Cosmetic OEM Manufacturing
Cosmetics: The Intrigue of Beauty Enhancement Products and the Continuously Rising Market Value
Cosmetics, a mainstay in the marketplace for ages, might seem to many as a modern widespread phenomenon. However, cosmetics date back to ancient times, evident from the discovery of pigment-stained stones to the refined mineral powders mixed with oils or fats in ancient Egypt used for facial adornment. More than just products, cosmetics represent a cultural tradition intrinsic to humanity across all eras. With the advent of increasingly advanced cosmetic manufacturing technology and the expanding breadth of the beauty market that now extends beyond just women, cosmetics have evolved significantly. This evolution encompasses everything from product design and functional properties to a wide array of innovative new cosmetics that align with contemporary times.
From a consumer base once limited to a specific group, the reach has expanded to the point where today, anyone can access and use cosmetics without restrictions, propelling the cosmetics market towards continuous growth. It has become one of the most valuable markets of today, with numerous brands emerging over recent years. Each brand competes by introducing innovative and interesting products to the market, providing options for consumers and creating market value for their brands. The cosmetics market remains capable of penetrating customer segments and fostering new brands to enhance its market value. In particular, in Thailand, which boasts one of the highest market values for cosmetics in the Asia region, new entrepreneurs interested in cosmetic manufacturing can certainly tap into this steadily growing market.
Beauty Market Trends and Cosmetic Product Value
The cosmetics industry in Thailand is considered to have the highest market value within the ASEAN region. Surveys have revealed that beauty products have an exceptionally high market value of more than 200 billion baht per year. The proportion of cosmetic products is about 12 percent, with a consistent growth trend of at least 7.6 percent. Facial cosmetics have the largest market share at 57 percent, followed by lip products at 25 percent, and eye cosmetics at 17 percent. This indicates that the beauty industry is a highly interesting market with a significant market value and increasing production avenues, offering opportunities for those interested in owning a brand to easily launch products into the market.
The current cosmetics market has become increasingly diverse, with brands not only focusing on the beauty aspects but also paying more attention to image, environmental concerns, and consumer needs. There is a move towards marketing and researching consumer trends beyond just the product benefits, including considerations for the environment, the consumption of products without chemical ingredients, and the avoidance of animal testing. Let’s take a look at the current cosmetic production trends that are under the spotlight.
1. Clean Beauty
Nowadays, consumers are increasingly concerned with the quality of ingredients in products, including the various residual chemicals. The term “Clean” here refers to cosmetics that are free from harmful substances. The ingredients are natural, organic, and can be used without worry. Many brands are starting to follow this trend and develop products that align with it.
Many are familiar with this term. We might have seen a small rabbit logo on packaging, which indicates that the product has not been tested on animals. The various ingredients in these cosmetics have not been subjected to animal testing. Those concerned with animal welfare and quality of life tend to prefer products that have not undergone animal testing. This trend not only benefits the environment but also adds value in the market.
3. Vegan Products
Following on from cruelty-free products, vegan products do not contain any animal-derived ingredients. For example, lipsticks that use plant-based oils instead of beeswax. This category targets those who lead a vegetarian lifestyle or those who are allergic to animal-based products.
4. Recycle Packaging
Product design is critical today, starting from the product itself to its packaging. Packaging should not only look beautiful but also possess additional special properties to match the current environmental conservation trend. Many brands opt for recyclable packaging, biodegradable materials, or offer refillable product options, allowing old packaging to be reused.
These trends are part of what helps our products grow in the cosmetics industry today.
Types of Cosmetics and Market Share
Cosmetic currently on the market can be divided into various types, but the segments that can generate high market value can be categorized into:
- Facial Cosmetics hold a market share of as much as 57 percent, including products such as foundation creams, cushion compacts, pressed powders, loose powders, and products for pre-makeup skin preparation.
- Eye Cosmetics have a market share of 25 percent, such as eyeshadows and mascaras.
- Lip Cosmetics hold a market share of 17 percent, including lipsticks and lip balms.
These three types of cosmetics are the most popular categories, with numerous cosmetic manufacturers providing production services nowadays. In addition, the beauty industry also offers a wide array of other products, such as skincare products like various skin nourishing creams for both face and body, hair care products from shampoos to hair oils and hair styling sprays, perfume products, and oral care products are also part of the beauty industry groups. Beauty products have a very high market value, exceeding 200 billion baht per year, with these three types of cosmetics having a market value of approximately 26 billion baht, which is considered a very high value compared to other product groups.
The cosmetics market in Thailand has the highest value when compared with other countries in the same region and tends to grow continuously. Moreover, compared with purchasing power, Thais are found to spend the most on this type of product. In making purchase decisions, consumers start by considering the brand’s credibility, followed by the product’s features and performance. As for the price, it is the last concern for Thai consumers who will certainly be willing to pay if the product is truly good. Therefore, in developing our products, we must control and focus our attention on developing the quality of the product as the most important aspect.
Understanding the 3 Main Types of Cosmetics
Cosmetics for Facial Skin
The cosmetics in this category can be developed and produced in a variety of forms to meet and cover the market’s demands as extensively as possible.
- Foundation Cream: This is a product that can come in many formulas, adjusted to suit various types of facial skin and tailored in color to match skin tones as closely as possible.
- Concealer: A product designed for targeted coverage, used similarly to foundation but focused on concealing specific areas with imperfections such as acne marks, scars, or dark circles under the eyes.
- Cushion: This product is designed for easy, convenient, and quick application, functioning similarly to foundation but offering a lighter touch.
- Pressed Powder: The most popular type of powder in the market, it has been developed to come in various forms, including translucent, natural finish, and even powder-foundation that matches the skin color.
- Loose Powder: Developed to absorb facial oil, or to be applied after sunscreen or foundation to set the makeup and prevent excessive shine.
- Cream Products: Apart from the powders, facial cosmetics also include cream types like cream blush or blush in cream form, which tend to be more long-lasting than the familiar pressed powder blushes.
Cosmetics for the Eyes
- Eyeshadow: Eyeshadows in today’s market come in a vast variety, from single-palette shades to multi-color palettes that offer a wide range of hues, as well as cream-based and liquid eyeshadows. Each type has its own suitability for different uses.
- Eye Primer: This is a product developed to make the application of eyeshadow on the eyelids easier and to help the eyeshadow last longer.
- Mascara: A product for curling and lengthening the eyelashes, many brands design more than three types of mascara to cover consumers’ needs and to capture a larger market share. Mascaras come with various features to meet the specific desires of consumers.
- Eyebrow Care Products: These include eyebrow pencils, powder, gel, as well as mascara for eyebrows.
- False Eyelashes and eyelash glue are also considered cosmetics in this category.
Cosmetics for the Lips
This category includes various types of lipsticks such as stick, liquid, palette forms, as well as lip liners. These products are particularly interesting to produce because they can be developed with a wide variety in every aspect—from the formula of the lipstick, its format, the packaging, to the type of lipstick itself.
- Dominique Petruzzi, “Cosmetics industry – statistics & facts,” Statista, August 31, 2023, www.statista.com/topics/3137/cosmetics-industry/#topicOverview.
- “The beauty market in 2023: A special State of Fashion report,” McKinsey, May 22, 2023, www.mckinsey.com/industries/retail/our-insights/the-beauty-market-in-2023-a-special-state-of-fashion-report.
- Peris Walubengo & Adrianna Simwa, “Top 10 types of cosmetics and their uses explained with images,” Legit, September 28, 2022, www.legit.ng/ask-legit/top/1144324-10-types-cosmetics-their-uses.
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