Korean Beauty Trends & Industry News: 24-11-18

Compact Beauty Products Captivating Generation Z in Korea

    The Korean beauty industry is innovating to target Generation Z and young Millennials by launching compact-sized beauty products that offer affordability and practicality. Retailers such as Daiso, GS25, and Musinsa are spearheading this trend, providing a wide range of cost-effective, small-sized cosmetics.

Daiso reported a 240% increase in basic skincare sales and a 130% rise in makeup sales from January to October this year compared to the same period last year. Their products are all priced under 5,000 KRW ($3.50) and have gained significant traction among young consumers. Notable successes include Akgn Industry’s “A-Solution Calamine Spot Treatment” (10ml) and VT Ridlesh serum sold in 2ml sachets, both of which saw sold-out inventory repeatedly.

GS25, a popular convenience store chain, has strengthened its lineup with portable cosmetic products, such as Mediheal pads and the Acne For Men All-In-One Lotion. Mediheal’s pad sales rose by 124% since launch, and the acne lotion became the top-selling skincare item in its category.

Online retailer Musinsa has seen a dramatic increase in searches for compact cosmetics, with “mini tint” searches growing tenfold and “mini cushion” sevenfold year-on-year. These items appeal to younger consumers by offering affordability and portability, allowing experimentation without commitment.

Experts say Generation Z prioritizes value for money while enjoying new experiences, often opting to try smaller quantities before committing to full-sized purchases. Compact beauty products meet their needs by offering trendy, affordable options, paving the way for sustained growth in this segment.

Global Expansion: K-Beauty Export Regulation Seminar

    The Korean government, through its Ministry of SMEs and Startups and the Ministry of Food and Drug Safety, hosted the "Global Cosmetic Export Regulation Seminar" on November 13 at Lotte Hotel World in Seoul. The event aimed to address barriers caused by evolving international regulations and offer strategies to boost the export capabilities of K-beauty SMEs. Over 220 businesses attended the event, underscoring its significance.

The seminar covered key regulatory updates, including the U.S. Modernization of Cosmetics Regulation Act (MoCRA) and Indonesia's mandatory halal certification requirements. Experts provided strategic guidance on preparing export documentation, navigating on-site inspections, and adapting to regulatory changes in markets like the U.S., Europe, and China.

A highlight of the seminar was the one-on-one consultations with specialists, where SMEs could seek tailored advice for overcoming export challenges.

Ministry representatives emphasized their commitment to strengthening the global competitiveness of Korean beauty brands. "We will continue to provide diverse support mechanisms to help SMEs adapt to the evolving regulatory landscape," stated Choi Won-young, Global Growth Policy Director.

The seminar's materials are now accessible via the Export Support Center and Certification Support websites, ensuring ongoing access to critical information for K-beauty companies navigating the international marketplace.

K-Beauty’s Growing Dominance in Japan with Room to Improve

    K-Beauty continues to dominate Japan’s import cosmetics market, maintaining its position as the top category with a 30% share of total imports. Products like Torriden’s Vitamin C Brightening Masks and COSRX’s Retinol Cream have drawn considerable interest on platforms such as Qoo10 Japan's Sample Market. Both products garnered hundreds of thousands of trial requests, highlighting the high demand for Korean cosmetics in Japan.

The Sample Market platform, launched in 2021, allows Japanese consumers to try new beauty products through lottery-based free samples. Korean brands have performed exceptionally well, accounting for 70% of products registered this year. This service has enhanced Korean brands' visibility among young Japanese consumers, helping solidify K-Beauty's market presence.

Korean cosmetics also lead in the color makeup category, recording a 55.3% sales increase this year. Lipstick sales grew by 115%, making Korea the only country to achieve triple-digit growth in this sector. However, challenges remain in areas like fragrance and haircare, where French and Thai products dominate.

Korean brands like UNOVE and AZH are attempting to bridge these gaps by expanding their presence on platforms like Qoo10 Japan. Events and discounts are key strategies employed to attract Japanese consumers.

“Japan's younger generation is responding positively to K-beauty, and platforms like Qoo10 are pivotal in strengthening this bond,” said Kim Jae-don, Marketing Director at eBay Japan. With continued efforts in product adaptation and strategic marketing, K-beauty is expected to expand its reach even further in the Japanese market.

Guidelines for Safe Use of Whitening and Anti-Wrinkle Cosmetics

    The Ministry of Food and Drug Safety in Korea is addressing the surge in exaggerated advertising for whitening and anti-wrinkle functional cosmetics by offering guidelines to ensure consumers make informed and safe choices. These functional cosmetics are specifically approved by the ministry, and consumers are encouraged to check for the term “functional cosmetic” or its logo on the packaging. Verification can also be done on the ministry’s “Nedrug” website.

Functional cosmetics for whitening help reduce melanin pigmentation, preventing freckles and spots, while anti-wrinkle products enhance skin elasticity through collagen production. However, these cosmetics are not pharmaceuticals and do not offer medical-level results. Ads claiming effects like "skin regeneration," "anti-aging at a cellular level," or "improved blood circulation" are considered false or exaggerated. Additionally, products promoting methods such as injecting these cosmetics into the skin violate proper usage guidelines.

Consumers should use these products by applying, massaging, or spraying them on the skin as intended. Cases of side effects like redness, swelling, or itching, although rare, require immediate discontinuation and consultation with a dermatologist.

For added safety, consumers are advised to avoid purchasing unregulated overseas direct-purchase (cross-border e-commerce) products, as they may contain prohibited ingredients. Officially imported products undergo thorough testing and meet domestic safety standards, making them a safer choice.

The ministry also emphasizes selecting products tailored to individual skin types and following the instructions provided on the label. To strengthen public trust, the Ministry of Food and Drug Safety will continue monitoring the market, cracking down on exaggerated advertising, and providing reliable safety information to consumers.