INDUSTRIES

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MARKETSCosmeticsmarketinSouthKoreaCHAPTER

01OverviewAnnualgrowthoftheglobalcosmeticsmarketfrom2004to2022Growthrateoftheglobalcosmeticsmarket2004-202210%8%8%6%5.5%6%4%5.25%4.9%5%4.9%4.6%4.6%4.2%3.8%3.8%3.9%4%3.6%3.4%2.9%2%1%0%-2%-4%-6%-8%-10%-8%20042005200620072008200920102011201220132014201520162017201820192020202120223Description:Thisstatisticshowstheannualgrowthrateoftheglobalcosmeticsmarketfrom2004to2022.In2022,theglobalcosmeticsmarketgrewbyanestimatedsixpercentcomparedtotheprevioussalesyear.

ReadmoreNote(s):Worldwide;*L'Oréalestimatesofworldwidecosmeticsmarketbasedonnetmanufacturerpricesexcludingsoap,toothpaste,razorsandblades.Excludingcurrencyfluctuations.ReadmoreSource(s):L’OréalMarketsizeofcosmeticsindustryinSouthKoreafrom2014to2021(intrillionSouthKoreanwon)CosmeticsindustrymarketsizeSouthKorea2014-202110.1110.039.469.269.048.187.67.64201420152016201720182019202020214Description:In2021,themarketsizeofthecosmeticsindustryinSouthKoreaamountedtoaround7.64trillionSouthKoreanwon.Figuressawamarkeddropfrom2019.AsK-beautyproductsgainedglobalpopularity,theproductionandexportsofKoreancosmeticproductshadsignificantlygrownfrom2014to2021.ReadmoreNote(s):SouthKorea;2014to2021Source(s):MFDS(SouthKorea)ProductionvalueofcosmeticsinSouthKoreafrom2014to2021(intrillionSouthKoreanwon)CosmeticsproductionvalueSouthKorea2014-202116.6516.2615.515.1613.5213.0510.738.97201420152016201720182019202020215Description:In2021,theproductionvalueofcosmeticsinSouthKoreaamountedtoaround16.65trillionSouthKoreanwon.Thatyear,themarketsizeoftheSouthKoreancosmeticsindustrystoodatabout7.6trillionSouthKoreanwon.TheproductionandexportsofKoreancosmeticproductshadsignificantlygrownbeforedecliningin2020.ReadmoreNote(s):SouthKorea;2014to2021Source(s):MFDS(SouthKorea)NumberofmanufacturerbusinessesinthecosmeticsindustryinSouthKoreafrom2013to2022NumberofcosmeticsmanufacturecompaniesSouthKorea2013-20225,0004,5004,0003,5003,0002,5004,5484,4284,0712,9112,3282,0692,0172,0332,0001,5001,0005001,75020141,53520130201520162017201820192020202120226Description:In2022,therewere4,548businessesinSouthKoreamanufacturingcosmetics.Thenumberofcosmeticsmanufacturershassteadilyincreasedoverthelastyearsandsuddenlyjumpedtooverfourthousandin2020.

ReadmoreNote(s):SouthKorea;2013to2022Source(s):CosmorningRetailsalesvalueofcosmeticsinSouthKoreafrom2015to2022(intrillionSouthKoreanwon)CosmeticsretailsalesSouthKorea2015-202237.4734.9934.6732.7829.8425.7524.6122.09201520162017201820192020*20212022**7Description:In2022,theretailsalesvalueofcosmeticsamountedtoaround37.47trillionSouthKoreanwon,anincreasecomparedtothepreviousyear.Thisvalueindicatednotonlyanincreasecomparedtobeforebutwasalsothepeakofcosmeticssalesvaluethusfar.ReadmoreNote(s):SouthKorea;2015to2022;*Duetoannualcorrectionsandre-organizations,valuespriorto2020areofonlylimitedcomparability.**Preliminary.1,000SouthKoreanwonequals0.76U.S.dollarsor0.72eurosasofMarch2023.Figures[...]

