South Korea’s beauty market is set to reach almost US$3 billion in value terms by 2025, on the back of strong growth in the nail make-up category and local consumers’ investment in innovative product offerings.
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The South Korean make-up market is projected to grow at a compound annual growth rate (CAGR) of 9.2 percent from US$1.8 billion in 2020 to US$2.9 billion in 2025, according to GlobalData, a data and analytics company, adding growth will be driven by novel and innovative ‘K-beauty’ products.
The nation’s cosmetics market is also currently upheld by the growth of the nail make-up category, which is forecast to register the fastest value CAGR of 9.9 percent during 2020–2025, according to GlobalData’s ‘South Korea Make-up – Market Assessment and Forecasts to 2025’ report.
The nails category is followed by the lip make-up category, which is expected to record a CAGR of 9.4 percent during the same period, said the research firm.
“K-beauty has been constantly evolving. South Korean consumers are highly demanding and willing to experiment, thus forcing manufacturers to focus on offering novel and innovative products with unique skin-friendly ingredients,” said Sukanyashri Kabali, Consumer Analyst at GlobalData.
“Furthermore, the Covid-19 outbreak raised health concerns among consumers increasing the demand for natural ingredients such as fruit extracts, which contain vitamin C and other essential nutrients,” continued Kabali.
The report also revealed that South Korean beauty shoppers preferred shopping online via e-retailers for new products in 2020, followed by health & beauty stores and department stores.
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Amorepacific Corporation, LG Corp and The Estee Lauder Companies Inc. were the top three companies in the South Korean make-up market by value in 2020 while The Face Shop and Sulwhasoo were the leading brands.