Chinese brands surge in Southeast Asia amidst fierce competition

Skincare brands from China grew 115% CAGR from 2019–2024.

Chinese companies are rapidly expanding across Southeast Asia, using pricing and product innovation to challenge established players, according to a new whitepaper by Euromonitor International.

The report, The Rise of Chinese Brands in Southeast Asia, focuses on the ASEAN-6 economies — Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam — which make up 95% of Southeast Asia’s $4t GDP.

“Chinese companies are rapidly gaining ground in the region, particularly in sectors where they hold clear competitive advantages—electric vehicles, consumer electronics, and home appliances,” said Tim Chuah, senior global insight manager at Euromonitor.

“More recently, with Chinese brands’ aggressive expansion into industries such as beauty, food and foodservice, incumbents face new challenges that are reshaping competition across Southeast Asia,” he added.

In air conditioning, Chinese brands grew their market share from 9% in 2015 to 25% in 2024. Japanese firms lost 7% during the same period.

In the beauty sector, Chinese brands posted a 115% compound annual growth rate (CAGR) in the Southeast Asian mass skincare market from 2019 to 2024, driven by low prices and digital-first strategies.

Chinese food and beverage brands are capitalising on Southeast Asia’s growing demand for coffee, milk tea, snacks, and dairy products. These categories are seeing double-digit growth, with the beverage segment expected to grow 9% annually through 2029.

Chinese pet care companies are also entering the market with their own brands. The Southeast Asian pet care industry is projected to grow at a 9% CAGR from 2025 to 2030.

Chinese digital wallets remain popular with tourists but have limited use amongst locals due to strong domestic alternatives. Success in this space will depend on forming partnerships with local players.