South Korea Beauty and Personal Care Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

South Korea Beauty and Personal Care Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The South Korean beauty and personal care products market is projected to register a CAGR of 5.22% during the forecast period (2022-2027).

The COVID-19 outbreak in South Korea has had varying impacts across the beauty and personal care market. In 2021 South Korean beauty and personal care products sale within the country has increased more than 30% and exports rising as much as 13.6% compared to 2020. As government has announced to stay at home, the demand for home spa products of K-beauty is also high on demand. Majority of the customer has progressed their shopping choice into non-contact mobile shopping for customized cosmetics, and with this the mobile shopping for personal care and cosmetics will boost even more in the future.

South Korea is one of the world’s fastest-changing beauty markets, introducing industry-leading innovations and globally setting trends. The current trend is the rise of do-it-yourself (DIY) beauty care. As a result, DIY hair coloring, nail care, and care in other K-beauty categories are fetching new customers within the country.

Korean beauty start-ups have been able to break into the global market, owing to the huge demand for K-beauty products. K-beauty product companies are investing more on packaging of the product by making it more attractive and creative to highlight the attributes of the products. However, several companies are strategically acquiring K-Beauty start-ups and brands to stay on top of the current beauty market trends. Cleaner label products and claims, such as cruelty-free and eco-friendly, among others, have been gaining more prominence in the market.

Halal-certified natural cosmetics were initially made particularly for the communities that follow the Islamic laws, but currently, many are opting for these because of their properties. More than a religious belief, halal beauty is a lifestyle. The popularity of clean, organic, and vegan beauty has led to a rise of conscious cosmetics consumers, giving halal beauty a place to thrive. In addition, the growing health concerns due to the harmful effects of artificial ingredients used in manufacturing beauty products have been attributed to the increasing demand for halal cosmetics in South Korea, also among non-Muslim women. JNH Cosmetics was the first company in Korea to provide completely Halal-Certified cosmetic products manufactured in Korea specifically for the Muslim community. In addition, the Certification of Korean cosmetics is on the rise, aided by the number of halal certification bodies (HCBs) in the country. International bodies also recognize it, and the government is pushing exports to the Organization of Islamic Cooperation (OIC) countries, thus, making South Korea a major market for halal cosmetics, which, in turn, may boost the market studied. The natural label claims of beauty products in this country have played a decisive role in the country's growth.

The skincare segment has already witnessed significant growth in the South Korean beauty and personal care market. Additionally, the hair care segment, with products such as shampoos, conditioners, hair masks, and hair serums, is also gaining momentum. This is majorly due to the consumer's desire to maintain healthy hair. The market is greatly influenced by innovation in packaging and design. The growth of retail and e-commerce is helping expand the market further in the country. Additionally, consumers are demanding hair care products specifically targeted towards a particular hair care need, such as the desire of consumers to explore new looks. Thus, companies are producing more efficient formulations to fuel innovations in the haircare segment.

The South Korean beauty and personal care products market is comprised of a large number of regional and global players such as Amorepacific Corporation, Nature Republic, and The Face Shop Inc. Thus, the market witnesses high competition. Further, some of the major brands such as Innisfree, Etude House, and Laneige are owned by the beauty and cosmetics conglomerate Amorepacific Corporation, which holds a prominent market share. Various players are entering the market to tap the untapped potential of the market. Advanced distribution network and manufacturing expertise give an upper edge to the manufacturers to expand their range of products across the country.

• The market estimate (ME) sheet in Excel format
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