South Korea Cosmetics Market Share, Growth, Forecast: By Category: Skin Care, Hair Care, Bath and Shower, Makeup and Colour Cosmetics, Deodorants and Fragrances, Others; By Price Category: Mass, Premium; By Gender: Male, Female, Unisex; By Distribution Channels; Competitive Landscape; Industry Events and Developments; 2024-2032

South Korea Cosmetics Market Outlook

The South Korea market for cosmetics reached a value of more than USD 17.45 billion in 2023.The South Korea cosmetics market is expected to reach USD 28.02 billion by 2032 and grow at a CAGR of 5.4% between 2024 and 2032.

News and Developments in the Market

• One of the leading beauty product brand Kolmar Korea  will soon be launching cosmetics for people of the Muslim culture to expand their reach in the United Arab Emirates. The company has established Halal-certified manufacturing set up in their manufacturing plants to meet the Halal Assurance guidelines as demanded by the Business Point Consultancy (BPC) of the United Arab Emirates. The products will be available on BPS's online shopping platforms.

• An International Packaging Exhibition, the ‘Korea Pack ’, was organized at KINTEX in Goyang. Six hundred packaging manufacturers from many countries participated in the annual exhibition. They presented the technologies related to the packaging equipment, packaging materials and goods, and unique and new packaging technologies employed in packaging food, pharmaceutical, and cosmetic products, among others. Companies of various nations, such as India and Italy, exhibited their latest and leading packaging technologies at the exhibition.

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Key Trends in the South Korea Cosmetics Market

Cosmetics and personal care items are used on the human body to clean, beautify, increase attractiveness, or alter its look. Cosmetics and personal care items, which include everything from deodorants, perfumes, make-up, and shampoos to soaps, sunscreens, and toothpaste, play an essential role in all almost all age groups.

The Rising Popularity of DIY Since COVID-19

DIY or Do-It-Yourself beauty care is another trend which especially blew up since the COVID-19 pandemic, and in order to prevent the spread of coronavirus, many people are inclined toward DIY hair care, hair dye, nail and foot care, nail extensions and many others. Its prominence has been further driven by social networking sites such as Kakao Talk, Instagram, TikTok, and YouTube, among others. Social media influencers act as catalysts and encourage viewers to try different DIYs, which drives the cosmetics market growth.

High Beauty Standards and Celebrity Influence

Hallyu, or the Korean wave, is another prominent factor influencing people to try Korean makeup and food. Over the past decade, K-Pop, and K-dramas have gained an enormous fan following overseas as well, which has also helped the cosmetics market grow exponentially. Many brands now hire celebrities for endorsement. A cosmetic brand called VT Cosmetics gained immense popularity after collaborating with the sensational global group BTS .

Beauty is an essential part of Korean culture and plays a significant role in landing a job. For this reason, both men and women invest a good amount of money in skincare and cosmetics products. Some even resort to cosmetic surgery to achieve the Korean Beauty standards. This is the most prominent factor propelling the growth of South Korea cosmetics market.

Continuous Innovation and Development of New Cosmetic Products

Manufacturers put a lot of emphasis on the research and development of cosmetics with more effectiveness to meet consumers' growing demand. Korean Beauty gained much popularity when they invented BB creams and cushion-based compacts . Since then, Korean cosmetic products have gained the attention of western brands and consumers for their innovations in the cosmetics industry. These days, many cosmetic brands are trying to inculcate organic and natural ingredients such as flowers, and snails, among others. People of South Korea are now much more inclined toward light or nude makeup to get a natural look. Such continuous innovations contribute to the cosmetics market growth in the country.

Opportunities in the Market 

Growing Demand of Eco-friendly, cruelty-free, and Clean Labelled Cosmetics’ Packaging

With the growing environmental concerns and consumer awareness regarding sustainability, many manufacturers have launched products with natural ingredients packed in eco-friendly packaging. Environmentally conscious consumers are on the rise in the country, propelling manufacturers to follow a sustainable approach. The chemical and energy company Hanwha Solutions  subsidiary of Hanhwa Group, teamed up with Kolmar Korea and Yeon-U, a leading cosmetic brand and cosmetics container manufacturer. The partnership is aimed to boost the supply of sustainable cosmetics containers and replace 50% of the standard plastic packaging produced by Kolmar Korea by 2030. Furthermore, Vegan, cruelty-free, and clean-labelled beauty products are gaining traction in the South Korea. Also, microbiome beauty and skincare products are also in trend these days as they aid in boosting the immunity of the skin. Sustainable cosmetics are gaining a significant share in the South Korea cosmetics market owing to consumers’ awareness.

Excellent Internet Access Along with AI and AR bolstering the Beauty Tech Industry in South Korea

The broadband penetration and smartphone ownership are high in South Korea, and people are updated with the latest makeup and skincare trends through social media websites and apps, which also augments the market growth. According to the Korean National Statistical Office, in 2021, the payments for cosmetics products through online mode reached more than 14.2 billion. Hence companies heavily promote their cosmetics via social media platforms. Moreover, with the rising technological advancements, the beauty tech industry is also expanding in the country. Amore Pacific joined hands with AI/AR (Artificial Intelligence/ Augmented reality) company called Perfect and installed AI/AR mirrors in the showrooms for the customer to try on different cosmetics virtually and also get their skin analysis done for the customized skincare recommendations. Such customised and technologically advanced skincare services attract youth and tech-savvy people to invest in skincare and cosmetics products, thereby contributing to augmenting the South Korea cosmetics industry.

