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Korean Beauty Trends & Industry News: 23-12-26


Post-COVID Cosmetic Market: Value for Money Emerges as Key Growth Factor Amid Downturn

The South Korean cosmetics market, heavily impacted by the COVID-19 crisis, continues to struggle with recovery signs remaining elusive. According to the Bank of Korea's Economic Statistics System, cosmetic purchases in August totaled 182.9 billion won, marking a post-pandemic low. This is a significant drop from the pre-pandemic levels of December 2019. The decline in cosmetic demand is attributed to the widespread use of masks and the encouragement of remote work.

The downturn in the cosmetics market persists into this year, with its share of total personal credit card payments decreasing. The outlook for next year remains bleak, with high-interest rates and reduced consumer spending on daily necessities. Major cosmetics manufacturers like LG Household & Health Care are also uncertain about a short-term recovery.

However, within the cosmetics industry, a trend of pursuing 'value for money' is becoming prominent. While premium brands may face contraction, small to medium-sized brands offering more affordable options are expected to find growth opportunities. As consumer spending slows, the fast-paced and trend-sensitive cosmetics industry is experiencing these changes more rapidly.

K-Beauty Wave in India: First Exporters and Award-Winning Achievements

KOTRA (Korea Trade-Investment Promotion Agency) is spearheading the popularity of K-Beauty in India. At the 'COSMOPROF India' event in Mumbai, where a Korean pavilion was set up for the first time, consultations worth $6 million (approximately 7.8 billion won) were recorded. This event marked the debut of Korean companies in the Indian market, with 40 domestic firms participating and creating successful business opportunities.

India, with a population of 1.4 billion, ranks as the fourth-largest cosmetics market globally. The demand for Korean cosmetics is rapidly increasing, evidenced by the emergence of distributors specializing in Korean products. Major Indian retail chains like Nykaa and Reliance Retail's Tira are also expanding the sale of Korean products.

At the COSMOPROF Awards, five Korean companies were nominated, and two won awards. This success in the Indian market proves the excellence of Korean beauty products and raises expectations for more Korean brands entering the market. KOTRA plans to expand participation in Indian trade shows to actively support K-Beauty's entry into the Indian market.

Regulatory Authority Cleans Up Over 17,000 Cases of Unfair Online Advertisements for Food and Pharmaceuticals

The South Korean Ministry of Food and Drug Safety has completed rectifying over 17,270 cases of false and exaggerated online advertisements for food, health supplements, cosmetics, and medical devices. This effort is part of a pilot project for online compliance, conducted in collaboration with the Korea Online Shopping Association, aimed at protecting consumers and fostering a self-regulating environment in the rapidly growing online market.

Participants in this pilot project included major online retailers and intermediaries such as Naver, LotteON, Interpark, Wemakeprice, Gmarket, and others. Based on the online self-regulation guidelines established in February, these companies applied and inspected the compliance requirements, making necessary improvements.

Actions were taken against 6,774 cases of online illegal distribution and false/exaggerated advertising of 10,496 food, health supplements, cosmetics, and medical devices. The Ministry plans to continue collaborating with private and government entities to expand self-inspections against unfair online advertising and illegal activities, aiming to establish a healthy online distribution culture and prevent consumer harm.
Location: 대한민국

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