Strengthened Regulation on Nanomaterials in Cosmetics in the EU and UK
In 2023, both the European Union (EU) and the UK tightened regulations on the use of nanomaterials in cosmetics.EU's Enhanced Regulation:
During the third quarter of 2023, the EU evaluated a list of 13 nanomaterial ingredients, adding two new substances. On May 23, 2023, the European Commission proposed regulations on specific nanomaterials used in cosmetics.
The banned substances include styrene/acrylates copolymer(nano), sodium styrene/acrylates copolymer(nano), copper(nano), colloidal copper(nano), colloidal silver(nano), materials related to gold(nano) and platinum(nano). Hydroxyapatite(nano) is set to be added to the restricted substances list.
UK's Enhanced Regulation:
In the UK, before launching a cosmetic product containing nanomaterials, brands must now notify the Secretary of State 6 months in advance.
UK's Enhanced Regulation:
In the UK, before launching a cosmetic product containing nanomaterials, brands must now notify the Secretary of State 6 months in advance.
Key nanomaterials include platinum, copper, silver, gold, materials related to silica, and hydroxyapatite. The deadline for submitting silica-related nanomaterial information is June 27, 2025, and for other nanomaterials, it is December 22, 2023. The purpose of these tightened regulations is to protect consumers' health and the environment.
Cosmetic manufacturers must adhere to these updated rules to ensure product safety and gain consumer trust.
Booming Men's Cosmetic Market: Focus on K-Beauty Indie Brands
The men's cosmetic market is booming, and the term "Grooming Tribe" has emerged, referring to men investing in their appearance. According to recent data from CJ Olive Young, the proportion of first-time male customers has increased by 1.5 times from 2021, reaching 30%. Lotte On reported a doubling of men's cosmetics sales.Market research firm Euromonitor's data predicts that by 2023, the domestic men's cosmetic market size will be approximately KRW 1.1 trillion.
Retailers Olive Young and Lotte On, recognizing the growth of the men's cosmetic market, are reaching out to male customers through various events and promotions. Olive Young is hosting special online and app events, while Lotte On offers special promotions in their beauty sections.
Meanwhile, in the K-Beauty scene, indie brands are gaining attention. Brands like COSRX, Chosungah Beauty, and Dalba have seen sales exceeding KRW 200 billion this year, showing rapid growth. A standout brand called 'Graphen' from SESSION is especially popular in Japan and Southeast Asia. SESSION has been successfully capturing foreign markets with its AI-based "Beauty Growth Hacking" program.
This explosive growth in the men's cosmetic market and the success of K-beauty indie brands herald a new trend in the beauty industry, and the market's future looks promising.
Meanwhile, in the K-Beauty scene, indie brands are gaining attention. Brands like COSRX, Chosungah Beauty, and Dalba have seen sales exceeding KRW 200 billion this year, showing rapid growth. A standout brand called 'Graphen' from SESSION is especially popular in Japan and Southeast Asia. SESSION has been successfully capturing foreign markets with its AI-based "Beauty Growth Hacking" program.
This explosive growth in the men's cosmetic market and the success of K-beauty indie brands herald a new trend in the beauty industry, and the market's future looks promising.
Cosmetics Industry Turns Eyes to 'Indie Brands' and 'Non-China Markets'; China's Market Shows Weakness
The second quarter of 2023 marked a period for the cosmetics industry to pay attention to 'indie brands' and markets other than China.According to Kiwoom Securities' researcher Jo Sojung, cosmetic companies, especially those in the OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) sectors, have shown impressive performances during this quarter. In contrast, luxury brands operating primarily in China have failed to meet expectations.
While overall domestic cosmetics exports increased by 6% compared to the previous year, exports to China dropped by 16%. On the other hand, exports to non-China regions saw a 24% increase. Cosmetic sales within China decreased by 4.1% from the previous year, with online sales also seeing a 16.9% drop.
Although the resumption of group tourism from China is expected to positively impact the cosmetics industry, major brands have yet to see performance improvements in the Chinese market. In contrast, OEM and ODM companies are expected to see profitability improvements due to increased domestic cosmetic consumption and operational leverage.
Researcher Jo predicts continued focus on 'indie brands' and 'non-China' markets in the cosmetics industry and especially recommends investing in OEM and ODM sectors. She favors stocks like Cosmax and Korea Kolmar and has shown interest in C&C International and Cosmecca Korea.
Although the resumption of group tourism from China is expected to positively impact the cosmetics industry, major brands have yet to see performance improvements in the Chinese market. In contrast, OEM and ODM companies are expected to see profitability improvements due to increased domestic cosmetic consumption and operational leverage.
Researcher Jo predicts continued focus on 'indie brands' and 'non-China' markets in the cosmetics industry and especially recommends investing in OEM and ODM sectors. She favors stocks like Cosmax and Korea Kolmar and has shown interest in C&C International and Cosmecca Korea.
Comments
Post a Comment