K-Beauty is to the cosmetics industry what K-Pop is to the music industry. A revised version of what huge multinational labels had been delivering up to that point, suited to local tastes, revitalized, and rich in varied influences, notably Japanese. And, because to this unique and inventive offer, the Land of the Morning Calm has lately surpassed France and the United States as the world’s third-largest cosmetics exporter.
South Korea is currently one of the world’s major exporters of cosmetics, with a double-digit increase in cosmetic exports in 2020 compared to the previous year (+15 percent, according to data from the Korean Customs Service and the Korean Cosmetics Association. According to the same sources, Korean exports totaled US$6.12 billion in 2020, while imports decreased by 0.7 percent to US$1.07 billion.
The Ministry of Food and Drug Safety anticipates a rise in exported beauty goods of +16.1 percent in 2020 compared to 2019, or US$7.57 billion in value, using a new method of computation.
The world’s third-largest exporter
These data have allowed the Korean government to claim third position among the world’s cosmetics exporting countries in 2020, after France and the United States, two countries whose exports have been harmed by the Covid-19 epidemic over the same period.
Despite the country’s efforts to diversify its markets, Korean exports are still mostly destined for the Chinese market (50.3 percent of total exports).
The country, however, has not been fully exempted from the crisis, as the Ministry of Food and Drug Safety reports that cosmetics output fell 6.8% in 2020, to over US$13.4 billion.
The United States is the second-largest importer of South Korean cosmetics behind China. “France is the top importer of Korean cosmetics in Europe, with 35 percent, followed by the United Kingdom (16 percent), and Germany (9 percent,” says Zoé Maillet, a marketing specialist at KOTRA (Korea Trade-Investment Promotion Agency).
A fiercely competitive and forward-thinking market
The mania for K-Beauty arose in the aftermath of what the Chinese media dubbed the Hallyu, or “Korean wave,” in the 1990s: the rising popularity of the South Korean entertainment industry (mainly TV series and Korean Pop, but also movies and literature).
Korean beauty originally rose to prominence as a result of the global success of some of its most iconic products, such as BB creams and cushion compacts, which were quickly adapted by European and American firms keen to appeal to Asian consumers.
Above all, Korean businesses benefit from a particularly dynamic local market, where severe competition necessitates an ability to innovate and a speed to market that Western firms are not accustomed to. Large multinationals like AmorePacific or LG rub shoulders with ultra-dynamic indie brands like Look at Me, When, Let Me Skin in this country, where skincare is a serious issue for both women and men. Brands that have developed a reputation for naturalness, in response to customer demand, owing to botanical components including green tea, ginseng, and Centella Asiatica.
On the industrial side, a vast network of suppliers and subcontractors first made a name for itself serving Japanese brands, before going on to become a global benchmark for its superior manufacturing methods and production speed: important assets in the cosmetics industry, where products and trends change frequently.
What are the forecasted trends for the coming years?
Because of its consistency, the Korean beauty regimen is particularly appealing to Asian customers. In Europe and North America, on the other hand, it is frequently seen as overly convoluted. “It’s all about the layering process, which begins with a double face washing with oil, followed by foam, an exfoliator, an essence, a serum, a mask, and an eye cream,” she says.
Will customers’ desire to cut their consumption and streamline their routines affect this highly thorough beauty routine? Nothing can be said to be certain! The hunt for a simple routine and the naked beauty trend are less important to Asian customers. Face cleansers, a major asset of Korean companies, should also benefit from the hunt for more natural goods and healthy skin.
“Demand for cleansing products, such as face oils, cleansing balms, or cleansing foam, will skyrocket in the coming years,” says Zoé Maillet.
The recent success of Cyca, a plant-based ingredient used in many Korean skincare products, including Dr Jart+’s, highlights the capacity of Korean firms to continually innovate and earn worldwide reputation, likely for many years to come!
