3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Growing preference for natural and organic products, growing demand for anti-aging products, and increasing popularity of men’s grooming products are some of the key factors that are expected to drive the market. The new trends set by Korean cosmetic industry are now started to be followed by major parts of the world. For Amorepacific, consolidated revenue for the first nine months of the year fell 23% to 3.7 trillion won ($3.4 billion) from the same period in 2019, according to a company filing. Beauty retail sales in the U.S., the No. Three years ago, Suh Kyung-bae was the second-richest person in South Korea. Enjoy Reading! “Spending on cosmetics was already down before Covid,” said Hye-mi Kim, an analyst at Cape Investment & Securities Co. in Seoul. Estee Lauder Cos. made Have & Be Co., widely known for its Dr. Jart+ line, its first acquisition of an Asian beauty brand in November 2019. Since then, the K-Beauty category has grown exponentially from $59 million in 2012 to a whopping $511 million in 2018. 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Meanwhile, China’s customers have more access to global brands and are increasingly interested in products made locally. Neither Have & Be nor GP Club have released financial information for 2020; GP Club’s plan for an initial public offering in 2019 hasn’t been rescheduled. Calcium alginate microbeads … As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Copyrights © 2021 Business Standard Private Ltd. All rights reserved. But the pandemic has taken a double hit on K-beauty. Much of the growth of K-Beauty comes from the Korean wave (Hallyu). For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Beauty retail sales in the U.S., the No. The fascination with Korean cosmetics is due to how innovative they are, says Marie Claire's digital beauty editor Katie Thomas. Meanwhile, China’s customers have more access to global brands and are increasingly interested in products made locally. Seo’s wealth has almost tripled this year to $14.6 billion, making him the country’s new second-richest man. South Korea Leads World in Innovation as U.S. Exits Top Ten, Ant Reaches Agreement With China Regulators on Overhaul, Amazon’s Bezos to Cede Chief Executive Officer Role to Jassy, Futures Debut to Test Ether’s Bitcoin-Beating Rise to Record, GameStop Short Interest Plunges in Sign Traders Are Covering. Beauty retail sales in the U.S., the No. For Korea, … Your support through more subscriptions can help us practise the journalism to which we are committed. As the world’s beauty and personal care industry descends upon London today for the 27th edition of in-cosmetics Global, the world’s leading exhibition for personal care ingredients, new research from Mintel shines a spotlight on South Korea’s beauty market, the beauty trends impacting the global beauty industry and the latest innovations in textures, ingredients and product experience. The pandemic has accelerated the shift to online in the beauty industry. Korean beauty standard is becoming a distinct characteristic of Korean culture. Before it's here, it's on the Bloomberg Terminal. For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Powered by Korean Beauty innovations, we help you achieve your Glass Skin goals. Today he’s barely Top 10, a stark reversal in a K-beauty boom known for minting billionaires, not breaking them. 3 market for Korean exports, will be down more than 7 per cent in 2020, according to market research firm Mintel. There are thousands of Korean beauty brands on the market, far more than any other country. Digital Editor. Although the Korean beauty industry has diversified over the past decade, with a wider range of colours, new techniques such as bronzing, and … The South Korea cosmetics industry is considered as global center of innovations in cosmetics. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. Unilever Plc, L’Oreal SA and other multinational companies also got stakes in Korean cosmetics firms, creating massive windfalls for their founders. Three years ago, Suh Kyung-bae was the second-richest person in South Korea. In the five years that followed, the country became the world’s fourth-largest exporter of beauty products, and the deal volume ballooned to $5 billion, not including transactions for undisclosed sums. Have a confidential tip for our reporters? Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Amorepacific’s revenue for the segment has seen substantial growth, pushing it to prioritize that part of the business. Korean beauty products are buzzed about by experts in the beauty world for innovation, high-efficacy, and the use of natural ingredients. 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. “Spending on cosmetics was already down before Covid,” said Hye-mi Kim, an analyst at Cape Investment & Securities Co. in Seoul. Beauty retail sales in the US, the No. Social distancing and remote work have lessened demand for makeup and led to store closures. You can now find Korean-inspired sections in … Korea is one of the few countries with "functional cosmetics." Beauty retail sales in the U.S., the No. Only must-have items like skincare products or those for facial problems are doing okay.”