Southeast Asia: The Azure Frontier for Chinese Beauty Brands

With the continuous evolution of the Asian economic landscape, a vibrant market is quietly forming in Southeast Asia. According to a report released by Mintel in February 2025, it is currently the golden era for Chinese beauty and personal care brands to expand into this region. Strong economic growth, increasingly mature consumers, and unique market characteristics have jointly built a promising growth space.

A Thriving Economic Powerhouse

Southeast Asia has gained global attention for its steady economic growth.With GDP growth rates of 5.5% in Vietnam and 6.2% in the Philippines, demonstrating strong economic vitality compared to Europe's 1.4%, Southeast Asia is clearly at the forefront of global economic growth. According to market data from the Economist Intelligence Unit (EIU), the facial skincare markets in Thailand and Indonesia are expected to exceed $800 million by 2027, highlighting their enormous consumption potential. As beauty awareness surges, consumers are becoming more discerning in their product choices.

Consumer Maturity Skyrockets

Southeast Asian consumers are undergoing rapid evolution in their beauty concepts, no longer satisfied with basic care, but actively expanding their beauty knowledge boundaries. According to Mintel's global consumer survey, 62% of Indonesian consumers conduct "ingredient research" before making purchasing decisions. This data reflects that consumers are shifting from passive acceptance of brand promotion to active exploration of product formulas.

Behavioral shifts are equally striking. A survey found that 36% of Gen Z consumers in Indonesia have added facial skincare steps in the past three months, demonstrating their increasing acceptance of complex skincare processes. 62% of Vietnamese Gen Z consumers stated that high-quality ingredients encourage them to purchase beauty products even at full price, indicating an increasing emphasis on quality among young consumers in the region.

Efficacy Holds Supremacy

Performance-driven preferences dominate purchasing decisions.

Among the five major factors that Thai consumers consider when purchasing beauty products, efficacy ranks first, accounting for 68%, followed by price (58%) and harmless ingredients (44%). The influence of brand, texture, and key active ingredients in decision-making is relatively small, ranging from 24% to 26%.

From the perspective of product form, serums are the most popular form of skin care products in the region. For instance, 76% of Thai consumers said they use them to prevent skin problems. The proportion of serums in new product release also increased from 20% in 2022 to 22% in 2024, showing a trend of continuous growth. Gel-based products are also increasingly popular, especially in hot climates where cooling and moisturizing effects are required.

In terms of skincare efficacy, hydration and moisturization continue to lead the way, with a strong increase in demand for brightening skin tone, growing from 23% in 2019 to 32% in 2024. The long-term popular anti-aging, whitening, and oil control maintain steady demand, reflecting market maturation.

Summarize

Chinese beauty brands have carved a niche in Southeast Asia's e-commerce sector. According to e-commerce platforms Sociolla and Watsons, Chinese skincare brands have nearly 100 SKUs in Indonesia.

However, with the improvement of consumer knowledge, Chinese beauty brands still have a long way to go to achieve long-term success. The key to future success will be to maintain a cost advantage while providing evidence-based claims of efficacy and forming a genuine connection with local culture.

The Southeast Asian beauty market is in a rapid development stage, providing rare growth opportunities for Chinese brands. However, as the market matures and competition intensifies, brands need continuous innovation to maintain competitiveness.

The azure frontier of the Southeast Asian market is opening its doors to Chinese beauty brands. Lily stands ready to journey with you into where potential meets possibility.