Global K-Beauty Products Market to Grow at a CAGR of 9.2% During 2022 –2030

Introduction

South Korean skincare products are collectively referred to as K-Beauty. The style has gained worldwide popularity, notably in East Asia, Southeast Asia, South Asia, and the Western world, and it highlights the benefits of health, hydration, and brightness. Due to the Korean tradition of employing natural, distinctive, and harsh-free ingredients, which have been passed down for generations, Korean beauty products have gentler formulations. Only natural substances explicitly labeled on the packaging are used in producing these items. K-beauty lays a strong emphasis on skincare while ensuring that its products are trendy and affordable. The cosmetics industry in Korea is continually expanding to accommodate new developments, especially in raw materials. Snail slime, bee venom, starfish extract, pig collagen, and morphing masks are among the strange ingredients utilized to formulate K-beauty products. Due to its high product margin, the K-beauty sector is becoming increasingly lucrative for cosmetic companies, enhancing its profitability.

Market Dynamics

Popularization of Products Inspired by Unique Ingredient Formulas and Digital Marketing Strategies to Drive the K-Beauty Products Market

The formulation of Korean beauty products is their biggest asset. In Korea, women's skincare procedures can range from four to twenty steps, with various products used to treat different skin concerns. These cosmetics are virtually entirely composed of natural ingredients. In addition, it is difficult to find certain chemicals in western beauty products because they are indicative of the eastern culture. Koreans have always known about and employed snail slime as an anti-wrinkle lotion component to battle the outward signs of aging.

The use of pearls in skin-brightening cosmetics and bee propolis in nourishing products are two other uncommon components seen in K-beauty products. Today's consumers are incredibly choosy about the cosmetics they use on their skin, preferring those with natural ingredients. Consequently, the K-beauty sector has benefited from consumer preferences and choices in skin care products. In addition, Korean beauty enterprises leverage their digital and e-commerce skills to suit the constantly rising demand in international markets.

Several Korean skincare brands, like Sokoglam and Peach & Lily, have been introduced to the United States via online shops, thereby increasing the market abroad. In addition, international cosmetic retailers are building sections on their websites that are dedicated to Korean skincare brands. Sephora, a French multinational retailer of personal care and cosmetics, has just established a K-Beauty unit. The West's journalists and social media influencers are also fascinated by the K-beauty boom. The K-beauty companies have been praised for employing this innovative digital strategy to increase their appeal.

Demand from the United States and South Asian Nations to Create Global K-Beauty Products Market Opportunities

Due to the rapid rise of social media in North America and Asia, fashion-conscious individuals have raised awareness of K-beauty goods. Blogs, YouTube, and Instagram, are the most trendy platforms for marketing and exchanging information about skin care methods and products. These platforms have contributed to the diffusion of knowledge about these techniques and products. Additionally, the millennial generation has developed an interest in products produced by firms such as Innisfree and Skin Food that incorporate natural, organic, and sustainably sourced ingredients.

Regional Insights

The Asia Pacific will likely command the market for the k-beauty product while growing at a CAGR of 8.3%. K-beauty goods are manufactured in Asia-Pacific. Customers in this region are more interested in skincare-related products. In addition, there is a growing desire for beauty products created with natural and organic ingredients instead of synthetic ones. AmorePacific, along with LG Household & Health Care, is one of the largest manufacturers of K-beauty products. However, many smaller and smaller enterprises are also on the market, each with a unique positioning. The Asia-Pacific region comprises the most significant portion of all regions due to its massive population, quick economic expansion, and expanding consumer purchasing power.

North America is envisioned to hold USD 3,547 million, growing at a CAGR of 10.5%. North American consumers are embracing a holistic approach to skincare that reflects their enjoyment of beauty. Their attitude to beauty is heavily influenced by Korean skincare regimens, hence developing a tie between the two markets. Beauty products with a light consistency and distinct, natural ingredients are increasingly popular, particularly among women. The market for K-beauty products is growing due to innovative and appealing packaging, which is vital.

Consumers are attracted to products with transparent labels that describe the contents. In addition, the sponsorship of Korean beauty products by celebrities on social media platforms such as Instagram and Facebook has significantly raised consumer awareness. The confluence of these factors has generated the immense market potential for K-beauty products in North America.

Key Highlights

• The global K-beauty products market had a revenue holding of USD 8,301 million in 2021. It is expected to reach USD 18,329 million by 2030, growing at a CAGR of 9.2% during the forecast period (2022-2030).
• Based on the product type, the sheet mask section is predicted to advance at a CAGR of 8.87% and hold the largest share.
• Based on the end-user, the female section is predicted to advance at a CAGR of 8.8% and hold the largest share.
• Based on the distribution channel, the specialty/ mono-brand store section will likely have the highest shareholding, growing at a CAGR of 8.27%.
• Based on regional analysis, the Asia Pacific will likely command the market for the k-beauty product while growing at a CAGR of 8.3%.

Competitive Players

1. ABLE C and C CO. Ltd.
2. Adwin Korea Corp
3. Annie s Way International Co., Ltd.
4. The Beauty Factory, Ltd.
5. Bluehug, Inc.
6. BNH Cosmetics
7. Ceragem Health and Beauty Co, Ltd.
8. CK Beauty Enterprise Inc.
9. LG Household and Health Care
10. Amorepacific Corporation.

Recent Developments

• June 2024 - L'Oréal's revolutionary Big Bang Beauty Tech Innovation Program (Big Bang) officially went live across all of its North Asia markets, bringing a new era of beauty innovation to the region and implementing the "Beauty Triangle" strategy of L'Oréal North Asia Zone. By utilizing the distinctive and potent North Asian ecosystem and the transversal synergy of China-Beauty, Korea-Beauty, and Japan-Beauty, the strategy aims to optimize synergies and speed collaboration.
• May 2024 - Sara Tendulkar was recently appointed as the new brand ambassador for the Korean beauty brand Laneige. The company has also introduced its newest mask, the "Bouncy and Firm Sleeping Mask," in addition to the above. The K-beauty company Laneige has a new face in the social media sensation Sara Tendulkar. Known for her charisma, genuineness, and social media presence, she is currently a brand ambassador for Laneige.

Segmentation

1. By Product Type
   1. Skin Care
      1. Cleanser
      2. Moisturizer
      3. Serum
      4. Sunscreen
      5. Makeup
      6. Others
   2. Hair Care
      1. Shampoo
      2. Conditioner
      3. Serums
      4. Others
   3. Bodycare
      1. Body lotions
      2. Body wash
      3. Exfoliants
2. By End-User
   1. Male
   2. Female

1. By Distribution Channel
   1. Online Retail
   2. Supermarket/Hypermarkets
   3. Specialty/Monobrand Stores
   4. Pharmacies