Skip to main content

Korean Beauty Trends & Industry News: 24-01-02


K-Beauty's Small Indie Brands Thrive in Global Market

In 2023, Korean beauty (K-Beauty) continues to captivate the global market, with small indie brands showing remarkable growth. Leading companies in Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM), such as Kolmar Korea and Cosmax, achieved record-breaking performances this year. Their success is closely linked to the rising demand for small indie beauty brands. In contrast, industry giants like Amorepacific and LG Household & Health Care faced lower performances due to high prices and reduced consumer spending.

According to the Ministry of SMEs and Startups, these small enterprise cosmetics have shown double-digit growth rates in markets outside China, including the U.S., Japan, the European Union (EU), the Middle East, and the Commonwealth of Independent States (CIS). A key player in this growth has been CJ Olive Young, which has become a must-visit shopping destination for foreign tourists, with indie brands making up over 80% of its offerings. Olive Young has also transformed its Myeongdong store into Korea’s first global specialty store, further cementing its position as a K-Beauty hub. Olive Young's global online sales also grew by 30% compared to the previous year.

The outlook for K-Beauty in 2024 is highly positive. The Korea Health Industry Development Institute predicts a double-digit increase in cosmetic exports to North America, Europe, and Latin America. Similarly, KOTRA anticipates a more than 10% increase in cosmetic exports. This growth is attributed to the rise of indie beauty brands, directly linked to K-Beauty's popularity in international markets.

In China, Amorepacific and LG Household & Health Care recorded disappointing performances. Consequently, these companies are planning to focus on strengthening global business capabilities and exploring new markets. Amorepacific plans to expand its activities centered on North America, Japan, and the EMEA region, while LG Household & Health Care is seeking new growth engines in overseas markets.

Overall, the K-Beauty industry, driven by the success of small indie brands and diversification in global markets, is experiencing significant growth. This trend highlights K-Beauty's position not just as a part of the Korean Wave but as a globally popular industry, with strategic moves from manufacturing and sales companies expected to continue in the future.


Shinsegae Duty-Free Supports Over 70 Small Beauty Enterprises

Shinsegae Duty-Free is actively supporting the entry of domestic small businesses into large distribution networks by participating in the SMEs cooperation project under the Ministry of SMEs and Startups. Through this collaboration, products from over 70 selected small beauty enterprises will be sold at up to 50% discounted prices in Shinsegae Duty-Free’s online and offline stores. Brands like Torriden, Anua, Skin Angel, Ground Plan, and Donggubat are included.

Since its establishment in 1995, the SME Distribution Center has been operating various support projects for market entry and capability enhancement of small businesses. Shinsegae Duty-Free plans to strengthen cooperation with the SME Distribution Center to further support small businesses.

A Shinsegae Duty-Free representative expressed excitement about this collaboration, stating, "Through this partnership, we are pleased to introduce competitive domestic small business products to foreign tourists. We aim to create opportunities for mutual growth by expanding the duty-free market access for these enterprises." This cooperation is expected to provide new market opportunities for domestic small businesses while offering consumers a variety of quality products at affordable prices.


Namwon City to Boost Natural Cosmetic Industry with New Testing and Clinical Trial Center

Namwon City in North Jeolla Province is pushing forward with the construction of the Natural Cosmetic Testing and Clinical Trial Center, securing a total project cost of 19 billion won, including 4 billion won in national funding for 2024. This initiative results from the city's persistent efforts in collaboration with the Ministry of Health and Welfare, the Ministry of Strategy and Finance, and Congressman Lee Yong-ho.

In 2023, Namwon secured 510 million won for the detailed design of the center, planning to complete it by January 2024 and finish the facility construction by 2025 with the newly secured national funding.

The center, with a total floor area of 4,261 square meters over four floors, will provide one-stop services including testing, certification, and skin clinical trials, especially targeting small and emerging businesses in the southern region, including North Jeolla, Gwangju, South Jeolla, and South Gyeongsang provinces.

Following the completion of the Cosmetic Business Rental-type Knowledge Industrial Center in July 2022, this new center is expected to attract promising cosmetic companies and create local jobs. Mayor Choi Kyung-sik of Namwon City has plans to solidify the city’s position as a hub for the cosmetic industry in the southern region and transform the local industrial ecosystem into a bio-industry, focusing on the development of natural bio-materials.
Location: 대한민국

Comments

Post a Comment

Popular posts from this blog

Which sunscreen should I use, Inorganic or Organic?

Overview There are mainly two types of sunscreen: Physical and Chemical.  Inorganic sunscreens are also called Physical Sunscreen or Mineral Sunscreen. Organic sunscreens are also called Chemical Sunscreens. A term Inorganic and organic are derived from chemistry. * Organic Chemistry: The Study of Molecules Based on Carbon, Hydrogen, and Nitrogen * Inorganic Chemistry: The study of compounds other than organic chemicals A sunscreen can, of course, have both of these functions. It is called a Mixed sunscreen or a Combined sunscreen, and these days, many brands are developing products like this. Through this post, let's find out what inorganic and organic sunscreens are, and what sunscreens are most suitable for one to use. The difference between inorganic and organic sunscreen. Inorganic sunscreen is a sunscreen that forms a protective layer on the surface of the skin to block ultraviolet rays before they penetrate into the skin. Most product contains titanium dioxide and zinc oxid...
Post a Comment
Read more

Misleading Claims in Microneedle Skincare Products: 82 Cases Identified

     Recently, microneedle skincare products have gained significant popularity, but Korea’s Ministry of Food and Drug Safety (MFDS) has uncovered that over 80% of these products being sold online are making false or exaggerated claims. After reviewing 100 online posts, the MFDS found that 82 of them violated Korea’s cosmetics regulations, leading to requests for the posts to be blocked by the Korea Communications Standards Commission. The misleading advertisements primarily claimed that microneedles could penetrate deep into the skin layers or promised immediate pore reduction, both of which are not scientifically validated for general cosmetic products. Microneedles are a medical technology designed to deliver substances into the deeper layers of the skin, typically used in drugs and medical devices. However, in the cosmetics industry, these products generally do not have the same capabilities. Some companies falsely advertised their products as having effects similar t...
Post a Comment
Read more

Korean Beauty Trends & Industry News: 24-05-08

Cosmax Leads in Cosmetics with New Hair Loss Evaluation Technology      Cosmax, a South Korean cosmetics company, has announced the development of a novel hair loss evaluation method using "hair and follicle mimicking organoids." This technology was showcased at the 2024 Organoid Developer Conference in Seongnam, Gyeonggi Province last month.  Organoids, made from stem cells, excellently replicate human cellular structure and function. In collaboration with OrganoidScience, Cosmax has successfully recreated androgenetic hair loss symptoms by introducing growth factors into reprogrammed stem cells to create a scalp mimic.  Furthermore, their proprietary ingredient "Soyact" has been validated for its effectiveness in suppressing male pattern baldness and received non-prescription functional certification from the Korean Ministry of Food and Drug Safety. Cosmax sees this technology not only advancing hair loss treatment materials but also setting a new standard in ...
Post a Comment
Read more