceeding 300 billion baht (US$8.5 billion). The makeup segment accounts for 12 per cent of the market.The cosmetics industry – dominated by local beauty giants such as Mistine and Kmart – ranks as one of the top five sectors contributing to Thailand’s GDP and was valued at US$6.6 billion in 2022, according to Euromonitor.Consumer interest and social media influenceThailand’s recent boom in the entertainment industry has fueled the growth of many other sectors, including beauty, further amplifying the popularity of Thai brands inside and outside the country. This surge has been instrumental in opening up new markets and opportunities for Thai products. Influencers have been key in driving trends and consumer preferences, especially among younger audiences who are highly active on social media and are quick to follow the latest trends.“They provide brands with a platform to reach a wide audience quickly and effectively, creating strong brand awareness and trust,” Piyaphitakskul remarked. “Collaborations with popular local figures can significantly boost a brand’s credibility and appeal. As Thai consumers are highly engaged with social media, influencers’ endorsements can lead to the rapid adoption of new products and trends, making them an indispensable part of any beauty brand’s marketing strategy in Thailand.”The Thai beauty expert said there is still significant room for growth in this market, especially for brands that can innovate and meet the evolving needs of Thai consumers. “Opportunities lie in addressing the impacts of climate change, such as through products with UV protection or pollution defence, and catering to the growing demand for sustainable and functional beauty products. Additionally, demographic shifts, such as the rise of the silver generation and the unique preferences of Gen Z, present new avenues for targeted product development,” he said. Piyaphitakskul said to differentiate in Thailand’s crowded beauty market, brands need to focus on innovation, sustainability, and personalisation. Developing products that address specific local concerns, such as protection from pollution and sun damage, can help brands stand out. “Additionally, leveraging technology and social media to engage with consumers, especially among digitally savvy Millennials and Gen Z, is crucial. Brands can also differentiate by offering transparent, science-backed products that build trust, and by emphasising unique ingredients or formulations that cater to local beauty ideals and preferences,” he added. Continued evolvement Piyaphitakskul expects the Thai beauty industry to retain its growth in the coming years. The return of out-of-home activities will keep driving demand for personal care and beauty products, particularly those offering protection against pollution and sun damage, while climate change will further influence product innovation, pushing brands to develop solutions that address skin concerns related to heat and pollution. Sustainability will also become increasingly important, with consumers demanding more environmentally friendly products and packaging. “The market will also see a rise in premiumisation as the silver generation increases its spending on beauty products. Brands that stay ahead of these trends and innovate accordingly will thrive,” he concluded.