Korean Beauty Trends & Industry News: 24-07-03

The K-Beauty Revolution Conquering the Global Beauty Market

    Korean beauty products, known as K-Beauty, are rapidly rising in the global beauty market. By the end of last year, the number of cosmetic companies in Korea exceeded 31,524, tripling from 10,000 in 2017 in just six years. In the first half of this year alone, K-Beauty exports reached $4.81 billion, an increase of 17.8% from the previous year, making it one of the fastest-growing sectors, behind only semiconductors, computers, and ships.

The key to K-Beauty's success lies in its rapid innovation and diverse product range. A recent example is American beauty influencer Darsie, who praised the K-Beauty brand Tirtir's dark-tone cushion foundation. Her positive review garnered over 38.8 million views and more than 10,000 comments, boosting Tirtir's new product to the top of Amazon's beauty category in the U.S. upon release.

K-Beauty's strength in the global market is its quick product innovation. Japanese retailer Ainz & Tulpe notes that K-Beauty's rapid release of new products resonates well with younger consumers. In contrast, Japanese brands often focus on steady sellers, which can seem outdated.

Korea now competes head-to-head with France in the global beauty market. Last year, Korean cosmetics held a 36.5% share of the Japanese import market, surpassing France. In the U.S., Korean products are close behind French products with a 16.5% market share. Even more impressive is the diversification of export markets. Last year, K-Beauty exports saw double-digit growth in Europe, the U.S., and Southeast Asia, with exports to the Netherlands up by 110.5%, the U.S. by 44.7%, and the U.K. by 57.7%.

Global retailers attribute K-Beauty's competitiveness to its rapid innovation. Japanese retailers have started direct transactions with K-Beauty brands, and major Japanese drugstores have set up dedicated sections for Korean brands. In Germany, a startup called YEPODA collaborates with Korean manufacturer Cosmax to launch K-Beauty products.

K-Beauty is transitioning from its initial focus on China to expanding rapidly into the U.S., Japan, Europe, and Southeast Asia, marking a new era. The resurgence of K-Beauty exports worldwide, excluding China, underscores this shift. K-Beauty is now coloring the global beauty market, establishing Korea as a key player in the industry.

Amazon Supports Global Expansion of K-Beauty

    Amazon Global Selling Korea has launched 'Project K-Beauty Go Big' to help Korean small and medium-sized cosmetic manufacturers enter the global market. This project provides comprehensive support, including product development, operational training, external service collaborations, and product launches, to enhance the online export capabilities of Korean beauty brands.

On June 26, Shin Hwa-sook, the head of Amazon Global Selling Korea, announced at a press conference in Seoul's Gangnam district, "K-Beauty sellers have the opportunity to grow further in the global market." Thanks to Amazon's support, sales of K-Beauty products on Amazon's U.S. store more than doubled from January to May this year compared to the same period last year. Over the past year, total sales of Korean cosmetic sellers on Amazon Global Store increased by more than 75%.

This project will strengthen cooperation with government agencies, cosmetic associations, and external service providers. It will also involve working with domestic manufacturers to provide education and information on product planning, manufacturing, packaging, branding, and logistics. Additionally, K-Beauty sellers will receive support with regulations, taxes, and logistics.

Since 2015, Amazon Global Selling Korea has been assisting Korean brands with their overseas expansion. The 'K-Beauty Go Big' project offers specialized support for Korean cosmetics, providing a 'one-stop' service from product planning to overseas sales. This initiative aims to help small and medium-sized manufacturers easily connect with global consumers through Amazon, reducing the challenges of exporting and allowing more focus on product development and marketing.

The popularity of Korean cosmetics is rising globally, driven by the Hallyu wave. According to the Korea Cosmetics Industry Institute, Korean cosmetic exports reached $8.5 billion last year, and the first quarter of this year saw a 21.7% increase from the same period last year, setting a new record.

Amazon Global Selling Korea will also host a 'K-Beauty Conference' on June 27 at the Intercontinental Seoul COEX, bringing together industry stakeholders to discuss export opportunities for Korean cosmetic sellers. According to Yoon Jae-ho, vice chairman of the Korea Cosmetics Association, "This new project will significantly contribute to the growth of Korean beauty brands' global business."

Shin also noted, "The secret to K-Beauty's success lies in its focus on basics, products, and consumers, continuously innovating to produce hit items like BB creams and cleansing toners." With Amazon's support, K-Beauty is poised to accelerate its global market presence.

Safety First in Choosing Baby Skincare Products

    A recent survey reveals that 7 out of 10 Korean consumers prioritize 'safe ingredients' when selecting skincare products for infants. Vegan cosmetics brand TAGA, operated by BKBros, conducted this survey through the mobile platform Kratos, gathering responses from 1,000 consumers from June 12 to 14.

According to the survey, 68.5% of respondents consider 'safe ingredients' the most important factor when buying infant skincare products. Other factors include 'recommendations from others' (13.4%), 'clinical testing' (10.1%), 'brand recognition' (6.0%), and 'reasonable price' (2.0%). However, few brands disclose the content of key ingredients, making it challenging for consumers to make informed decisions.

A significant majority (78.9%) of respondents believe that key ingredient contents should be disclosed on infant skincare products. Vegan ingredients are also crucial, with 65.9% stating that the presence of vegan ingredients influences their purchasing decisions.

Moreover, the survey highlighted the importance of ESG (Environmental, Social, and Governance) activities by cosmetic brands. About 57.1% of respondents said that the company's carbon offset activities, such as forest protection, affect their purchasing decisions. Additionally, 56.7% expressed a preference for products using eco-friendly packaging.

BKBros CEO Seo Dong-hee commented, "This survey shows that consumers value 'safety' above all when choosing skincare products for infants. We aim to establish new standards for infant skincare by eliminating harmful ingredients and increasing the content of safe ingredients."

TAGA offers vegan skincare products for infants and children, certified in South Korea, the UK, Italy, and France. All products undergo clinical testing and are composed of ingredients rated 'Excellent' by Germany's Dermatest and 'Green' by the U.S. EWG. TAGA is the only brand in the Korean cosmetics industry that discloses the content of key ingredients.