. Goldman Sachs Group Inc. bought a minority stake in GP Club Co., best known for face masks, making founder Kim Jung-woong one of the country’s richest people. The parent of brands like Innisfree, Laniege and Sulwhasoo, Amorepacific was struggling even before Covid-19, and the pandemic has ushered in a slew of lifestyle changes that have made cosmetics less central to women’s daily routines.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); That’s brought a halt to the wealth created by the rapid rise in popularity of Korean beauty products and the deal-making frenzy that followed. The company declined to comment on its plans or on Suh’s personal fortune. In the domestic market, the company sees the share of online revenue growing to 30% from 20%. These beauty products emphasize particularly on skin aesthetics such as … Kindly visit the Manage my subscription page to discover the benefits of this programme. At the same time, the pandemic has accelerated the shift to online in the beauty industry. Korea is one of the top 10 beauty markets in the world, and it is constantly growing. Suh’s $3.6 billion fortune -- down from roughly $8 billion in 2017 -- is largely comprised of shares in his family’s cosmetics conglomerate, Amorepacific Group, which have fallen more than 40% from a mid-January high. SEOUL, South Korea — Walking down the streets of Seoul, it’s impossible not to see the vast influence of K-beauty, shorthand for South Korea’s local beauty industry. Neither Have & Be nor GP Club have released financial information for 2020; GP Club’s plan for an initial public offering in 2019 hasn’t been rescheduled. Take a tour in our online store where you will find the best brands of Korean cosmetics at a small price. Behind this, there lies a great interest in the external beauty of Koreans. South Korea | beauty products | Beauty & personal care, Yoojung Lee | Bloomberg  South Korea's beauty industry is … In the domestic market, the company sees the share of online revenue growing to 30% from 20%. 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. At the same time, the pandemic has accelerated the shift to online in the beauty industry. Such as cushion foundation & BB creams has been adopted across the world. L&P Cosmetics (MediHeal) MediHeal found instant popularity due to its partnership with the … Was there a plan amongst the first wave of Korean immigrants to hone in on the black hair care industry and dominate the beauty supply store market? For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Calcium alginate ‘novel’ eco-friendly microbead alternative: Study. Perhaps one of the biggest drivers in South Korea's beauty industry is skincare. We, however, have a request. Estee Lauder Cos. made Have & Be Co., widely known for its Dr. Jart+ line, its first acquisition of an Asian beauty brand in November 2019. Korean beauty is also known for customized and often extensive product layering regimens to deliver a multitude of benefits gently over time. K-beauty products refer to the skincare and makeup products originated from South Korea. But the pandemic has taken a double hit on K-beauty. Social distancing and remote work have lessened demand for makeup and led to store closures. Korean Beauty (K-Beauty) started the “skincare wave” and since then has taken over the global skincare industry. I know, I know – it’s everywhere, and people won’t stop talking about it. Cosmetics giant L’Oreal, whose sales dropped 12% in the first half of 2020, launched 300 digital services this year, including live beauty tutorials. Seo’s wealth has almost tripled this year to $14.6 billion, making him the country’s new second-richest man. For the first time in its history, the group announced last month a plan to offer voluntary retirement targeting employees who have worked for more than 15 years. Suh’s $3.6 billion fortune -- down from roughly $8 billion in 2017 -- is largely comprised of shares in his family’s cosmetics conglomerate, Amorepacific Group, which have fallen more than 40% from a mid-January high. That deal, worth $1.1 billion, turned founder ChinWook Lee into a billionaire. Beauty retail sales in the U.S., the No. That’s brought a halt to the wealth created by the rapid rise in popularity of Korean beauty products and the deal-making frenzy that followed. In the past five years alone, exports have grown from $1 billion in 2012 to $2.64 billion in 2017, a record high, according to the Korea Customs Service. For Korea, coronavirus travel restrictions have also cut off the flow of big-spending Chinese tourists and individual merchants who buy tax-free goods in bulk and sell them back home. Beauty retail sales in the U.S., the No. Hallyu is the term used to describe the export of Korean content such as movies, music, cosmetics, and fashion to the world. Goldman Sachs Group Inc. bought a minority stake in GP Club Co., best known for face masks, making founder Kim Jung-woong one of the country’s richest people. