10 Jul 2020
Posted in Consumer
South Korea’s haircare sector to reach US$1,413.2m in 2024, says GlobalData
The haircare sector in South Korea is forecast to grow from ₩1,396.9bn (US$1,194.3m) in 2019 to ₩1,656.3bn (US$1,413.2m) in 2024, recording a compound annual growth rate (CAGR) of 3.5%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Haircare – Market Assessment and Forecasts to 2024’, reveals that the shampoo category led the sector in value terms in 2019, followed by conditioner and hair colorants categories. Salon haircare is forecast to register the fastest value growth at a CAGR of 3.9% during 2019–2024. The salon haircare and shampoo categories are expected to gain maximum market share in value terms during the same period.
Susmitha Bynagari, Consumer Analyst at GlobalData, says: “Perennial desire among Koreans to maintain healthy hair continues to buoy demand for haircare products, although growing penchant for addressing individual concerns is pushing demand for conditioners, salon haircare products and premium products.”
The per capita consumption (PCC) of haircare in South Korea is lower when compared to the regional and global averages in 2019. It stood at 0.7 units in 2019 and is expected to decrease in the next five years to reach 0.8 units by 2024.
Hypermarkets & supermarkets is the leading distribution channel in the South Korean haircare sector in value terms, followed by convenience stores and e-retailers in 2019.
Amorepacific Corporation, LG Corp, Aekyung Co., Ltd., Dongsung and L’Oreal SA, are the leading companies in the South Korean haircare sector; while Elastine, Mise-En-Scène, are the top brands in value terms in 2019.
Conditioner is the most consolidated category, with the top three companies accounting for a share of 91.0% in 2019.
Ms Bynagari concludes: “With the growing health awareness among the South Korean consumers, demand for haircare products made from organic/natural ingredients, particularly in shampoo and hair colorants categories, is expected to grow further. Also, the anti-ageing hair care products will gain in demand from older consumers.”