Overview of the Cosmetics Market on E-commerce Platforms in 2025

Vietnam’s cosmetics market is experiencing explosive growth. Traditionally, the market has focused on offline retail channels, but in recent years, the trend of selling cosmetics online on e-commerce platforms such as Shopee, Lazada, and TikTok Shop has risen significantly.

This shift is driven not only by consumer demand for convenience but also by advancements in technology, logistics services, and creative marketing methods like livestreaming and KOL/KOC reviews.

For businesses and small shops, understanding the overall picture of the cosmetics market on e-commerce platforms is essential to build an effective business strategy. By gaining insights into consumer trends, market size, customer behavior, and supporting technologies, businesses can leverage the full potential of e-commerce in the cosmetics industry and achieve sustainable growth.

I. Market Size and Data for Cosmetics on E-commerce Platforms

The rapid expansion of the online cosmetics market in Vietnam can be demonstrated by specific figures:

1. Cosmetics Import Value

Statistics show that over 90% of cosmetics in Vietnam are imported. In the first 11 months of 2024, the value of imported cosmetics and fragrances reached over USD 1.3 billion, up nearly 17% compared to the same period in 2023.

Singapore leads with USD 380 million (29% market share).
South Korea ranks second with USD 174 million, driven by the appeal of K-beauty.
China follows with USD 140 million (10.8%).
Thailand is close behind at USD 139 million, while the U.S. accounts for USD 92 million.

These figures show that Vietnam is a “goldmine” for international cosmetics brands.

2. Cosmetics Revenue on E-commerce Platforms

In the first half of 2024, the beauty category across the 5 major e-commerce platforms (Shopee, Lazada, Sendo, Tiki, TikTok Shop) recorded VND 26 trillion in revenue.

Currently, only 20% of cosmetics sales come from online channels, but this number is expected to grow rapidly, driven by TikTok Shop and the livestream shopping trend.

Notably, 54% of online revenue comes from official brand stores (Mall), showing that consumers prefer buying from trusted brands.

3. Price Segments

Based on data from e-commerce platforms:

VND 200,000 – 500,000: 34% of revenue – the key price segment.
VND 100,000 – 200,000: 27% of revenue.
Premium segments, while smaller, offer high-profit margins, ideal for brand positioning strategies.

II. Cosmetics Consumer Trends on E-commerce in 2025

To succeed in online cosmetics sales, businesses must stay ahead of 2025’s consumer trends:

1. Organic and Clean Beauty Products

Consumers are increasingly concerned about health and the environment, driving demand for organic products free from parabens, sulfates, and harmful ingredients. Brands that commit to ingredient transparency and safety certifications will gain a competitive advantage.

2. Mid-Range Price Segment Dominates

Most Vietnamese consumers are Gen Z and Millennials—tech-savvy, convenience-driven, yet price-sensitive. Therefore:

VND 200,000 – 500,000 is the “sweet spot,” balancing accessibility and profitability.
VND 100,000 – 200,000 suits everyday items like cleansers, masks, and lipsticks.

3. Explosive Growth in Livestream Shopping

Livestreaming on Shopee Live or TikTok Shop is becoming a highly effective direct sales channel. Shoppers can watch live product demonstrations, and KOLs/KOCs interact in real-time, answering questions immediately. The conversion rate from livestreaming is 3x higher than traditional sales methods.

4. Influence of KOLs/KOCs and UGC

Surveys show that over 60% of consumers are influenced by KOL/KOC reviews or UGC (user-generated content). Micro-KOCs (small but highly trusted influencers) are especially effective for building consumer trust.

5. Fast Payment – Ultra-Fast Delivery

Consumers expect delivery within 24–48 hours. Current e-commerce logistics services meet this demand, enhancing the shopping experience and boosting customer confidence.

III. Technology Trends and Shopping Experience

Technology plays a crucial role in expanding the cosmetics e-commerce market:

1. AI & Big Data

AI enables the analysis of shopping behavior, providing personalized product recommendations. This personalization improves customer experience and increases conversion rates.

2. AR/VR – “Virtual Try-On”

AR/VR allows customers to virtually test lipsticks, eyeshadows, or foundations directly on their screens. This not only enhances the shopping experience but also reduces return rates.

3. Interactive Livestreaming

Livestreaming is evolving beyond sales, helping brands build loyal communities, boost brand awareness, and generate consistent revenue.

IV. Competition and Seller Market

Despite the opportunities, competition in the cosmetics e-commerce market is fierce:

In the first half of 2025 alone, over 80,000 shops exited e-commerce platforms, a drop of 55,000 shops compared to the second half of 2024.
Businesses now focus on after-sales services, small gifts, and transparent return policies rather than price wars.
Data-driven marketing campaigns, such as personalized remarketing, are increasingly used.

V. Opportunities for Cosmetics Businesses on E-commerce

Despite the intense competition, the potential for online cosmetics sales remains huge:

Young, tech-savvy customer base: Gen Z and Millennials are the main consumers, easily reached through e-commerce and social media.
Low store setup cost: Compared to physical stores, e-commerce platforms offer a significantly lower barrier to entry, ideal for small shops or new businesses.
Brand-building potential: SEO, content marketing, livestreaming, and TikTok Shop help businesses sell and establish long-term brand identity simultaneously.

N-Squared E-Commerce Vietnam offers full e-commerce solutions for the cosmetics industry, including:

Market research and customer behavior analysis.
Store management and SEO optimization on Shopee, Lazada, TikTok Shop.
Livestream strategy and KOL/KOC implementation.
Logistics optimization and customer service.

This enables cosmetics brands to quickly increase revenue, reduce costs, and enhance competitiveness.
📞 Contact N-Squared E-Commerce Vietnam at 028 3820 8399 for consultation and partnership!

VI. About N-Squared E-Commerce Vietnam

N-Squared E-Commerce Vietnam provides end-to-end e-commerce solutions—from strategic consulting and operations to marketing and customer service. We help brands achieve sustainable growth on Shopee, Lazada, and TikTok.

Contact Information:
📞 028 3820 8399
✉ partnership@nsqvietnam.com