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. But, at this point, the domestic market is overcrowded. Amorepacific’s Suh loses spot on ranking of 500 richest people, Korean beauty wave had attracted foreign investors’ money. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Before you groan and exit out of this post, I want to let you know that K-Beauty doesn’t have to be difficult, expensive, or time-consuming! Meanwhile, South Korea has new billionaires rising, like Seo Jung-jin, founder of pharmaceutical firm Celltrion Inc., which is developing a Covid-19 antibody treatment. For Amorepacific, consolidated revenue for the first nine months of the year fell 23% to 3.7 trillion won ($3.4 billion) from the same period in 2019, according to a company filing. It first arrived stateside in 2011, taking the beauty industry by storm and since then, Korea's skincare secrets have been at the forefront of the skincare industry… Today he’s barely Top 10, a stark reversal in a K-beauty boom known for minting billionaires, not breaking them. In recent years, South Korea becomes the only eastern Asian country … For the first time in its history, the group announced last month a plan to offer voluntary retirement targeting employees who have worked for more than 15 years. Amorepacific plans to reduce the number of Innisfree stores in China but anticipates that overall, digital sales will make up half its business there next year, according to Yuanta Securities Korea. Only must-have items like skincare products or those for facial problems are doing okay.”. The kids’ beauty market is expanding as makeup is promoted as a “new play culture” for children, said Lee Hwa-jun, an expert on South Korea’s beauty industry at Mintel. “Covid made it even less necessary. Beauty retail sales in the U.S., the No. South Korea beauty and personal care products market is projected to grow at a CAGR of 5.22% during the forecast period. (CNN) There's face … Today he is barely Top 10, a stark reversal in a K-beauty boom known for minting billionaires, not breaking them.Suh's US$3.6 billion fortune — down from roughly US$8 billion in 2017 — is largely comprised of shares in his family's cosmetics conglomerate, Amorepacific Group, which … So, let’s talk about a hot topic that has made a big splash in the industry: Korean skincare and beauty (K-Beauty). "Skincare routines using multiple products for a 'comprehensive facial treatment at home' became very popular in South Korea as early as the 1960s with the rise of direct selling," Oh explains. According to a survey on the global popularity of South Korean beauty products in 2019, around 29.4 percent of respondents in the U.S. stated that K-beauty is very popular in their country. Cosmetics giant L’Oreal, whose sales dropped 12% in the first half of 2020, launched 300 digital services this year, including live beauty tutorials. We believe in free, fair and credible journalism. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. “Now it’s naive to think that cosmetic products with made-in-Korea tags would simply win over Chinese customers,” said Lina Oh, a Seoul-based analyst at Ebest Investment & Securities Co. Korean beauty technology is estimated to be 12 to 14 years ahead of the U.S. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. “Now it’s naive to think that cosmetic products with made-in-Korea tags would simply win over Chinese customers,” said Lina Oh, a Seoul-based analyst at Ebest Investment & Securities Co. Unilever Plc, L’Oreal SA and other multinational companies also got stakes in Korean cosmetics firms, creating massive windfalls for their founders. From 2010 to 2014, foreign companies spent at least $215 million to acquire cosmetics firms there, according to a September report by Samjong KPMG. From 2010 to 2014, foreign companies spent at least $215 million to acquire cosmetics firms there, according to a September report by Samjong KPMG. 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. The beauty industry was built up initially because of demand from Korean women, who follow one of the most extensive skin-care regimens in the world, piling on between 10 and 18 products a day. Meanwhile, South Korea has new billionaires rising, like Seo Jung-jin, founder of pharmaceutical firm Celltrion Inc., which is developing a Covid-19 antibody treatment. The Korean beauty market is among the top 10 global beauty markets. “Covid made it even less necessary. That deal, worth $1.1 billion, turned founder ChinWook Lee into a billionaire. Beauty retail sales in the US, the No 3 market for Korean exports, will be down more than 7 per cent in 2020, according to market research firm Mintel. SINGAPORE (Dec 28): Three years ago, Suh Kyung-bae was the second-richest person in South Korea. 3 market for Korean exports, will be down more than 7% in 2020, according to market research firm Mintel. By 2020, the Korean beauty industry is expected to hit $13.1 billion, according to Euromonitor. To conclude, it is expected that the Korean beauty industry will reach 3 billion dollars in 2020, so this is not a passing phenomenon but a change of modern times. 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