Page 33 - EM - Export Magazine Perfumery Edition

R R E E P P O O R R T T

With its vast market size, Asia presents significant opportunities Smaller Asian economies such as Indonesia, Malaysia and
for beauty brands, but entry into individual markets requires a Thailand have much to offer due to their economic growth
localised, culturally sensitive, and strategic approach to cater and expanding consumer bases. From 2020 to 2040, Asia’s
to the unique preferences and needs of each country. emerging markets are expected to increase their GDP from
23% to 30%, mainly driven by China’s growth. Indonesia and
GENERAL OUTLOOK FOR Vietnam are set to more than double their GDP, while India
ASIAN EMERGING MARKETS and the Philippines are expected to see the strongest growth
SOuTH EAST ASIANS DEMAND GREATER rates and triple their GDP. However, there are challenges to be
ATTENTION TO CuSTOMER TYPE AND faced, such as slow productivity growth due to skills shortages,
MORE ACCESS TO LOCAL & PREMIuM BRANDS insufficient infrastructure development, and the growing risks

For the past two decades, Asia’s emerging markets have been of climate change in coastal and island nations in the region.
dynamic, and this trend is expected to continue despite growth While GDP and consumer spending are on the rise, living
rates potentially slowing as economies mature. By 2040, it is standards still lag behind those of advanced economies.
forecasted that Asia will contribute nearly a third of global Opportunities for post-COVID growth involve shifting towards
GDP and over a quarter of consumer spending as over one more service-oriented growth models, as seen in the Philippines.
billion people enter the consumer class between 2021 and Even in places such as Thailand, where manufacturing remains
2040, totalling 2.7 billion consumers by 2040 and presenting essential, services are becoming increasingly important. In
significant opportunities for businesses and investors. Vietnam, both manufacturing and services sectors are poised