Korean Beauty Trends & Industry News: 24-01-08

Korea's Men's Beauty Market Continues to Grow, Setting Global Consumption Record

In Korea, there's a rising trend in men's grooming and skincare, leading to a significant boost in the beauty industry's revenue. According to Euromonitor, in 2022, South Korea recorded the highest per capita consumption of men's skincare products globally, averaging $9.6 per person, surpassing countries like the UK and Denmark.

The Korean men's beauty market saw an increase from 1.105 trillion won in 2022 to 1.11 trillion won last year, with projections reaching 1.121 trillion won this year. CJ Olive Young reported a 30% increase in sales of men’s beauty products last year, attributed to the diversified purchasing patterns of men in their 20s and 30s, expanding from basic skincare and shaving products to makeup, lip balms, and hair treatments.

Cosmetic companies are aggressively launching and enhancing men's exclusive brands. AmorePacific's men's total styling brand "Biready" targets men in their twenties with products like cushions and foundations. Biready has seen a consistent growth in its portfolio with an average annual growth rate (CAGR) of 76.9% from 2020 to last year.

Aekyung Industry's "Sneaky" brand is now available in Daiso stores, offering men's foundations, concealers, sunscreens, and lip balms. Nature Republic and ISOI have also revamped and relaunched their men's cosmetic lines.

Hoo Yang, Euromonitor's Beauty and Health Insight Manager, noted the global increase in male beauty consumers, influenced by social media and the trend towards natural-looking makeup. This trend predicts continued growth in the men's cosmetics market.

Cosmetic Industry Faces Price Increases from Luxury Brands to Mass-Market Products

From the start of the year, cosmetic prices in Korea have been on the rise. AmorePacific's Etude announced price increases for 18 items, including cleansing products, with hikes ranging from 16.6% to 40%, citing raw material and labor cost increases.

LG Household & Health Care is also raising prices for some products from its CNP and Beyond brands by up to 5.9%. Last November, prices for some products from brands like Su:m, OHUI, Belif, and The Face Shop were increased by an average of 4-5%.

Luxury brand Chanel has announced a 5-10% price increase for its cosmetics and perfumes, with its iconic No. 5 fragrance expected to approach 300,000 won. Lipstick prices are also anticipated to rise.

These price hikes in the cosmetic industry are attributed to global inflation and fluctuations in exchange rates, leading to increased costs of raw materials and other production expenses. Industry insiders state that rising costs in raw materials, shipping, and labor leave no option but to raise product prices, impacting consumers who will now face higher costs for cosmetics.

CES 2024 to Feature Largest-Ever Integrated Korean Pavilion, with Spotlight on Cosmetic Industry

At 'CES 2024' in Las Vegas, the Korean Ministry of Trade, Industry, and Energy, along with KOTRA, are set to establish the largest-ever integrated Korean pavilion. This year's CES, the world's largest exhibition in the ICT and electronics field, is expanding its scope to include mobility, health, and beauty sectors.

Under the theme "All Together, All On," the focus is on the impact of AI technology advancements across various industries. Major corporations like Samsung, LG, Hyundai, and SK, along with numerous small and medium-sized enterprises (760 in total), will participate. For the first time, 32 institutions and 443 companies will join the integrated Korean pavilion.

The cosmetic industry is a significant part of this exhibition. Korean cosmetic companies are expected to leverage this global platform for brand marketing and exploring new export markets.

Korean companies have achieved an all-time high in winning CES Innovation Awards, with 143 out of 310 companies (about 46%) being honored, including innovative firms like Woncom and Mandro. KOTRA is supporting these small and medium-sized enterprises through one-on-one mentoring and sharing insights from previous award winners.

On January 10th, KOTRA will host 'K-Innovation Day,' facilitating interactions with global corporations like IBM, Walmart, and FedEx, and organizing pitching challenges to enhance the performance of participating companies.

Jo Ikno, a trade policy official, emphasized the significance of establishing the largest integrated Korean pavilion and winning CES Innovation Awards for boosting exports and expanding the domestic industry's global footprint.

Corporate Punishment Unviable for Attempted Tech Leak, Rules Supreme Court

The Supreme Court of South Korea has confirmed a 10-month prison sentence for a former executive, A, of Intercos Korea, who attempted to leak core technology from Korean Colmar. However, the court ruled that corporate punishment is not applicable as the tech leak was only attempted and not completed. This decision is based on the Unfair Competition Prevention Act, which stipulates that corporate punishment under joint penalty provisions only applies if an actual breach occurs, not for attempted violations.

A, after moving from Korean Colmar to Intercos Korea, attempted to produce products using the leaked technology but failed. A colleague, B, who assisted in the crime, received a six-month suspended sentence. Initially, Intercos Korea was fined 10 million won, but the Supreme Court overturned this, sending the case back to the Suwon District Court.

The ruling clarifies that the joint penalty provisions do not apply to corporate entities if the technology theft remains in the attempt stage without actual production, reaffirming a key legal principle in cases of industrial espionage.