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

Korea’s Health Industry Exports Reach Record High in First Half of 2024, Driven by Cosmetics and Pharmaceuticals

    In the first half of 2024, South Korea’s health industry exports hit a record high, thanks to significant growth in the cosmetics and pharmaceutical sectors. According to the Korea Health Industry Development Institute, health industry exports totaled $12.19 billion, marking a 12.3% increase from the previous year. Notably, cosmetics exports reached $4.81 billion, pharmaceutical exports hit $4.46 billion, and medical devices exports totaled $2.92 billion.

Cosmetics exports saw an 18.1% rise, with color cosmetics exports increasing by 24% to $640 million. Pharmaceutical exports grew by 16.2%, with a 31.2% surge in bio-pharmaceutical exports to $2.68 billion. The United States and Hungary notably contributed to this growth with substantial increases in demand.

While exports of general medical devices increased, there was a 0.8% decline in overall medical device exports due to a decrease in in-vitro diagnostic device exports. However, implant exports surged by 39.8% to $480 million, achieving a record high.

Lee Byung-gwan, head of the Biohealth Innovation Planning Division at the Korea Health Industry Development Institute, projected continued growth in the second half of the year, driven by sustained demand for bio-pharmaceuticals, implants, and basic cosmetics products.

This performance underscores the health industry’s potential for continued growth and significant contributions to South Korea's economy.

COSMAX Supports Global Expansion of K-Indie Brands

COSMAX, a leading cosmetics ODM (Original Design Manufacturer) company, is actively supporting the global expansion of K-indie brands. The company provides comprehensive services ranging from product development to production and overseas export for small and medium-sized indie brands.

Currently, COSMAX partners with approximately 1,000 indie brands in South Korea. To foster mutual growth, COSMAX has implemented several strategies, including flexible minimum order quantities (MOQs). Previously, the company only accepted orders exceeding 10,000 units, but now accommodates smaller orders under 3,000 units. This shift has been facilitated by expanding automated production facilities, with the number of robots in COSMAX’s factories doubling over the past year.

In the research and development sector, COSMAX has introduced an AI-based color matching system to quickly respond to evolving customer demands. One indie makeup brand, leveraging this technology, expanded its cushion foundation color range to 30 shades, achieving top sales in Amazon's beauty category.

COSMAX also operates a comprehensive beauty information platform to help brands stay updated with domestic and international market trends. The company supports compliance with overseas regulations through dedicated teams, particularly for markets like the United States.

Furthermore, COSMAX is planning an indie brand nurturing program in collaboration with the Ministry of SMEs and Startups and the Ministry of Food and Drug Safety. The 'K-Beauty Creator Challenge,' in partnership with Amazon, aims to identify and support promising cosmetic export companies, providing mentoring and continuous consulting in research, development, and production.

COSMAX CEO Kyung Choi emphasized the importance of K-indie brands in meeting the diverse preferences of global consumers and expressed the company's commitment to elevating K-beauty’s stature worldwide.

South Korea’s MFDS Updates Sunscreen Regulations, Adds New UV Filter

    The Ministry of Food and Drug Safety (MFDS) of South Korea has announced updates to its regulations on sunscreen ingredients, including the addition of a new UV filter and enhanced usage guidelines for existing ingredients. On August 2, 2024, the MFDS revealed that it would accept public comments on these proposed changes until October 3.

The new UV filter, 'Tris-Biphenyl Triazine,' has been recognized for its safety and efficacy and is already registered in Europe and ASEAN countries. However, the MFDS has restricted its use in aerosol sunscreen products and capped its usage at 10%.

Conversely, the 'Lawsone-Dihydroxyacetone' combination has been removed from the list of approved UV filters due to safety concerns and a lack of domestic usage.

Additionally, the MFDS has introduced new or stricter guidelines for six existing ingredients, including Benzophenone-3, 2,6-Dihydroxyethylaminotoluene, Nonoxynol-9, Butylphenyl Methylpropional (Lilial), Cyclotetrasiloxane (D4), and Cyclopentasiloxane (D5). Detailed information on these changes is available on the MFDS website.

The MFDS will finalize the regulatory amendments following a review of public feedback and subsequent regulatory procedures. The new standards will take effect six months after the final announcement. Products manufactured or imported under the old guidelines can be sold for up to two years post-implementation. For Cyclopentasiloxane (D5), a three-year grace period has been granted to allow for the development of alternative ingredients, aligning with similar European regulations.

These updates aim to enhance consumer safety and product efficacy in the sunscreen market, ensuring that all ingredients meet rigorous safety standards.