In the first 2024 Thailand Beauty Outlook report of our Beauty Pulse series of short reports on Thailand’s beauty and personal care market, we explored how evolving consumer needs and behaviours are creating growth opportunities.
This time we’re looking at demographics: the age groups driving growth in the sector their priorities and characteristics, and how shoppers from different generations are purchasing beauty products. Understanding these three key segments will help brands know how best to connect with them today, and spot the needs they will have tomorrow.
The Silver Generation
Thailand has an ageing population, and the number of consumers over 50 is increasing rapidly. This generation has a high level of disposable income, and they’re using it to buy more beauty and personal care products: in 2023 they spent 14% more on hand and body lotion than they did the previous year.
The number of different categories they purchased also rose, by 6%, indicating a growing engagement with the beauty sector and a desire to experiment and expand their regimes. What’s more, the average price per unit they paid increased 10%, indicating opportunities for premiumisation.
Thailand’s silver generation currently spends less on beauty than consumers at other life stages. As a result, many brands do not consider older shoppers to be a key growth segment, and penetration of beauty products is the lowest of all age groups.
It is important to build engagement and loyalty with the silver generation, however: people are living longer, and Thailand will continue to be an ageing society. Its members are enthusiastic about taking care of their appearance; they are keen to look healthy on the outside, as well as being healthy on the inside.
Strategies for success:
Develop innovative new products that serve the unmet needs and concerns of older consumers – for example those which possess anti-aging properties, soothe dry and itchy skin, and fight blemishes such as age spots.
Connect with this group via social media. They use the Line messaging app, YouTube and Facebook most often.
The silver generation in Thailand is
Self-indulgent
Health focused
Addicted to social media
Millennials
This is the generation that every brand is targeting – and for good reason. It is still the main driver of the beauty market, spending more on products than any other age group.
Millennials are the core working age population in Thailand, and will remain so for decades to come. Their lifestyles are constantly changing, however, so it is essential for brands to keep their finger on the pulse. For instance, the ‘solo economy’ is prominent in this demographic, with more millennials than ever before living alone.
Millennials are the core working age population in Thailand, and will remain so for decades to come. Their lifestyles are constantly changing, however, so it is essential for brands to keep their finger on the pulse. For instance, the ‘solo economy’ is prominent in this demographic, with more millennials than ever before living alone.
This generation has an incredibly open mindset – they’ve grown up in a period of great change, and this has made them highly adaptable.
Strategies for success:
Recognise that convenience is a non-negotiable. Millennials want to live their lives to the fullest.
Leverage technology across everything. Shoppers in this group are digital natives, and expect technology to play a leading role in all aspects of the brand experience.
Millennials in Thailand are
Adventurous
Discerning
Purpose-driven
Gen Z
Gen Z in Thailand is
Diverse
Ethical
Sincere
Despite making up one fifth of Thailand’s population, this is the age group that brands and retailers know least about. Now in their twenties, the extent of Gen Z’s influence on the FMCG landscape cannot be underestimated. They are earning their own money, and making decisions, not only for themselves, but also for others: 35% are responsible for purchasing for their entire household.
Members of Gen Z have strong values, which are very distinct from other age groups.
They don’t want to feel like ‘mass consumers’, so will respond positively to brands that help them to differentiate themselves, for instance through offering niche products. They are very willing to trial new categories.
Men as well as women are interested in beauty and personal care, so gender-neutral products and marketing are more relevant than for other audiences.
Beauty brands should think long-term: targeting and engaging these young shoppers early to build awareness of the brand and products, and grow alongside them.
Strategies for success:
Build trust through communication that is consistent, authentic and inclusive, and follow it up with action. Marketing activities must demonstrate a clear identity, and prove that you genuinely care about issues such as the environment.
Create an exceptional offline experience. Gen Z shoppers value face-to-face conversations and physical connections, and the opportunity to have fun with others. Pop-up stores and events are a great way to engage them.
Cr: Kantar
