- BEAUTY
Korean Cosmetics Capturing Global Attention
Beauty Trends to Watch in Different Regions: What About Atomy Products?
In the 2010s, Korean cosmetics saw explosive growth in China, giving rise to the term K-beauty. However, the industry faced significant challenges in 2019 due to Chinese government restrictions and the COVID-19 pandemic. To stay afloat, Korean cosmetics companies expanded their markets to the U.S. and Southeast Asia, bolstering their competitiveness. As a result, Korean cosmetics exports bounced back last year, ranking fourth globally. Clearly, K-cosmetics have secured their place in the global market.
According to the Korea International Trade Association in April, while overall exports declined in 2023, cosmetics exports were the fourth largest in the world, up 6.2% from the previous year to $8.59 billion. Cosmetics (8.2%) accounted for the second-largest share of consumer goods exports in 2023 after automobiles (59%), which remain the number one export item. According to the latest trade statistics from the Korea Customs Service, the K-beauty craze is expected to intensify. In the first half of this year, cosmetics exports totaled $4.82 billion (about 6.66 trillion won). This marks an 18.1% increase year-on-year, which is more than six times the value of the first half of 2014 ($790 million), a decade ago. At this rate, annual cosmetics exports could surpass $10 billion this year for the first time.
| Ranking | Region |
|---|---|
| 1 | France |
| 2 | United States |
| 3 | Germany |
| 4 | Republic of Korea |
| 5 | Italy |
*Source: [Domestic Cosmetic 2023 Status of Production, Import, and Export], The Ministry of Food and Drug Safety
The amount of cosmetics exports by region indicates that the trend of export diversification has become clear, with exports increasing to Asia, North America, and Europe, in addition to China, which was previously the main destination, expanding to 165 countries. Notably, the share of exports to China has decreased, while the shares to the United States and Japan have increased. In fact, when looking at cosmetics exports in the first half of this year by region, China accounted for $1.21 billion, followed by the U.S. at $870 million and Japan at $480 million. While China still holds the largest share, the value of exports to China decreased by 14.1% year-on-year, whereas exports to the U.S. increased by 61.1% and to Japan by 21.5%. In the Japanese market, Korea outpaced France, home to many global brands such as L'Oréal, to retain the top spot in 2022 and 2023. In the U.S. market, Korea overtook China to take the fifth spot.
Locals in Mexico and Thailand interested in and trying Atomy beauty products
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Atomy Derma Real Cica59,900 KRW 30,000 PVCentella and cica: Popular ingredients in Korea, the US, and Japan.
Rated excellent in sensitivity testing for skin.
Manages tired and irritated skin comfortably and healthily with soothing and barrier care. -
Atomy Acne Clear Expert System66,800 KRW 33,500 PVCosmetics suitable for acne-prone skin.
Contains the patented AC-SOLUTION 10 botanical ingredients.
Moisturizes sensitive skin by addressing all three issues of irritation, sensitivity, and dryness. -
Atomy Fresh Sun Lotion28,800 KRW 11,000 PVSafe, non-irritating mineral sunscreen.
Skin irritation level of 0.00% confirmed by sensitization test.
Reef-friendly, eco-friendly products considering both healthy skin and a beautiful environment.
| United States | Japan | |
|---|---|---|
| Keyword | #Ingredients #RawMaterials #Sustainability #Skincare #Suncare #CleanBeauty | #Makeup #BangForYourBuck #WaterySkin #TroubleImprovement #FunctionalIngredients |
| A leading market | The skincare trend at the forefront, driven by trust in the quality of Korean ingredients and raw materials | Primary consumption of Korean makeup products by teens and those in their 20s Increased skincare product consumption as consumers age |
| Product | Expected leading trend of suncare in the coming years Anticipated popularity of clean beauty and derma (functional cosmetics) products | Growing popularity of Korean cica, skin-calming, and problem-solving product lines. High interest in vegan and hypoallergenic products |
| Ingredients | Dupes, or alternatives to high-end brands, offering premium ingredients, and multi-functional ingredients | Functional ingredients such as retinol, niacinamide, collagen, and vitamins |
| Consumer psychology | Preference for "bang for your buck" products over luxury cosmetics due to high inflation and interest rates | Expected popularity of bang-for-your-buck Korean products due to the fall of the Japanese Yen |
| Others | High interest in sustainability, including bulk and refillable products, clean beauty, cruelty-free, biodegradable, and plastic-free options | More focus on clean, cover-up makeup that hides skin concerns. Growing consumer desire for a clean, moisturized skin look |
| United States | |
|---|---|
| Keyword | #Ingredients #RawMaterials #Sustainability #Skincare #Suncare #CleanBeauty |
| A leading market | The skincare trend at the forefront, driven by trust in the quality of Korean ingredients and raw materials |
| Product | Expected leading trend of suncare in the coming years Anticipated popularity of clean beauty and derma (functional cosmetics) products |
| Ingredients | Dupes, or alternatives to high-end brands, offering premium ingredients, and multi-functional ingredients |
| Consumer psychology | Preference for "bang for your buck" products over luxury cosmetics due to high inflation and interest rates |
| Others | High interest in sustainability, including bulk and refillable products, clean beauty, cruelty-free, biodegradable, and plastic-free options |
| Japan | |
|---|---|
| Keyword | #Makeup #BangForYourBuck #WaterySkin #TroubleImprovement #FunctionalIngredients |
| A leading market | Primary consumption of Korean makeup products by teens and those in their 20s Increased skincare product consumption as consumers age |
| Product | Growing popularity of Korean cica, skin-calming, and problem-solving product lines. High interest in vegan and hypoallergenic products |
| Ingredients | Functional ingredients such as retinol, niacinamide, collagen, and vitamins |
| Consumer psychology | Expected popularity of bang-for-your-buck Korean products due to the fall of the Japanese Yen |
| Others | More focus on clean, cover-up makeup that hides skin concerns. Growing consumer desire for a clean, moisturized skin look |
| Promising Markets | Market Characteristics | Go-to-Market Strategy |
|---|---|---|
| India |
- Potential for high consumption growth due to the world's largest population
- Rise of K-content as mainstream culture post-COVID-19 pandemic - Popularity of Korean basic cosmetics with unique ingredients, especially on online shopping malls |
- Emphasizing natural ingredients in cosmetics
- Need for online marketing focused on basic cosmetics |
| Türkiye |
- South Korea's ranking as the 3rd largest in the local cosmetics import market due to the recent Korean Wave
- Increased number of members in Korean Wave clubs, placing South Korea 8th globally - Expected growth of the cosmetics retail market at a CAGR of 4.5% by 2027 |
- Expansion of halal and vegan cosmetics
- Increasing accessibility by entering offline channels along with online marketing |
| Mexico |
- Significant increase in the number of members in Korean Wave clubs, making it the second-largest in the world
- 10th largest population globally - Anticipated high growth based on high purchasing power and a large consumer base |
- Marketing activities focused on derma cosmetics, suncare, and hair care
- Targeting men with high demand for all-in-one products |
| Thailand |
- Ranking of 3rd in the world for Korean Wave club members
- A bridgehead market for entry into Indochina - Popularity for low to mid-priced, small-volume cosmetics sold at convenience stores |
- Providing an offline-based customer experience for whitening functional cosmetics and BB creams
- Delivering the value of absolute product and absolute price |
<This article cites 'No. 15 of 2024 Trade Focus' published by the Korea International Trade Association>
| Promising Markets | India |
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| Promising Markets | Mexico |
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| Promising Markets | Thailand |
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<This article cites 'No. 15 of 2024 Trade Focus' published by the Korea International Trade Association>