ReadmoreSource(s):KOSISCHAPTER

02HealthandBeautystoresNumberofresponsiblesellingbusinessesinthecosmeticsindustryinSouthKoreafrom2013to2022NumberofresponsiblecosmeticsretailersSouthKorea2013-202230,00025,00020,00015,00010,00028,01522,71619,76915,70712,67310,0798,17520166,42220154,85320145,00003,88420132017201820192020202120229Description:In2022,therewere28,015companiesinSouthKoreaclassifiedasresponsiblecosmeticssellers.ThisbusinesstypemadeupforthemajorityofallbusinessesinthecosmeticsindustryinSouthKoreathatyear.

ReadmoreNote(s):SouthKorea;2013to2022Source(s):CosmorningLeadinghealthandbeauty(H&B)retailersinSouthKoreain2022,basedonnumberofstoresLeadingH&BretailersSouthKorea2022,bystorenumbers1,4001,2001,00080060040020001,32812OliveYoung(CJOliveNetworksCo.)LOHB's(LotteShoppingCo.)Brand(Company)10Description:OliveYoungfromCJwasthemostleadinghealthandbeauty(H&B)storebrandinSouthKoreain2022,with1,328storesnationwide.ItwasfollowedbyLOHB'swith12storesrespectively.WhileOliveYounghasexpandeditsstoresnationwideinrecentyears,othercompaniesarereducingthenumberofstorestominimizetheirH&Bbusiness.ReadmoreNote(s):SouthKorea;2022Source(s):USDAForeignAgriculturalService;Varioussources(companyreports,companyhomepages,newsarticles)NumberofOliveYoungstoresinSouthKoreafrom2010to2022NumberofOliveYoungstoresinSouthKorea2010-20221,2981,2591,2651,2461,1981,07480055241737527015291201020112012201320142015201620172018201920202021202211Description:In2022,therewere1,298OliveYoungstoresinSouthKorea.OliveYoungisthehealthandbeauty(H&B)storechainownedbyCJ.DespiteotherH&Bstores'strugglesintheSouthKoreanbeautymarket,thenumberofOliveYoungstoreshassteadilyincreasedduringthelastdecade.ReadmoreNote(s):SouthKorea;2010to2022Source(s):CJCorporation;DARTNumberofLalavlastoresinSouthKoreafrom2018toNovember2022NumberofLalavlastoresSouthKorea2018-2022168140124704502018201920202021June2022November202212Description:Starting2018,thenumberofLalavlastoresinSouthKoreahasslowlydecreasedforafewyearsbeforestartingtoplummet.InNovember2022thelaststorehasbeenclosed.Lalavlawasahealthandbeauty(H&B)storechainownedbyGSretailanditisalsoknownasitsformernameWatsons.ReadmoreNote(s):SouthKorea;2018toNovember2022Source(s):GSRetail;MoneyToday(SouthKorea)NumberofChicorstoresinSouthKoreafrom2016to2022NumberofChicorstoresSouthKorea2016-2022302925242351201620172018201920202021202213Description:In2022,therewere23ChicorstoresinSouthKorea.Thestorenumberhaspeakedin2019at30storesandhasstartedtodeclinesincethen.Chicorisabeautymulti-brandsstorebrandownedbyShinsegae.

ReadmoreNote(s):SouthKorea;2016to2022Source(s):Biznews;ShinsegaeNumberofLOHB'sstoresinSouthKoreafrom2019to2022NumberofLOHB'sstoresSouthKorea2019-2022131101490201920202021202214Description:In2022,therewerenoLOHB'sstoresinSouthKoreaanymore,asignificantchangetothepreviousyear.LOHB'sisahealthandbeauty(H&B)storechainownedbyLotteShopping.In2022,LOHB'swasrebrandedtoLOHB's+andisoperatingtheirstoresas"shop-in-shop"inLotteMart.ReadmoreNote(s):SouthKorea;2019to2022Source(s):LotteShopping;MoneyToday(SouthKorea)CHAPTER

