The State of K-Beauty Market in Southeast Asia 2024
1. Market Share by Country
While K-beauty currently account for 12% of Southeast Asia’s overall beauty market, they have steadily been expanding reach and popularity across Vietnam, Thailand, and Indonesia - the three largest cosmetics markets in the region:
a. Vietnam
Korean beauty brands have made substantial inroads into the Vietnamese market, capturing a 22% market share. This rapid ascent is driven by a 122% surge in K-beauty exports to Vietnam since 2019, averaging a remarkable 22% annual growth rate by 2023.
- In late 2023, Vietnam imported approximately $305 million worth of South Korean cosmetics, significantly outpacing imports from other major players such as France (Garnier), China (BioAqua), and the United States (Pond's).
b. Thailand
Since 2023, K-Beauty has taken a leading position in Thai cosmetics, acquiring a third of the total market share. Facial serums, particularly popular among Thai women to combat dry skin during extreme heat waves, account for 23% of sales.
- Online marketplaces (Shopee) are also driving this surge in the country, with orders for Korean skincare imports having seen a 191% increase in 2024.
- In the coming years, K-Beauy brands COSRX, Fwee, Torriden, and VT Cosmetics aim to triple their e-Commerce imports and sales to outcompete prominent local brands such as Vikka Skincare and The Skin Collection.
c. Indonesia
By 2032, the K-Beauty market in Indonesia will reach a massive $936 million. 62% of Indonesians between 15 and 25 years old have already adopted Korean beauty products, particularly face masks. These products are favoured for their convenience, ease of use, and natural, transparent ingredients.
- To counter K-Beauty’s popularity, major local brands such as Somethinc, which currently holds a 50% market share, have started incorporating K-Beauty-inspired ingredients i.e. salmon DNA and natural spicules to maintain its leading position in natural skincare.
Also Read: Self Care Statistics: Indonesian Women's Beauty & Wellness 2023
2. Gen Z Consumer Behavior Analysis
Gen Z women from age 18 to 26 year olds are the leading growth drivers for K-Beauty, with over 21% increasingly incorporating skincare regimens and makeup into their daily routines. Their purchasing decisions are shaped by the following factors:
- Overall, 62% are experiencing beauty-related concerns, with appearing youthful (34%) and boosting self-confidence (49%) emerging as key priorities for Gen Z women.
- Gen Zs are habitual buyers – 96% have bought skincare products in the last 3-6 months.
- They are willing to explore diverse shopping experiences, with 54% keen on trying new, unique products.
- 54% look for natural, clean formulations that replenish skin tones & prevent early ageing, particularly in Malaysia & Vietnam, due to the region’s predominant tropical weather.
Why Korean Beauty Brands Dominate SEA Markets?
The fascination of Gen Z consumers with K-Beauty brands is not accidental. Rather, it is a result of several factors in the region:
1. As mentioned above, K-Beauty are affordable
While it's common to relent quality for affordability, Korean products have proven this notion wrong. K-beauty brands offer premium-quality skincare products at affordable prices, making them a great choice for Southeast Asian consumers – who are particularly price-conscious when it comes to making purchase decisions.
- Brands such as VT, Innisfree, and ROM&ND offer a variety of affordable skincare products, including moisturising masks, toners, and body sprays, typically priced between $10 and $15. These prices can drop even lower to $2 to $5 during promotions on Shopee and Lazada.
2. Their products are localised & hyper-personalised
54% of Gen Z are willing to switch for brands that understand their unique complexions and skincare regimens. K-Beauty brands have capitalised on this opportunity by tailoring their products’ efficacy to Southeast Asian taste – a strategy other international brands have occasionally overlooked in recent years.
- For instance, the prominent K-Beauty brand Kolmar was the first to tailor its L Soulle line specifically for the Malaysian Muslim market.
- This product range includes alcohol-free, paraben-free, cruelty-free, and halal-certified moisturisers and other skincare items. It is Malaysia’s first Korean halal and vegan beauty brand, reflecting K-Beauty’s willingness to embrace differences and localising supply chains for regional preferences.
Source: Revon
K-Beauty brands are also perceived as more advanced and practical for everyday life. 28% of working Gen Zs appreciate K-Beauty's user-friendly products and smart compact packaging, allowing them to incorporate effective skincare into their busy lifestyles without sacrificing their usual nighttime activities.
Furthermore, several K-beauty brands such as Toun28, Lululab and LillyCover are offering personalised beauty services beyond skincare products, including:
- 360-degree skin analysis appointments
- AI chatbots for personalised beauty tips
- AR-enabled virtual product try-on and testing
With 69% of Gen Z seeking personalised experiences, K-Beauty sets itself apart from its competitors by focusing on enhancing the entire consumer journey and harnessing technology to drive innovation for this tech-savvy demographic.
3. They effectively utilise influencer marketing & the Korean Wave
More than half of Gen Z consumers are also seeking beauty advice from micro-influencers. This shift is quite evident in the realm of K-Beauty, where Instagram and TikTok have seen a surge of over 6.2 million micro-influencer-led posts in the past two years.
- K-Beauty brands Cosrx, Tirtir, and d’Alba are capitalising on this trend by collaborating with micro-influencers.
