According to the market researcher, a rising preference for Eastern traditional ingredients in the West has seen the Thai beauty market to have grown by 44 percent since 2008 and is estimated to reach US $4.8 billion by 2015.
As international beauty brands from around the world gathered in Thailand for In-cosmetics Asia last week, Mintel revealed the economic impact of exports and how the West, primarily the UK, is leading demand for Thai beauty Ingredients.
In its report, the market researcher reveals that the Thai beauty sector alone, will reach $3.6 billion in 2012, up from $2.5 billion in 2008.
“We believe 2015 could be a watershed year for the Thai beauty market. It is poised to become a more powerful, competitive market. Thai ingredients are already building a following in the West, opening the door for more premium and masstige Thai brands,” says Mintel's Vivienne Rudd, Director of Insight, Beauty & Personal Care.
Factors driving the trend
The popularity of BB Creams and the use of botanical and herbal ingredients are said to be prompting Western brands to launch products with extracts from Eastern traditions whilst also giving Thai manufacturers the opportunity to develop more finished beauty products both locally and in the West.
“While Asia remains a key market for BB Creams, the craze has moved to the West, where new launches of the Creams rose a significant 330 percent between January 2011 and September 2012, ” says Rudd.
“The arrival of BB Cream in Western markets is more recent, but European retailers say sales are encouraging thanks to coverage in the beauty and national press whipping up excitement about the product,” she adds.
The market expert also highlights the traditional Asian 'Holy Basil', as 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 percent of NPD globally in 2011), the UK has one of the highest demands for this ingredient,” she explains.
UK taking the lead…
In 2011 the UK is said to have sat in third place accounting for 14 percent 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 percent), today, France accounts for some 5 percent of global NPD using the ingredient. In terms of products where holy basil are found—within the global market a third (33 percent) 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 percent share respectively.
Meanwhile, as many as 9 percent 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 percent share of the global market for Mangosteen. And in this year to date, the UK has already exceeded 2011, accounting for 16 percent of global NPD.