K-Beauty Products Market

Market Overview

The global K-beauty products market size had a revenue holding of USD 8.30 billion in 2021. It is expected to reach USD 18.32 billion by 2030, growing at a CAGR of 9.2% during the forecast period (2022-2030).

Skincare items originating in South Korea are collectively referred to as K-Beauty. The trend has gained worldwide popularity, particularly in East Asia, Southeast Asia, South Asia, and the Western world, and it emphasizes health, hydration, and brightening effects. Thanks to the Korean history of employing natural, distinctive, and harsh-free substances passed down over many years, Korean beauty products have considerably milder compositions. Natural components clearly identified on the items' packaging are used in manufacturing. K-beauty places a lot of emphasis on skincare while ensuring its products are hip and reasonably priced. The Korean cosmetics industry is constantly growing to embrace new developments, particularly in raw materials. Some unusual components used to make K-beauty products include snail slime, bee venom, starfish extract, pig collagen, and morphing masks.

Due to its high product margin, the K-beauty market is growing more and more profitable for cosmetic enterprises, which increases its profitability. The demand for K-beauty products has experienced a significant uptick in female cosmetics use due to more women participating in social and economic activities. As income levels rise, there is a more substantial desire for expensive, luxury cosmetics. Additionally, K-beauty goods cater to men's and women's needs for cosmetics. However, the growing popularity of veganism could have a detrimental effect on developing K-beauty goods. The expansion of the K-beauty products market is constrained by the rising number of environmentally concerned consumers, particularly concerning sustainability, environmental influence, and animal welfare.

Market Dynamics

Market Drivers

Popularization of Products Inspired by Unique Ingredient Formulas and Digital Marketing Strategies

Korean beauty products' composition is their greatest asset. Women's skincare routines in Korea can range from four to twenty steps, with various products used for multiple skin issues. These cosmetics are made almost exclusively from natural materials. Additionally, some substances are difficult to locate in western beauty products because they are typical of eastern culture. Koreans have always known and utilized snail slime as an ingredient in anti-wrinkle lotions to combat the visible indications of aging.

Two more unique ingredients seen in K-beauty products are the usage of pearls in skin-brightening products and bee propolis for nourishing. Consumers today are very selective about the cosmetics they use on their skin and want natural components. As a result, the industry for K-beauty goods has benefited from consumer preferences and choices in skin care products. In addition, Korean beauty companies make the most of their expertise in digital and e-commerce to meet the rapidly expanding demand from international markets.

Several Korean skincare brands have been brought to the US through e-retailers, including Sokoglam and Peach & Lily, expanding the market outside. Additionally, international beauty merchants are creating specific sections on their websites to focus on Korean skincare brands. For instance, the French global personal care and cosmetics retailer “Sephora” just introduced a K-Beauty department. The West's journalists and social media influencers have also been interested in the K-beauty boom. The K-beauty businesses have been praised for using this as an inventive digital technique to get more popularity.

Market Restraints

Growing Veganism Goods

Beeswax, animal collagen, eggs, and snail extract are a few examples of animal-derived substances used in Korean beauty products. Contrarily, customers are turning more and more toward veganism for various reasons, including concern for the welfare of animals, the environment, and their health. Consumers are more likely to favor plant-based substances and oils like coconut oil, tea tree, green tea, and lotus leaf extract. The adoption of veganism is projected to induce a paradigm shift in consumer behavior that could restrict K-beauty items made with substances obtained from animals.

Market Opportunities

Demand from the United States and South Asian Nations

Fashion-conscious people have raised awareness of K-beauty goods because of the rapid growth of social media in North America and Asia. Blogs, YouTube, and Instagram, are the most popular channels for promoting and exchanging stories about skincare practices and goods. These platforms have aided in spreading awareness of these practices and products. The millennial generation has also become interested in products introduced by companies like Innisfree and Skin Food that contain natural, organic, and sustainably sourced components.

Regional Analysis

The regional segmentation of the global K-beauty products market is analyzed across North America, Europe, Asia Pacific, and LAMEA.

The Asia Pacific and North America will dominate the regional market

The Asia Pacific will likely command the market for the k-beauty product while growing at a CAGR of 8.3%. Asia-Pacific is where K-beauty goods are made. Customers in this area are more interested in goods that support skincare regimens. Additionally, people are demanding more and more beauty products made from natural and organic ingredients rather than synthetic ones. One of the biggest producers of K-beauty products is AmorePacific, a titan in the Korean beauty market, along with LG Household & Health Care. However, many lesser and tiny businesses also participate in the market with distinctive positioning. Due to its enormous population, rapid economic growth, and rising consumer spending power, the Asia-Pacific area represents the largest segment among all the regions.

