Official sees room for Thai skincare products targeting Chinese women

High-end skincare products can be a lucrative avenue to explore, as the market is expected to be valued at 168.8 billion baht by 2024, said Buntee Parnichprapai, secretary to the Minister of Commerce. 

Currently, there is a significant increase in demand for skincare products among Chinese consumers, particularly products targeting skin whitening, freckle reduction, and brightening. 

According to the 2022 market trend report on skin whitening, published by the Meilixiuxing app which provides skincare and cosmetics decision-making services, more than 90% of the surveyed sample group of 2,240 individuals expressed a desire for whitening products. 

Since 2020, there has been an 82% increase in Chinese consumers' interest in whitening products, Buntee said.

According to iResearch, the market value of the whitening essence market in China reached as high as 28.51 billion yuan, or approximately 137.50 billion baht, in 2020. It is predicted that from 2021 to 2023, the market would continue to grow steadily at a rate of 12.7% annually and expand to over 35 billion yuan (168.80 billion baht) by 2023.

Buntee added that, "The skin of Asian people is generally thinner than that of Europeans, and it has a weaker protective barrier against external factors, which can potentially impact skin health. Therefore, Chinese consumers are seeking whitening products that are non-irritating and highly effective. Popular whitening ingredients in the Chinese market include fruit acids/alpha-hydroxy acids, vitamin C, and niacinamide, which are widely accepted by Chinese consumers for their efficacy and familiarity."

Currently, whitening skincare products available in the Chinese market from popular international brands include Clinique, Elizabeth Arden, Kiehl's from the United States, Dr.Ci:Labo, SK-II from Japan, and Clarins from France. As for Thai whitening products entering the Chinese market, some examples include Mistine Whitening Sunscreen Spray, Promina Pearl White Cream, and Nakiz Body Nourishing Cream.

For the whitening market in China, the target audience is primarily the Gen Z demographic, working individuals in urban areas, and male consumers aged 25-34. This increased demand for skincare products and interest in whitening products has expanded the target market, potentially creating a new Blue Ocean market for skincare products, Buntee said. 

In addition to facial skincare, there is also a significant emphasis on whitening products for the body, such as body lotions, hand creams, and tooth whitening products. This continuous development in the market indicates its potential for growth, Buntee added.

In the Chinese market, popular whitening skincare products are priced below 200 yuan (960 baht) and account for 48.1% of the market. Only 3% of the products are priced above 2,000 yuan (9,600 baht).

However, there has been a significant growth in the high-end segment, specifically products priced between 500-999 yuan (2,400-4,800 baht), which expanded from 10.2% to 19.6% since 2020. This indicates that there is still a relatively low number of high-end products in the market, presenting an opportunity for various brands to develop products that align with the future market demands, Buntee said.