03LeadingindustryplayersNumberofbusinessesinthecosmeticsindustryinSouthKoreain2022,bybusinesstypeNumberofcosmeticscompaniesSouthKorea2022,bybusinesstype30,00028,01525,00020,00015,00010,0005,00004,548217ResponsiblesellersManufacturerCustomizedcosmeticsvendors*16Description:In2022,therewere28,015cosmeticsbusinessesthatwereclassifiedasresponsiblesellersinSouthKorea.Overall,therewerecloseto33thousandcompaniesactiveinthecosmeticsindustrythatyear.

ReadmoreNote(s):SouthKorea;2022;*ThesystemofcustomizedcosmeticsvendorsstartingtakingeffectonMarch14,2020.ReadmoreSource(s):CosmorningLeadingbeautyandcosmeticsconglomeratesinSouthKoreain2022,byrevenue(inbillionSouthKoreanwon)LeadingcosmeticsconglomeratesSouthKorea2022,byrevenueRevenueinbillionSouthKoreanwonLGHousehold&HealthCare*AmorepacificGroup*KolmarKorea*7,185.84,4951,865.71,600.1COSMAX*AekyungIndustrial*KolmarBNH*610.4575.9MiwonCommercial*CosmeccaKoreaCo.*APRCo.Ltd.*438.2399.4397.7HUGEL*281.317Description:In2022,LGHousehold&HealthCare(LGH&H)wasthelargestbeautyandcosmeticsconglomerateinSouthKoreawithitsrevenueofaround7.19trillionSouthKoreanwon.LGH&HisaSouthKoreanconsumergoodscompanyanditsbusinesssectorsincludecosmetics,householdgoods,andbeverages.ThemaincosmeticsbrandsofLGHousehold&HealthCareareWhoo,OHui,SU:M37,andTHEFACESHOP.Inthisstatisticthecosmeticsconglomeratesrefertothecompaniesthathave[...]

ReadmoreNote(s):SouthKorea;2022;*Consolidated.1,000SouthKoreanwonequals0.74U.S.dollarsor0.70eurosasofOctober2023.Figureshavebeenrounded.Originalsourcedividedcosmeticscompaniesinto7categoriesincludinggeneralcosmetics[...]

ReadmoreSource(s):Beautynury;DARTLeadingbusinessimportingcosmeticsintoSouthKoreain2021,bysalesrevenue(inbillionSouthKoreanwon)LeadingcosmeticsimportingbusinessSouthKorea2021bysalesrevenueSalesrevenueinbillionSouthKoreanwon400

60002008001,0001,2001,400ChanelKoreaKoreaP&G*1,223.771,145.07ELCAKorea*NuSkinKorea417.99406.58357.79L'OréalKoreaLVMH215.81205.1174.64124.75KoséKoreaJohnson&JohnsonSalesKoreaShiseidoLushKoreaJohnson&JohnsonKoreaAesopKorea123.42116.8691.4191.25UnileverKorea18Description:AmongtheleadingbusinessesimportingcosmeticsintoSouthKoreaChanelKorearecordedthehighestsalesrevenuewithapproximately1.224trillionSouthKoreanwonin2021.KoreaP&Gwassecondwitharound1.145trillionwon,whichwasaroundthreetimestheamountofELCAKoreaandNuSkinKorea,whichrankedthirdandfourth,respectively.ReadmoreNote(s):SouthKorea;2021;*FiguresforP&GKorea,ELCAKorea,andLushKoreadatefromJuly2021toJune2022.FiguresforallothercompaniesarefromJanuarytoDecember2021.Figureshavebeenrounded.1,000SouthKoreanwonequals[...]

