The skincare sector in South Korea is forecast to grow from ₩8.9 trillion (US$7.6bn) in 2019 to ₩12.5 trillion (US$10.7bn) by 2024, recording a compound annual growth rate (CAGR) of 7.0%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘South Korea Skincare – Market Assessment and Forecasts to 2024’ reveals that the facial care category is forecast to register the highest value growth at CAGR of 7.08% during 2019-2024, and is closely followed by body care category. Furthermore, the facial care category is forecast to register the fastest volume growth at a CAGR of 4.2% during 2019–2024 followed by body care category with a CAGR of 4.1% during the forecast period.

Anchal Bisht, Consumer Analyst at GlobalData, says: “Continued innovation at the ingredients level will continue to reap benefits with introduction of new products and growth in uptake in an otherwise well-developed sector. Increasing adoption of green ingredients for use in skincare products owing to their non-toxic nature will drive the growth of the skincare sector in the country. Busier consumers are also betting on products, which emphasize on multiple benefits from multi-step routines recommended for K-beauty products, will also contribute to growth.”

Direct sellers is the leading distribution channel in the South Korean skincare sector with a value share of 32.4% in 2019, followed by ‘health & beauty stores’ and ‘department stores’ in the same year.

LG Corp, Amorepacific Corporation and L’Oréal S.A. are the top companies in the South Korean skincare sector. Sulwhasoo, owned by Amorepacific Corporation, is the leading brand in the South Korean skincare sector in value terms in 2019. Private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector.

Ms Bisht concludes: “South Korean consumers are shifting their preference towards all- -in-one skincare products which are more convenient to use, encouraging manufacturers to offer products, which help save consumer time and efforts. Products with natural ingredients and products exclusively targeting men are areas of sizable potential growth in the years to follow.”