Natural and organic products continued to be a product trend in Vietnam despite higher prices. Due to an increase in the number of scandals about bath and shower products containing toxic chemicals, more consumers started to use natural and organic products to protect their skin. In 2016, this trend increased in big cities such as Hanoi and Ho Chi Minh City, with products purchased mainly by high- and middle-income consumers.
Unilever Vietnam International Co Ltd, with its brands Pond’s and Vaseline continued to lead skin care, with a retail value share of 12% in 2016 thanks to dynamic marketing activities and a wide distribution network. However, over the review period, the company started to lose share to other new international players in urban areas due to slight movement from mass products to premium brands.
Skin care is expected to register a retail value CAGR of 10% at constant 2016 prices over the forecast period, which is slightly lower than the review period due to category maturity. However, as awareness of using beauty and personal care products increases, consumers are expected to spend more on skin care products and premium brands in the future.