ReadmoreSource(s):CosmeticManiaNews;DART;Varioussources(eachcompany)CHAPTER

04CosmeticstradeTradebalanceofcosmeticsindustryinSouthKoreafrom2012to2022(inmillionU.S.dollars)TradebalanceofcosmeticsindustrySouthKorea2012-20227,544.366,253.076,089.464,943.754,644.733,416.892,744.351,512.972015487.22-43.9-261.322012-389.49201120132014201620172018201920202021202220Description:In2022,thetradebalanceofSouthKorea'scosmeticsindustrydisplayedasurplusofaround6.25trillionSouthKoreanwon.DuetothegrowingpopularityofSouthKoreanbeautyproductsworldwidetheexportsofcosmeticshaveovertakenthevalueofimportedcosmeticsbyfar.ReadmoreNote(s):SouthKorea;2012to2022Source(s):Cosmorning;KoreaCosmeticAssociation;KoreaCustomsServiceValueofcosmeticsimportedintoSouthKoreafrom2014to2021(intrillionSouthKoreanwon)CosmeticsimportvalueSouthKorea2014-20211.491.461.421.381.331.251.231.12014201520162017201820192020202121Description:In2021,thevalueofcosmeticsimportedintoSouthKoreaamountedtoaround1.49trillionSouthKoreanwon(about1.3billionU.S.dollarsaccordingtosource).Thatyear,themarketsizeoftheSouthKoreancosmeticsindustrystoodatapproximately7.6trillionSouthKoreanwon.Inrecentyears,theproductionandexportsofSouthKoreancosmeticshavegrowngreatlythankstotheglobalpopularityofK-beauty.ReadmoreNote(s):SouthKorea;2014to2021Source(s):MFDS(SouthKorea)ValueofcosmeticsimportedintoSouthKoreain2022,bycountryoforigin(inmillionU.S.dollars)CosmeticsimportvalueinSouthKorea2022,byoriginImportvalueinmillionU.S.dollarsFranceUSA462.88273.65JapanUK125.6861.2459.07ThailandAustraliaGermanyItaly51.5445.7344.2936.0333.69ChinaCanada22Description:In2022,SouthKoreaimportedmorethan462millionU.S.dollarsworthofcosmeticsfromFrance.TheUnitedStatesandJapanfollowedwith274millionand126milliondollars,respectively.TheimportvalueofcosmeticsfromFranceslightlyincreasedcomparedtothepreviousyear.ReadmoreNote(s):SouthKorea;2022Source(s):CosmorningValueofcosmeticsexportedfromSouthKoreafrom2014to2021(intrillionSouthKoreanwon)CosmeticsexportvalueSouthKorea2014-202110.518.947.616.895.594.852.931.92014201520162017201820192020202123Description:CosmeticexportsfromSouthKoreahavegreatlyincreasedinrecentyearsandamountedtoaround10.51trillionSouthKoreanwon(about9.2billionU.S.dollarsaccordingtothesource)asof2021.ThankstotheglobalpopularityofK-beauty,boththeproductionandexportsofSouthKoreancosmeticshavegrown.ReadmoreNote(s):SouthKorea;2014to2021Source(s):MFDS(SouthKorea)ValueofskincarecosmeticsexportedfromSouthKoreain2022,bycountryofdestination(inmillionU.S.dollars)SkincarecosmeticsexportvalueSouthKorea2022,bycountryExportsinmillionU.S.dollarsChina1,946.4USAHongKongJapan322.12246.57222.67138.98108.5977.05VietnamRussiaTaiwanThailandMalaysiaSingapore60.1949.7446.1124Description:In2022,ChinawastheleadingdestinationofskincarecosmeticsexportedfromSouthKorea.TheexportvalueofskincarecosmeticsfromSouthKoreatoChinaamountedtoaround1.95billionU.S.dollars.ItwasfollowedbytheU.S.andHongKongwitharound322.1millionU.S.dollarsand246.6U.S.dollarsworthofskincareexportsrespectively.ReadmoreNote(s):SouthKorea;2022;HScode:3304991000Source(s):KoreaInternationalTradeAssociationCHAPTER