Government’s Norms Regarding Packaging to Promote Sustainability

Since 2019, the South Korean government has regulated the Recycling Act in the country, which has banned the usage of PVC and coloured PET containers. As per the Ministry of Food and Drug Safety (MFDS), there are approx 1040 ingredients which are not permitted to be used in both functional and regular cosmetics products for the safety of citizens. The regulation of this act has augmented the sales of sustainable cosmetics in the conmetics industry.

Challenges in the Market

Fast Paced and Highly Competitive Market

The South Korea cosmetics market is a very fast-paced and dynamic industry, and the trends change rapidly. Hence the manufacturers get very little time to address the ever-changing needs of the consumers. Moreover, start-ups must equip themselves with the latest tools and technologies in this competitive market. The South Korea cosmetics market is incredibly cutthroat. Hence, the companies have to be very receptive to the changing beauty and makeup trends while ensuring good quality and regulatory compliance and launch the products at the best prices in very short duration to lead in the market. Therefore, to lead the market, organisations highly respond to the shifting trends in the South Korea cosmetics industry while maintaining high standards of quality and legal compliance. Products must also be launched in a short duration and at the best prices.

Market Analysis

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Based on category, the South Korea cosmetics market is divided into skin care, hair care, bath and shower, makeup and colour cosmetics, and deodorants and fragrances, among others. Skin care is further classified into face care products, body care products and lip care products while the hair care is category is divided into shampoo and conditioners, among others. Bath and shower category is segmented into soaps, and shower gels, among others.

Based on price category, the South Korea cosmetics market can be segmented into mass and premium. On the basis of gender, the market can be bifurcated into male, female and unisex. Based on distribution channels, the market can be classified into hypermarkets and supermarkets, specialty stores, pharmacies/drug stores, and online, among others.

• Procter & Gamble Company

• LG Household and Health Co., Ltd.

• ABLE C&C, Inc.

• Korendy Cosmetics Inc.

• Amorepacific Corporation

• Others

Market Share by Category

K-pop and K-dramas have grown the prominence of beauty and skincare products among the general population. Korean beauty standards are pretty high, providing significant impetus to all industry segments. Products such as skin care, hair care, bath and shower, makeup and colour cosmetics, and deodorants and fragrances, among others, have a prominent market share and are expected to perform well during the predicted period. The demand for hand creams and lotions grew during COVID-19 due to the frequent use of hand sanitiser. These factors offer opportunities for manufacturers to increase production to meet the rising demand in the South Korea cosmetics market.

Furthermore, celebrity endorsements along with sustainable packaging help in attracting environmentally conscious people. This factor is further promoted by the regulatory laws that ban harmful plastic usage in South Korea.

Market Share by Price category

Based on price, the cosmetic products market of South Korea is divided into two categories which are mass and premium. Factors such as high disposable income and living standards greatly influence the market share of both segments. Mass-produced cosmetics secure significant share while the premium segment continuously expands in the country.

Market Share by Gender

Since outer beauty matters in Korean society, people wear light makeup daily, leading to higher consumption of beauty and skincare products. Unisex cosmetics are also gaining momentum. Many renowned brands follow the path of innovation and set up artificial intelligence and augmented reality-based devices, which attract young and tech-savvy people to try the products and services. The unique and technological advanced cosmetics are making a great impact on the cosmetics market outside the country. All genders use these products. However, the highest consumption is by women.

In South Korea, men's beauty practises typically incorporate cosmetics, such as lip balm, BB cream, and eyebrow makeup. Making a good first impression at social gatherings and job interviews is crucial. Regular beautification treatments are also popular among men, which also propels the South Korea cosmetics market.

Market Share by Distribution Channel

The growth of e-commerce is expected to be driven by the ease of use and doorstep delivery. The consumers also get to get to explore numerous cosmetics brands according to their budget. Retail industry however grows more aiding to the factors such as ease of trying different products before buying.  When shopping for health or beauty items in Korea, Olive Young provides everything consumers require. Olive Young has everything from skin care to food and beverages to cosmetic accessories and beauty products. Apart from Korean cosmetics, they also provide imported cosmetics from other countries. People who own a CJ membership card may also receive cash back discounts, which makes them one of the leading stores in South Korea.The distribution channels available in the industry are hypermarkets and supermarkets, specialty stores, pharmacies/drug stores, and online, among others.

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Competitive Landscape

Korendy Cosmetics Inc.: Korendy Cosmetics Inc. is a start-up company based in South Korea. The company was established in 2015 and aimed to provide the latest and trendiest cosmetics in South Korea and all around the world. The brand sells natural, organic, and vegan cosmetics as well.  

Amorepacific Corporation: A subsidiary of Amorepacific Group Inc, Amorepacific Corporation is known for its high-quality beauty and personal care products. Innisfree, Etude, Fresh Pop Ryo, and Manonde, among others, are the names under which the company sells its products. It is based in Seoul, South Korea and has branches in Asia-Pacific countries and France, the US, Canada, Australia, and Russia, among others. At present, Amorepscific id the world’s 12th biggest cosmetic company.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.