South Korean pharmaceutical companies are jumping into cosmeceutical market as the marriage between cosmetics and pharmaceuticals is in the limelight as a new blue ocean to follow a boom in the health supplement market.
A relatively low barrier of market entry and rosy expectations about the fast-growing market are fueling their hope.
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According to industry sources, Dongkook Pharm launched a new cosmetics brand Centellian 24 in 2015 and began to market Madeca Cream inspired by its madecassol ointment for scar treatment. The company is poised to size up the new business line late this year.
Daewoong Pharm is also on track to increase its presence in the functional cosmetics market under the brand of Easydew run by its subsidiary DNCompany.
Since its launch of Easydew DW-EGF Cream for distribution via home shopping channels last October, the company has diversified product items selling moisturizers, cream lotions and body washes.
Daewoong Pharm raked in 47.2 billion won (US$41.73 million) from cosmetics business alone last year.
Yuhan Corp. is speeding up its entry into the cosmetics market. The company formed a preparation team last year and established beauty and health subsidiary Yuhan Philia in May 2017.
Other pharmaceutical and biotech companies conducting or prep to conduct business in the cosmetics market include JW Pharm, Pharmicell, Ahngook Pharm and Bukwang Pharm.
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The global cosmeceutical market is estimated to be worth 35 trillion won, about 13 percent of the cosmetics market.
The cosmeceutical market in Korea is valued at about 500 billion won, a 2.9 percent of the local cosmetics market, suggesting there is more room for growth.
(Source: Pulse News )