The modernization of traditional herbal remedies, for instance, is seen in the case of Jamu - the Indonesian turmeric, ginger, and tamarind drink, which can now be purchased from modern retail channels such as cafes.
The beauty-from-within scene, on the other hand, is flourishing with local players launching products in this category. Examples include Thai supplement brand Vistra’s collagen product launch, Vietnamese company Traphaco’s hair supplements launch, and Malaysia’s Lumi Beauty NMN launch.
Jasryn Ng, principal South East Asia at BCG, pointed out the above when highlighting the five key trends seen in SEA during the opening ceremony of Sirio Pharma’s Chonburi factory in Thailand.
Trend one: Health takes center stage
The interest in health and wellness is driven by a growing middle class, disposable income, and a greater awareness of preventive health post-COVID.
“Number one is that we see that health is taking centre stage. There is a growing consciousness after COVID-19 to focus on health and wellness.
“We also saw that Southeast Asian government initiatives were trying to drive a healthy lifestyle, vitamin consumption, to reduce the load on the healthcare sector...We have seen that translate into an increase and a stronger growth in the vitamins and supplements market post-COVID,” she said.
The SEA supplement sector has a market size of US$6bn, with Thailand, Indonesia, and Vietnam comprising 70% of the total market.
At the same time, as market share is highly fragmented - with the top 10 players holding less than half of the total sales in most SEA markets - there is room for innovative players to challenge incumbents.
“If we look across every single country, we see still that the top 10 firms in any one country pretty much hold less than 50% of the sales in most markets.
“That means there is significant room for growth. There is room for innovative players to come in and challenge incumbents and really create disruption in the market. We see competition from both local and international players trying very hard to grow new products and new formats,” she said.
Trend two: Integration and modernization of traditional remedies
“Herbs are going mainstream with increasing integration into healthcare. People are taking up local flavors, and traditional remedies are becoming increasingly modernized,” Ng said of the second trend.
This is especially the case in Indonesia and Thailand, where both health ministries have been educating the public more about traditional herbal remedies.
In Thailand, the health ministry said in February that it was championing the use of traditional herbal medicines to reduce reliance on imported pharmaceuticals. Examples include advocating the use of turmeric for flatulence and moringa oleifera extract for coughs and phlegm.
In 2023, the government also identified a list of three ‘herbal champions’, including Andrographis, turmeric, and Thai black ginger, which it will focus on for exports into the neighbouring South East Asian markets.
In Indonesia, there are also talks of safeguarding Jamu as part of the nation’s culinary heritage.
“What we see is an exciting rejuvenation of herbal remedies among the youth. For example, in Indonesia, you can enjoy Jamu drinks traditionally taken for ailments such as cold, flu, and sore throat, in modern settings like cafes,” said Ng.
One such example is Acaraki, a cafe founded by Jony Yuwono, who aimed to make Jamu an international drink by introducing it as a delicious lifestyle drink.
In Malaysia, Penang-based Eng Chai Tong has also introduced milk tea and desserts containing peach gum, considered to have diuretic properties and can relieve stranguria and pain in Traditional Chinese Medicine.
Trend three: Beauty-from-within amplified by social media
The region is also seeing a demand for beauty-from-within products amplified by discussions and postings on social media.
Collagen, biotin, and nicotinamide mononucleotide (NMN) are some beauty supplements trending on social media.
This also shows how beauty trends are moving from makeup-focused to skincare, radiance, and “glow-from-within” style of beauty, said Ng.
“We saw this growing among influencers in the beauty supplement space, with many brands tapping on key opinion leaders to drive the uptake of their products across social media platforms.”
Trend four: Format innovation
High-dose one-a-day gummy is an example of a format innovation seen in the SEA region.
“In Malaysia and Singapore, for example, we do see a one-a-day gummy vitamin that has become quite popular, which has also received funding from players like Unilever,” Ng said, referring to the Indonesia-based gummy brand Youvit.
According to Sirio Pharma, the gummy format is especially popular for kids’ nutrition in Indonesia and for the beauty-from-within category in Thailand.
Another innovation is the “press and shake format,” where active ingredients are attached to a bottle of water and are released into the bottle just by pressing the cap, said Ng.
Trend five: E-commerce and beyond
South East Asia also has a vibrant e-commerce scene, with brands investing in online content and e-commerce platforms to market their products.
“We see that e-commerce is contributing one out of 10 sales in Southeast Asia, and we have seen strong growth for vitamins and supplements.
“From 2010 to 2024, we’ve seen, for example, Indonesia and Vietnam outpacing the growth of the Southeast Asia average,” said Ng.
One of the brands active in Indonesia’s online market, Cool Vita, is an example that has built mass recognition using TikTok, livestreaming, and product placement in mini-drama series.
This approach is also similar to trends seen in China.
“This is very much strategies that you will see in Chinese e-commerce playbooks, with the brand managing to seize the early stage boom of South East Asian commerce and launch hero SKUs by creating bespoke mini-drama series to coincide with Ramadan, which is the holiday period in Indonesia; partnering with creators to produce branded shorts; and then running professional livestream commerce to grow traffic and create excitement around the brand.
“This viral strategy has been extremely effective in this market [Indonesia] too,” she said.
