Navigating the Beauty Market Landscape in Southeast Asia and MENA

The global beauty market is stabilising after several years of post-pandemic volatility, with growth expected to level at around 5% annually through 2030. Beneath this global moderation, however, two regions continue to outperform and are fast becoming the new gravitational centres of the beauty industry: Southeast Asia (SEA) and the Middle East & North Africa (MENA).

MENA’s beauty sector is projected to grow at a remarkable 9% CAGR, fuelled by premiumisation, cultural affinity for luxury, and one of the world’s highest per-capita fragrance spends. SEA, meanwhile, offers deep volume growth, driven by a young mobile-first population and one of the most dynamic digital commerce ecosystems globally (hamra & elma).

Taken together, these two regions are reshaping global resource allocation, consumer strategy, and innovation pipelines for the decade ahead.

Southeast Asia: Volume Growth, Digital Acceleration, and Cultural Adaptation

Market Landscape

The SEA Beauty and Personal Care market, valued at USD 36.14 billion in 2025, is set to grow at 3.8% CAGR through 2030 (Statista, 2025). Skincare leads in revenue share, but Makeup is the fastest-growing segment, accelerated by viral beauty trends and Gen Z’s preference for self-expression.

Vietnam, Thailand, and Indonesia stand out as the region’s largest and quickest growth markets.

Digital-First Consumers

SEA’s young and mobile-first demographic drives one of the world’s most advanced social commerce ecosystems.

Vietnam alone commands 57% of the region’s online beauty sales, outpacing Thailand, Malaysia, the Philippines, and Singapore combined (Source of Asia, 2025).

Shopee, TikTok Shop, and Lazada dominate with hybrid C2C/B2C models, enabling local challengers to compete alongside global incumbents.

K-Beauty’s Strategic Edge

K-Beauty retains strong influence in the region—underpinned by cultural affinity, affordability, and customisation. Korean brands balance premium appeal with cost-effectiveness and offer halal-certified lines for Muslim-majority markets (Supermom, 2024).

Their adoption of AI-driven skin analysis, tech-enabled product matching, and compact lifestyle-friendly packaging continues to align closely with Gen Z behaviour.

Key Consumer Shifts

  • Green & Clean Beauty: Gen Z willingness to pay for sustainability continues to rise.

  • Halal Beauty: A core pillar in Indonesia and Malaysia, where brands like Wardah remain dominant.

  • Premiumisation: Singapore and Thailand are seeing rapid trading-up, demonstrated in high conversion rates from brands like SK-II (Andrew Quach, 2025).

Thailand Case Study: A Rising Regional Beauty Powerhouse

Thailand’s beauty sector generated USD 7.10 billion in 2025, growing at 4.6% CAGR (Statista, 2025). Notably, 85% of cosmetics sold domestically are locally manufactured, reflecting the strength of Thailand’s production ecosystem.

Category Breakdown

  • Skincare: 46.8%

  • Haircare: 18.3%

  • Body & Hygiene: 16.3%

  • Makeup: 13.5%

  • Fragrances: 5.1% (Marketeer Online, 2023)

While offline channels remain dominant at 83%, e-commerce now accounts for 17% and continues to grow due to influencers, virtual try-ons, and direct-to-consumer models (Krungthai COMPASS, 2025).

Export Strength & T-Beauty Identity

Thai cosmetics exports are expected to grow at 10–13% year-on-year, boosted by demand from Asia and the Middle East for herbal, natural, and cost-effective formulations. Thailand’s emerging T-Beauty movement blends:

  • botanical ingredients

  • wellness traditions

  • clean-beauty principles

  • culturally grounded brand storytelling
    (ThaiPR; The Standard, 2025)

This aligns with Thailand’s Soft Power agenda, which positions wellness and traditional knowledge as national value creators. The result: Thai brands are increasingly competitive regionally and globally.

MENA: Premiumisation, Fragrance Culture, and High-Value Beauty Consumption

Market Outlook

The MENA beauty and personal care sector is projected to reach USD 8.37 billion in 2025 with 5.81% CAGR to 2030 (Statista, 2025).

Fragrance is the standout segment, with niche and artisanal brands growing at 4.8–7.5% CAGR (Trends MENA, 2025).

Premium & Luxury Dynamics

GCC markets, such as UAE, Saudi Arabia, and Qatar, host some of the world’s most active luxury beauty consumers. Growth is driven by:

  • high disposable income

  • strong tourism flows

  • duty-free retail

  • boutique-led experiences
    (Raemona, 2024)

Prestige fragrances, oud-based scents, and limited-edition launches remain core pillars of regional demand.

Cultural Emphasis

  • Fragrance as identity: Deep cultural significance and high per-capita spend.

  • Skincare layering: Multi-step routines adapted to high-UV climates.

  • Holistic beauty: Supplements, dermatology-led brands, beauty-from-within solutions.

Growth Dynamics Across Subregions

  • UAE & Saudi Arabia: Premiumisation, aesthetic dermatology, and high experimentation (Beauty Matter, 2025).

  • Egypt & North Africa: Volume-driven growth, expanding middle class, modern retail penetration (Mordor Intelligence, 2024).

Influencers & Celebrity Power

Influencer ecosystems, dominated by TikTok and Instagram, shape discovery and conversion.  Arabic-language content and culturally resonant storytelling deliver the strongest results (YMcosmetic, 2025; CBS 42, 2025).

Celebrity and royal family endorsements, particularly in the GCC, significantly accelerate brand prestige.

Shared Challenges Across SEA & MENA

Regulatory Fragmentation

  • SEA countries maintain distinct registration, labelling, and testing frameworks; Indonesia/Malaysia require halal certification.

  • MENA markets, despite referencing GSO 1943/2016, still require separate national approvals, slowing time to market.

Rising Consumer Expectations

  • Demand for clean beauty, reduced plastic, carbon responsibility.

  • Expectation for locally resonant narratives, climate-appropriate formulas, and culturally tailored products.

Intensifying Competition

International brands compete directly with strong domestic players, Thai herbal brands in SEA; niche fragrance houses in MENA, each leveraging cultural affinity and price advantage.

Conclusion: The Next Frontier of Global Beauty Influence

As the global beauty sector normalises, SEA and MENA are becoming the most consequential regions for future growth and brand relevance.

  • SEA: Driven by digital-first youth, online volume, and rapidly maturing homegrown brands.

  • MENA: Powered by luxury consumption, fragrance heritage, and wellness-led premiumisation.

Winning in these markets requires more than presence, it requires cultural fluency, regulatory readiness, digital mastery, and tailored product innovation.

The next decade of beauty influence will not be shaped in legacy Western hubs, but in the youth-driven, highly connected, culturally confident markets of Southeast Asia and the Middle East.

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