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REPOR T

As mentioned earlier,
Korean consumers love BEAuTy EXPoRT VALuE
global brands. There is a fRoM SouTH KoREA
great demand for foreign 2021, By DESTINATIoN
cosmetic products in Korea.
In a 2022 report, imports of
global cosmetics into Korea
were reported at $1.5 billion.
France came in #1 at 30%
with $453 million worth of
imports, The United States
registered 2nd at 23% with
$345 million, and Japan was
3rd at 17% with $257 million.
Of these cosmetic imports, close to half of the imports are KEy TRENDS: PREMIuMISATIoN,
for skincare cosmetics. Haircare products came in 2nd at SuSTAINABILITy, & PRoDuCTS
15%, colour cosmetics at 14%, and perfumes at 11%. Foreign BRANDED AS “gENDERLESS”
cosmetic brands such as Dior, yves Saint Laurent, Chanel, Estée Natural and plant-based skincare has been popular amongst
Lauder, and L’Oreal have found great success in South Korea. Koreans for some time and continues to be so, as consumers
Global brands have also been known to acquire Korean are more cautious when it comes to synthetic chemical
beauty companies. Estée Lauder bought Dr. Jart+ in late 2019 components. This has led to a greater demand for higher-quality
for $1.1 billion. Goldman Sachs bought a minority stake in ingredients at a premium price point. Consumers have opted
GP Club Co., makers of Kbeauty facemasks. Unilever, NIVEA, for premium versions of products in fragrances, additives, and
and L’Oreal also have stakes in Korean cosmetic companies. hand care, in addition to the traditional category of skin-care.
For example, L’Oréal Group has launched a new K-beauty Premium fragrances such as Jo Malone, Byredo, Le Labo, and
brand called Shihyo and looks to target North Asian shoppers Tom Ford are aggressively expanding their consumer base.
across “beauty-intense” regions. In March of 2023 (this year), By limiting the retail channels available, including department
competition was fierce to acquire a controlling stake in Able stores and official websites, certain brands have been able
C&C, (the operator of a host of Korean budget cosmetics to maintain their higher-end price strategy and positioning.
brands) with global beauty giants such as L’Oreal and LVMH Fragrance houses also offer wide product lines and launch new
reportedly joining the race. Five to six strategic international scents, as well as expand into other categories.
investors submitted their letters of intent to purchase 59.2 High-end premium beauty and personal care brands are
percent of shares in Able C&C, (owned by IMM Private Equity) expected to prosper more than entry-level brands. High-tier
according to industry sources. In conclusion, although local brands are maintaining consumer loyalty. As a result, higher-
brands have grown increasingly popular, some analysts argue, end brands such as Gucci Beauty, Tom Ford, and Hermès
there is more synergy than competition with global brands. Beauty are expected to gain consumer interest, while brands
such as Calvin Klein and Marc
Jacobs are expected to lose
foREIgN CoSMETIC BRANDS THAT HAVE fouND share to other brands.
gREAT SuCCESS IN SouTH KoREA Today, more local companies

are making sustainability
a key part of their brand
offer. The country’s leading
drugstore Olive young
supports the clean movement
by operating dedicated
sections for Clean Beauty and
Vegan Beauty. The retailer
holds annual Beauty Awards
to recognize brands with
sustainability claims.
Genderless products are
also trending, attracting both
the millennials and Gen-Z

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