This has led to more demand for premium skincare products.
A rising purchasing power is boosting Thailand's cosmetics & toiletries industry, which is projected to grow from $6.15b (฿194.2b) in 2019 to $8.57b (฿259.5b) in 2024, according to GlobalData. This translates to a compound annual growth rate (CAGR) of 6%.
In the industry, the skincare sector recorded the largest value sales of $2.56b (฿80.8b) in 2019.
"Increasing consumer purchasing power is leading to growing demand for high quality skincare products that help address unique consumer concerns, which is contributing to growth in the sector," GlobalData's consumer analyst Anchal Bisht said.
However, the feminine hygiene sector is forecast to register the fastest value growth at a CAGR of 7.3%, closely followed by makeup and skincare sectors which are projected to grow 6.3% and 6.2%, respectively.
The value share of Thailand in the global cosmetics & toiletries industry is expected to grow from 1.3% in 2019 to 1.4% by 2024. Similarly, the country’s share at regional level is expected to expand from 3.5% in 2019 to 3.6% by 2024.
“With health & wellness trend gaining popularity, there is an upsurge in demand for organic and natural haircare and makeup products, driving sector growth,” Bisht added.
Hypermarkets & supermarkets dominated the industry with majority value share of 33.7% in 2019, followed by health & beauty stores and convenience stores with shares of 19.7% and 13.3%, respectively.
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