21 Sep 2021
Posted in Consumer
Novel, innovative K-beauty products to lead South Korean make-up market growth, says GlobalData
The South Korean make-up market is projected to grow at a compound annual growth rate (CAGR) of 9.2% from KRW2.1 trillion (US$1.8bn) in 2020 to KRW3.3 trillion (US$2.9bn) in 2025, driven by novel and innovative ‘K-beauty’ products, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Make-up – Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by the growth of the nail make-up category, which is forecast to register the fastest value CAGR of 9.9% during 2020–2025. This is followed by the lip make-up category, which is expected to record a CAGR of 9.4% during the same period.
Sukanyashri Kabali, Consumer Analyst at GlobalData, says: “K-beauty has been constantly evolving. South Korean consumers are highly demanding and willing to experiment, thus forcing manufacturers to focus on offering novel and innovative products with unique skin-friendly ingredients. Furthermore, the COVID-19 outbreak raised health concerns among consumers increasing the demand for natural ingredients such as fruit extracts, which contain vitamin C and other essential nutrients.”
‘E-retailers’ was the leading distribution channel in the South Korean make-up market in 2020, followed by health & beauty stores and department stores.
Amorepacific Corporation, LG Corp and The Estee Lauder Companies Inc. were the top three companies in the South Korean make-up market by value in 2020 while The Face Shop and Sulwhasoo were the leading brands.
Ms. Kabali concludes: “Consumers have increasingly busier lifestyles. As a result, the traditional long make-up routines are being replaced by multi-functional products that reduce time and efforts of consumers considerably. Moreover, rising environmental consciousness among consumers will give way to minimalistic approach to reduce the excessive packaging waste.”