North America is envisioned to hold USD 3,547 million, growing at a CAGR of 10.5%. Customers in North America are adopting a holistic approach to skincare that reflects their appreciation of beauty. Their approach to beauty is strongly affected by the Korean skincare rituals, which foster a relationship between the two markets. Beauty products with a light texture and distinctive, natural components are becoming increasingly popular, especially among women. The market for K-beauty products is expanding due to innovative and appealing packaging, which is crucial.

Products with clear labels that list the ingredients on the package appeal to consumers. Additionally, the celebrity endorsement of Korean beauty products on social media sites like Instagram and Facebook has dramatically increased consumer awareness. Combining these elements has created enormous prospects for K-beauty goods in the North American market.

Segmental Analysis

The global k-beauty products market is analyzed based on the product type, end-user, distribution channel, and region.

Per the Product Type, the categories include sheet masks, cleansers, moisturizers, makeup, and others.

The sheet mask section is predicted to advance at a CAGR of 8.87% and hold the largest share. The use of sheet masks has become popular all around the world. Most people have taken notice of the device because of how simple and convenient it is to use, from stay-at-home mothers to celebrities. Additionally, it is significantly altering the beauty industry in the United States due to celebrity influence on social media posts. Due to their concern for their health, consumers are choosing organic skin care products more frequently today. As a result, organic sheet masks are becoming increasingly popular and in demand, giving manufacturers a chance to expand their market.

The moisturizer section will hold the second-largest share. Korean skincare companies put a lot of effort into creating the ideal solution for a particular skin problem. They have a light texture and are made with ceramides that fortify the skin and plant-based oils. Because of this, K-beauty moisturizers are highly favored and chosen by customers worldwide. These moisturizers, which are lighter than conventional heavy-textured moisturizers, are very appealing to purchasers who are interested in beauty. They are produced utilizing formulas backed by science and cutting-edge ingredients and are offered for sale at reasonable costs.

Per the End-User, the categories include male and female.

The female section is predicted to advance at a CAGR of 8.8% and hold the largest share. A new definition of luxury is using things that may be altered and personalized. Women prefer to use skincare and beauty products made with elements that can treat their particular problems. The market for women's K-beauty products is seeing a significant increase in this trend. Additionally, a sizable consumer base has been drawn to buying beauty goods online because it is thought to be very handy and allows for various possibilities.

The male section will hold the second-largest share. South Korea is regarded as the top in terms of the aesthetic appeal of men. Comparatively speaking, men in Korea spend more on cosmetics than men elsewhere. Men are getting more self-conscious about their appearance today, and as a result, they use cosmetics like skincare and makeup to boost their self-esteem. Men's skincare options from K-beauty include a wide variety of items, such as well-liked BB creams, sheet masks, serums, and moisturizers. As a result, the market can grow in terms of sales value.

Per The Distribution Channel, the categories include online retail, supermarket/hypermarket, and specialty stores.

The specialty/ mono-brand store section will likely have the highest shareholding, growing at a CAGR of 8.27%. The specialized retail market for beauty and cosmetics is dominated by specialty retailers like Sephora and Ulta. Through in-store beauty experts, they help to impart comprehensive product knowledge and make it possible for customers to become aware of the product options. Specialty stores employ very knowledgeable workers about the cosmetics they sell, allowing them to provide customers helpful advice. Customers who purchase high-end K-beauty items demand specialized goods and attentive service that meets their unique needs. Specialty retailers also contribute to the development of client loyalty by offering post-sale services, offers, promotions, and other tactics.

The supermarket/hypermarket section will hold the second-largest share. Supermarkets, or “one-stop shops,” are a blessing for working women with busy schedules because they allow them to buy beauty goods alongside their food. Customers of various K-beauty companies have greater access to items because of the availability of beauty products in supermarkets and hypermarkets. This allows for time savings and a large selection of products. The potential for K-beauty product availability for customers has increased due to the rapid growth of supermarket chains across several nations.

Recent Developments

• In 2022, the Beauty Factory, Ltd. product, Plaiveille Medicated Disinfectant Mist, was launched in WWD Beauty Weekly as one of Shibuya Loft's “STAY HOME Top 5 Useful Self-Care Items.”
• In 2022, BolognaFiere, Informa Markets, and PBA – Professional Beauty Association, three top B2B trade show organizers, are teaming forces to provide the most significant and remarkable series of beauty events in the US beauty sector.