05ConsumerbehaviorAveragespendingonmake-uppercapitainSouthKoreafrom2016to2021,withaforecastfor2026(inU.S.dollars)Make-uppercapitaexpenditureSouthKorea2016-202630252023.918.1151059.60201620212026*26Description:In2021,theaveragepercapitaexpenditureonmake-upinSouthKoreareachedaround18.1U.S.dollars,closetodoublethatin2016.Make-upexpenditurepercapitawasexpectedtogrowfurtherinthecountryandcontinueovertakingtheglobalandAsia-Pacificregionalaverage.ReadmoreNote(s):SouthKorea;2016to2021;*ForecastReadmoreSource(s):GlobalData;PremiumBeautyMediaTrendingkeywordsincosmeticsconsumptioninSouthKoreain2023KeywordsconcerningcosmeticconsumptionSouthKorea2023Shareofrespondents0%10%20%30%40%50%60%60.5%70%Eco(environmentallyfriendly)Conscious(valueconsumption)Smart(usagefocused)47.4%21.1%18.4%15.8%13.2%13.2%10.5%Curation(customizedconsumption)GenderneutralMobile(on-the-goconsumption)Trade-down(pricefocused)Trade-up(premium)Placebo(cost-effectiveness)Neutro(newrestoration)Other10.5%10.5%36.8%27Description:AccordingtoasurveyamongproductdesignteamleadsfromcosmeticscompaniesinSouthKorea,themostimportanttrendkeywordsincosmeticsconsumptionin2023was"eco/environmentallyfriendly"witharoughly60.5respondentshare.Accordingtothesource,thiswasthefifthyearinarowthattheterm"environmentallyfriendly"wasnamedasthemostimportantconsumptiontrendkeyword.Insecondplacewas"conscious/valueconsumption"witharound47.4percentof[...]

ReadmoreNote(s):SouthKorea;38respondents;productdesignteamleadsfrom36domesticcosmeticscompaniesSource(s):CosmeticManiaNewsMostusedbasemake-upproductsamongwomeninSouthKoreain2022Basemake-upproductsforwomenSouthKorea2022Shareofrespondents0%10%20%30%40%50%60%70%80%Sunprotectionproducts72.1%Cushion51.8%Make-upbase/tone-up/BB/CCcream36.7%FoundationBlush32.2%27%24.2%23.1%22.7%CompactPowderConcealerHighlighter/shading/bronzerPrimer18.7%12.6%9.8%Make-upfixing28Description:AccordingtoasurveyconductedbyOpensurveyamongSouthKoreanwomenontheiruseofbasemake-upproductsin2022,around72.1percentofrespondentsstatedthattheyusedsunprotectionproductsfortheirmake-upbase,followedbycushionproductswitharound51.8percentofrespondentsansweringthatway.ReadmoreNote(s):SouthKorea;January3to5,2022;1,500femalerespondents;20-49yearsSource(s):OpensurveyMostusedcolorcosmeticproductsamongwomeninSouthKoreain2022ColorcosmeticproductsforwomenSouthKorea2022Shareofrespondents0%10%20%30%40%50%60%70%80%SunprotectionproductsEyebrow72.1%52.5%51.8%CushionEyeshadow47.4%47.4%46.5%45.9%Lipbalm/ColorbalmLipstickLipcolors/LiptintMascara/Eyeliner/EyeprimerMakeupbase/Tone-up/BBorCCcreamFoundation39.4%36.7%32.2%29Description:AccordingtoasurveyconductedbyOpensurveyamongSouthKoreanwomenontheirmostusedcolorcosmeticproductsin2022,around72.1percentofrespondentsstatedthattheyusedsunprotectionproducts.Additionally,morethanhalfoftherespondentsusedeyebrowandcushionproducts.ReadmoreNote(s):SouthKorea;January3to5,2022;1,500femalerespondents;20-49yearsSource(s):OpensurveyPopularmethodsforskincareroutineamongwomeninSouthKoreain2022MostpopularskincareroutineamongwomenSouthKorea2022Shareofrespondents0%10%20%30%40%50%60%70%80%90%100%Usingbasecosmeticsathome