- Despite having only 2,000 to 10,000 followers, these influencers can generate 4x higher engagement rates than high-profile celebrities, as platforms now prioritize engagement rates over follower count.
Source: JerryBean
- By partnering with micro-influencers to showcase Hallyu-inspired makeup trends, K-Beauty brands have effectively reached and persuaded Gen Z consumers; In fact, 22% have made K-Beauty purchases based on their recommendations.
Also Read: KOL Marketing Strategy: Singapore Brand Achieves 4.3X Target
4. They are fast-adopter of regional trends (most notably, Gen Z’s)
K-Beauty also leverages research-driven approaches to catch up with the latest concerns and preferences of today’s Gen Zs.
- Since 2023, there has been an increased interest among Gen Z for lowering the skin ageing rate, rather than to prevent once the signs are shown. With that in mind, Korean marketers have made use of specialised keywords such as ‘anti-ageing’ to ‘healthy skin-ageing’ front and centre in their marketing campaigns.
- This shift in marketing language reflects Gen Z's heightened priority towards preventative skincare, which significantly elevates K-Beauty brand trust among consumers.
5. They have strong social presence
Social media platforms, especially Instagram and TikTok, are also pivotal in catapulting K-beauty brands to fame. As platforms specialising in visual content, they provide the ideal stage for skincare brands to showcase product transformations and routines, leading to viral trends.
- Videos delineating the product benefits from Laneige, Innisfree, and Cosrx flood timelines, directly influencing consumer behaviour and demand. Particularly in Indonesia, this accessibility has raised the imports of Korean cosmetics in the country, from $3.78 million in 2015 to $45.8 million in 2023.
- Moreover, e-Commerce gateways such as Shopee and Lazada have enabled Korean beauty brands to reach a broader audience far more efficiently, with Shopee accounting for as much as 73% of overall beauty online sales.
What Are the Key Takeaways For SEA Brands?
The meteoric rise of K-beauty presents not just a growing fad, but a shift in Gen Z’s consumer attitudes towards transparent and advanced beauty care, driven by the pursuit of performance and authenticity in skincare products and advertising.
How can Southeast Asian brands then successfully compete with K-Beauty and win over Gen Z consumers in their own market? Here are several strategies to adopt:
1. Employing authentic voices
22% of Gen Z have shown to purchase K-Beauty products from social media platforms (i.e. Instagram, TikTok & Facebook Marketplace).
Brands can employ micro-influencers or Key Opinion Consumers (KOCs) to redirect leads to your official websites/e-Commerce portals and enhance conversions.
Take an example from Wardah:
- In its early days, the Indonesian brand only partnered with fashion designers and movie stars to endorse its image among affluent Muslim women. However, to resonate with a vast younger audience who value authentic content, the brand soon adopted a micro-influencer strategy.
- By partnering with those who have smaller but more engaged followings (1,000–100,000 followers), the brand achieved remarkable success, generating $24.5 million in e-Commerce revenue alone in 2023.
Source: Supermom Business
2. Product transparency is key
Gen Z women consumers value truthfulness & are willing to pay 20% more should they see transparency in ingredients. Brands can utilise informative, experience-based User-Generated Content (UGC), as well as KOCs and lead generation tools to further capture consumer shares.
- Malaysian skincare brand Skin Inc partnered with Supermom Business to launch a campaign to showcase their innovative +SABI App - an AI-powered virtual skin health coach that delivers personalised skincare recommendations based on users' lifestyle and environmental factors.
- Through a strategic social media campaign, Supermom activated 300 Key Opinion Mothers (KOMs) across Singapore and Malaysia. The KOMs shared their +SABI App skin analysis experiences and customised skincare results, creating content that resonated deeply with their communities.
Source: Supermom Business
- The campaign's authentic approach exceeded targeted reach by 5x across both markets, delivering $720,730 in impacted media value.
Also Read: Brand Awareness Strategy: Singapore Skincare Brand Hits 290% ROI
3. Seamless shopping experiences are top priority
Although offline stores still dominate distribution in Southeast Asia, beauty sales online have risen by 11% among tech-savvy Gen Zs in 2024.
Brands can optimise their integrated omnichannel advertising strategies to amplify reach to these consumers.
- To promote its "May Be Li" campaign in Vietnam, Maybelline, a prominent American brand, leveraged Gen Z’s most popular social media platforms such as YouTube, TikTok, and Instagram.
- The campaign kicked off with a music video featuring Gen Z artists and incorporated viral dance challenges on TikTok, with keywords such as "Resilient," "Empowering", and "Daring."
Additionally, Maybelline utilised targeted ad placements and collaborated with 300 KOCs on all social platforms to further amplify its presence.
Partnered Gen Z singers & makeup artists for the ‘May Be Li’ campaign.
Source: Supermom Business
- As a result, it achieved over 46 million YouTube views and 2 million social media engagements.
This led to a significant surge in Maybelline’s sales, with the Hyper Sharp Reno eyeliner achieving a 316% year-on-year increase and setting a new record for highest monthly sales of a liner on Shopee.
Moreover, the Super Stay Foundation witnessed growth with a 7% sales boost, while the Cushion Matte lip makeup tripled its market share, becoming a top-five product in the lip makeup category.