April 18, 2024
ASEAN Organic Cosmetics Market

The ASEAN Organic Cosmetics Market is in Trends by Sustainable Beauty

The ASEAN Organic Cosmetics Market is experiencing increasing demand due to growing awareness about the need for sustainable and eco-friendly beauty products among consumers in the region. Organic cosmetic products are manufactured without the use of chemicals, preservatives, dyes, or synthetic ingredients and are considered safer for both skin and the environment as compared to their conventional counterparts. The rising disposable income and changing lifestyle of people have further fuelled the growth of the organic cosmetics industry.

The ASEAN Organic Cosmetics Market Size is estimated to be valued at US$ 5280.59 Billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the ASEAN Organic Cosmetics are Garda World, Brinks, Securitas, G4s, and Loomis. The key players focus on expanding their offerings and geographical presence to strengthen their market position. For instance, in 2022, G4S launched a new range of organic and sustainable personal care products made from plant-based ingredients.

The growing demand for clean-label and natural personal care products free from synthetic and toxic ingredients is driving the ASEAN organic cosmetics market. Especially from millennial and Gen Z consumers who are more environmentally conscious regarding the products they use. Furthermore, the availability of these products through e-commerce platforms and social media marketing has made organic cosmetic products more accessible to urban consumers.

The ASEAN region has emerged as a lucrative market for domestic as well as international organic cosmetic brands. Various companies are expanding their footprint through acquisitions, collaborations, and partnerships to gain a larger share of the fast-growing demand from ASEAN countries such as Thailand, Indonesia, Vietnam, and Malaysia. For example, in 2023, L’Oréal announced plans to invest $52 million to develop the organic personal care market in Vietnam.

Market Key Trends

Sustainable beauty has become one of the major trends in the ASEAN organic cosmetics industry with more consumers looking for brands that are environmentally responsible. Manufacturers are increasingly adopting green chemistry practices and using plant-based or recycled packaging materials to lower their carbon footprint. Some key players have also launched refill programs and buy-back schemes as part of their sustainability initiatives to reduce plastic waste from primary packaging. This focus on ESG has enabled organic brands to strengthen their premium market position based on values.

Porter’s Analysis

Threat of new entrants: Low initial investment in production and distribution acts as incentive. However, well established brands and stringent regulations pose a challenge.
Bargaining power of buyers: Large buyers can negotiate on price and new product developments. Switching costs are low as alternatives are many.
Bargaining power of suppliers: Suppliers of natural and organic ingredients have some control over prices as alternatives are limited. However, they still depend on brand’s sales volumes.
Threat of new substitutes: Substitutes from conventional cosmetics pose a threat. However, focus on natural and sustainable products gives organic cosmetics an edge.
Competitive rivalry: Intense competition among existing players to offer unique formulations and build brand loyalty.

Geographical Regions

ASEAN countries together account for over 60% of the overall organic cosmetics market value in the region. Indonesia and Thailand have emerged as major consumers with changing lifestyle and increasing disposability income. Both countries are working towards building domestic organic farming sector to boost local production of natural ingredients.

Fastest growing region for the ASEAN organic cosmetics market by value is expected to be mainland Southeast Asia including Vietnam, Cambodia and Laos. Increasing consumer awareness about chemical-free products and rising prosperity is driving strong double digit growth. Local startups are launching innovative product ranges catering to the needs of young population. Export opportunities from these countries are also growing substantially.

1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it