Thailand tipped to be 'huge' in organic cosmetics

By Michelle Yeomans

- Last updated on GMT

Thailand tipped to be 'huge' in organic cosmetics

Related tags Animal testing Organic food China

Thailand has been flagged as having huge potential in ASEAN's organic cosmetic market, which is expected to contribute to the overall cosmetic market with a growth of nearly 9.5% by 2020.

Increased disposable incomes and more interest from male consumers towards grooming is supporting the demand for organic cosmetics in Thailand, Indonesia, Philippines, Singapore, Malaysia and Vietnam.

According to 'Future Market Insights', numerous investments in beauty spas and clinics for treating skin or hair problems are also predicted to support the demand for green cosmetics.

Other tactics like digital marketing in areas of distribution and awareness programs via various sites and blogs are also expected to fuel the demand for organic cosmetics.

China reportedly 'loosing out' on natural opportunities

While these markets are tipped to be promising, market analyst Organic Monitor reports China to be missing out on these opportunities, as animal testing requirements continue to hamper growth.

The company’s latest research indicates China’s market growth rates in the category are declining because of the complexities of regulation requirements, the fact that animal testing goes against consumer values in this category, and also specific formulation challenges.

The specifics of the research outline that western natural and organic brands have withdrawn from the markets because of animal testing requirements. This is because having any kind of link to animal testing, anywhere in the world, would be too damaging to the brands.

According to the firm, low availability of certified organic ingredients and natural extracts is the problem, because they are mainly imported into China.

This is being further compounded by the fact that there is limited technical expertise in the product development area, especially when it comes to ensuring that synthetic materials do not appear in formulations.

Hong Kong is particularly benefiting from its neighbour’s animal testing regulations, underlined by the fact that on average 20 new natural and organic cosmetic brands are being launched there every year, leading to one of the highest concentrations for this category in the world.

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