05 Nov 2020
Posted in Consumer
South Korea’s cosmetics & toiletries industry to reach US$21.2bn by 2024, says GlobalData
The cosmetics & toiletries industry of South Korea is expected to grow from ₩16.5 trillion (US$15.7bn) in 2019 to ₩22.3 trillion (US$21.2bn) by 2024, recording a compound annual growth rate (CAGR) of 6.2%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Cosmetics & Toiletries– Market Assessment and Forecasts to 2024’ reveals that the skincare was the largest sector with value sales of ₩8.9 trillion (US$7.6bn) in 2019. However, the feminine hygiene sector is forecast to register the fastest value growth at a CAGR of 8.8%, during 2019–2024. It is followed by skincare and make-up with CAGRs of 7.0% and 6.9%, respectively.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Growing popularity of e-commerce platforms is significantly impacting consumer demand for cosmetics in the country. In addition, the ongoing health & wellness trend among the consumers raised concerns over the use of chemicals in products, encouraging consumers to choose organic and natural cosmetics in turn driving new product innovations in the industry.”
Skincare was also the largest sector in volume terms, registering volume sales of 459 million units in 2019. However, the feminine hygiene sector is forecast to register the fastest volume growth at a CAGR of 7.0% during 2019–2024, followed by make-up and skincare with CAGR of 5.8% and 4.1%, respectively.
‘Health & beauty’ was the largest distribution channel in the South Korean cosmetics & toiletries industry and held a share of 23.0% in 2019. It is trailed at a distance by Direct sellers and Hypermarkets & supermarkets with shares of 22.8% and 20.8%, respectively in the same year.
LG Corp emerged as the largest player in the South Korean cosmetics & toiletries industry in 2019. It is followed by Amorepacific Corporation, and Procter & Gamble in the same year.
Ms Anchal concludes: “Sector growth is expected to gain from growing popularity of men’s grooming products. Men are also opting for sophisticated haircare products which help enhance their appearance signalling significant opportunities for sector expansion in the country.”