Thailand's Beauty and Wellness market is set to undergo significant transformations by 2025, prompted by shifting consumer behaviors and demands. With mounting concerns about health, authenticity, and personal well-being, businesses must adjust their strategies to navigate this rapidly changing environment.
Recent findings from the Industry Insights: Beauty & Wellness seminar, co-hosted by Digital Tips and Nielsen, illuminate the key trends driving the market. According to Mantida Jinda, Managing Director of Digital Tips Academy, four primary consumer trends are expected to characterize the Beauty and Wellness sector:
1. Wiser Wallet: Consumers are becoming more intentional about their spending. A staggering 72% of shoppers express concern over rising living costs, prompting them to prioritize value for money. The impulse purchase rate has dropped from 18% last year, reflecting this shift. Brands are encouraged to build trust by communicating the quality and value of their products clearly.
2. Skintellectual: A new breed of informed consumers known as 'skintellectuals' research ingredients and their origins before purchasing. Customers demand transparency from brands about product contents and their environmental impact.
3. Lack of Trust: Confidence in online information, especially about health, is declining. A notable 59% of consumers are skeptical about digital health content, perceiving it as mere advertising. Brands are urged to create communities and encourage user-generated content to bolster trust.
4. Prioritizing Healthspan: There's increasing focus on sustainable quality of life and mental health. The World Health Organization highlights mental well-being as a top priority, with 54% of consumers actively seeking guidance on supplements to support their health.
To thrive amid these changes, businesses are advised to implement effective strategies. These include:
1. Meeting Consumer Needs: Understanding and addressing consumers’ needs remains imperative. For example, L'Oreal’s successful home hair coloring kits were developed to meet the rising trend of Ombre hair coloring.
2. Personalized Marketing: A staggering 80% of customers are willing to buy from brands offering personalized shopping experiences. Implementing data-driven strategies such as segmentation based on customer behavior is key to achieving this goal.
3. Improving Customer Experience: Businesses need to create memorable experiences, driving customer satisfaction and engagement. Strategies might involve branded hashtags generating user-generated content.
4. Leveraging AI & Automation: Technology can streamline operations and make marketing efforts more efficient. Utilizing AI for data analysis and campaign management assists businesses to keep pace with consumer expectations.
5. Gen Z Marketing: Brands must connect with younger consumers who prioritize mental wellness, diversity, and authenticity. Guidelines suggest reflecting various demographics and promoting inclusive messaging.
One defining factor for 2025 is the rise of health-consciousness, with 68% of Thais actively choosing healthier food options. The supplementary food market, especially vitamins and beauty products, is expected to grow significantly as awareness of self-care increases.
According to Nielsen's projections, segments of the market are diversifying:
1. Elevation of Local Brands: The growth of Thai cosmetic brands—especially lip products—occurs as 60% of consumers prefer local options for cost-effectiveness and quality.
2. Masculine Market Growth: Men's skincare is on the rise, with 47% using products like moisturizers, signaling new business opportunities for brands targeting male consumers.
3. Technological Adaptation: The use of social media is growing, necessitating brands to adapt their marketing strategies to digital platforms where consumers seek information.
With the evident trend toward omnichannel behaviors, 46% of consumers are reported to research products online before making physical purchases. Concurrently, 34% investigate products at brick-and-mortar stores before deciding on online purchases. Strategies like Click-and-Collect are increasingly necessary for connecting these shopping habits.
Looking forward to 2025, the Beauty and Wellness industry must redefine its approach, focusing on transparency, authenticity, and consumer engagement. By embracing these new trends, brands can anticipate increased growth and customer loyalty, fostering healthier lifestyles across the board.