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The beauty industry in Thailand has grown 44% since 2008 to reach an estimated US $ 3.6 billion, according to a report by Mintel. This growth has been fueled by the popularity of BB Creams and Thai ingredients in the West, and the growth is expected to continue into 2015.
The report estimates the Thai beauty market to continue to grow 34% to reach US $4.8 billion in 2015. As Thai ingredients and products become more popular in the West, Thai manufacturers are given the opportunity to develop more finished beauty products for export.
The use of botanical and herbal claims in beauty products is driving Western brands to launch new products with exotic extracts from Eastern traditions. Latest research from Mintel reveals that opportunities remain high for Thai manufacturers using celebrated Thai ingredients in beauty products—both locally in the Western beauty market. The traditional Asian holy basil is becoming an increasingly popular ingredient in Western beauty products. While India remains the number one country for beauty and personal care products containing holy basil (accounting for 38% of NPD globally in 2011), the UK has one of the highest demands for this ingredient. Globally, in 2011 the UK sat in third place accounting for 14% of global new product development containing holy basil. Also in Europe, France is one of the biggest marketplaces for new products with holy basil in the beauty and personal care sector. While its usage was limited back in 2008 (3%), today, France accounts for some 5% of global NPD using the ingredient. In terms of products where holy basil are found—within the global market a third (33%) of products containing holy basil are for face and neck care, but it is also a popular ingredient in body care and soap bars, with a 14% share respectively. Meanwhile, as many as 9% of new products with the ingredient are found in the hair treatment sector.
Mangosteen, even though it remains a niche ingredient in Europe, has grown in popularity in the UK, making the country the second biggest mangosteen market in 2011 globally. In 2011, the UK accounted for an 11% share of the global market for Mangosteen. And in this year to date, the UK has already exceeded 2011, accounting for 16% of global NPD. Furthermore, other traditional Asian ingredients such as shikakai are emerging in Europe. Indeed, the first beauty product containing this ingredient launched in the UK only this year (2012). In the same way, France and Italy are also beginning to introduce it into their markets, with three and two launches respectively in 2012.
The popularity of BB creams has now encompassed the globe, with new launches rising 330% between January 2011 and September 2012. While China claimed 30% of the global market share for new product development of BB creams in 2011, South Korea claimed 22% and Japan claimed 11%. The report anticipates BB cream popularity to rise in the United States and move into Latin America. Anti-aging, brightening and moisturizing claims are popular in European BB creams, whereas whitening claims are more popular in Asian BB creams.