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  • Korea, the Little Giant In the Global Cosmetic Market Close
    Korea, the Little Giant In the Global Cosmetic Market
    Korea’s cosmetics market is worth approximately USD 12.6 billion as of 2020, the 9th largest market
    in the world after India. By possessing its own cosmetics manufacturing technology,
    Korea has secured competitiveness in the global cosmetics market. Korea also serves as a test-bed for
    the product development of global brands.
    As K-Beauty 9th to be recognized as a major player in the global beauty market, the global demand for
    Korean cosmetics is rapidly increasing. Despite the COVID-19 pandemic, Korea’s Cosmetics have steadily
    increased and exceeded USD 7 billion for the first time in 2020. It has recorded an average annual growth
    rate of 15.7% (2016-2020), maintaining its status as the world’s fourth largest exporter of cosmetics.
    "Cosmetics Exports by Country"
    (Unit: USD million)
    Cosmetics Exports by Country Rank, Country, Years(2016,2017,2018,2019, 2020), CAGR (‘16-‘20)
    Rank Country 2016 2017 2018 2019 2020 CAGR
    (‘15-‘19)
    1 France 13,326 15,245 16,983 17,552 15,319 3.6%
    2 US 9,540 10,162 10,737 11,006 9,741 -0.2%
    3 Germany 8,301 8,691 9,684 9,472 8,221 -0.3%
    • 4
    • Korea
    • 4,224
    • 4,997
    • 6,308
    • 6,571
    • 7,602
    • 15.8%
    5 Japan 2,719 3,703 5,252 5,868 6,790 15.8%
    6 Italy 4,714 5,175 5,790 5,682 4,894 0.9%
    7 China 3,195 3,778 4,411 4,760 4,751 10.4%
    8 Hong Kong 1,837 2,325 3,151 3,730 4,675 26.3%
    ※ Source: ITC (2020), Foundation of Korea Cosmetic Industry Institute (2020)
    ※ Note: Classified according to Korean cosmetics standards / Singapore is excluded from the list of cosmetics manufacturing/exporting countries as its performance is centered on intermediary trade.
  • Maintaining Growth through Export Expansion Amid COVID-19 Open
    Maintaining Growth through
    Export Expansion Amid COVID-19
    The Korean cosmetics industry has continued to expand exports in order to respond to the slowing of
    domestic market growth and the market downturn caused by the COVID-19 pandemic.
    It has recorded an average annual growth rate of 3.8% over the past five years (2016-2020).
    The export of cosmetics, in particular, has recorded high growth, thanks to the popularity of
    Hallyu (Korean Wave) led by K-Beauty. Its average annual growth rate over the past
    five years (2016-2020) has reached as high as 15.8%.
    Cosmetics Production Category, Years(2010 ~ 2019)
    ※ Source: Ministry of Food and Drug Safety
    ※ The number of companies include only those manufacturers that have reported production performance.
  • Continued Investment in Korea Brands By Global Companies Open
    Continued Investment in Korea Brands By Global Companies
    Foreign investors’ continue to take interest in Korean's cosmetics market.
    Unilever, a global cosmetics company, acquired Carver Korea in 2016. L’Oreal acquired Stylenanda in 2018.
    Before and after these deals, other global companies, including Migros Corporation,
    Johnson & Johnson, and Clariant, continued to invest in the Korean market. Gowoon Sesang Cosmetics, in particular,
    has posted growing sales amid the COVID-19 situation, demonstrating the potential of K-Beauty.
    "Global Company – Korean Company Acquisition"
    Please refer to the information below
    Global Company – Korean Company Acquisition Country, Mother Company, Korean Company
    Country Mother Company Korean Company
    Singapore ARDMORE MEDICAL GROUP Thuringen Korea
    US Estée Lauder Have & Be
    The Netherlands Unilever Carver Korea
    France L’Oreal Nanda
    Switzerland Migros Group Gowoon Sesang Cosmetics
    Large view of images
    "Global Company – Korean Company Investment"
    Please refer to the information below
    Global Company – Korean Company Investment Country, Mother Company, Korean Company
    Country Mother Company Korean Company
    US Estée Lauder/L Capital Asia Clio
    US Johnson & Johnson Memebox
    US Clariant BioSpectrum
    Large view of images
  • Transform into The Main Export Industry of the Future Open
    Transform into The Main Export Industry of the Future
    The Korean government has been making efforts to intensively foster the cosmetics industry as
    a major export industry of the future. The government aims to make Korea one of the top three cosmetics
    exporters and create up to 308,000 jobs by 2022. It also plans to diversify export markets,
    which are currently concentrated in the Greater China region.
    Cosmetics Exports by 2022 - USD 79 billion, Jobs by 2022 - 308,000, Among Top 3 Cosmetics Exporters Large view of images
    In March 2020, Korea introduced the world’s first customized cosmetics sales system,
    which helps to foster customized cosmetics managers according to strict standards and offer
    a variety of products to meet the needs of various customers.
    Korea conducts consumer surveys and studies to understand the skin characteristics of Korean and
    New Southern (Southeast Asia and India) consumers, on topics such as skin measurement, skin genome analysis,
    and skin microbiological analysis. Based on the results, Korea develops customized products and
    prepares market entry strategies.
  • Active Support from the Central and Local Governments To Foster the Industry Open
    Active Support from the Central and Local Governments To Foster the Industry
    The Korean cosmetics industry is actively engaged in industrial activities, mainly in the metropolitan area
    where the market and distribution infrastructure are concentrated. Currently, 57.9% of the total number of
    businesses and 57.1% of the total number of employees are located in this area.
    In addition, regional clusters have been established in Gyeongsangbuk-do (Gyeongsan) and
    Chungcheongbuk-do (Osong), thereby contributing to the development of the Korean cosmetics industry.
    The establishment of K-Beauty Clusters has been continuously promoted through public-private
    consultative bodies in complexes, such as Osan Gajang Industrial Complex, Hwaseong Hyangnam
    Industrial Complex, Incheon Namdong Industrial Complex, and Chungbuk Osong/Ochang Industrial Complex.
    The Korean government plans to establish a K-Beauty Cluster, where one-stop service can be provided
    from cosmetics production, R&D on new technologies, beauty service and professional training, to promotion
    and consulting for SMEs. The cluster will serve as a base for fostering the K-Beauty industry.
    "Regional Beauty Industrial Clusters in Korea"
    Please refer to the information below
    • Incheon Namdong Industrial Complex
      • Build an image of the city of beauty
      • Consulting and education for the beauty service business
    • Osong Cosmetic Industrial Complex
      • Host Cosmetics & Beauty Expo Osong
      • Plan to establish global cosmetical and cosmetics promotion center
      • Plan to establish Osong Bio Valley
    • Osan Gajang Industrial Complex
      • Host Beauty Expo
      • Plan to establish Beauty Cosmetics Valley
    • Daejeon Industrial Complex
      • Beauty Festival under planning
    • Namwon Cosmetic Cluster
      • Establish eco-friendly cluster, eco-friendly cosmetics manufacturing facility
      • Establish Herb Valley, host Herb Festival
    • Daegu Hanny University Specialized Cosmetic Complex
      • Host Beauty Expo Daegu
      • Promote beauty tour, beauty center
    • Gwangju Science Valley
      • Open beauty street
      • Offer consulting and operate academy
    • Gyeongsan Specialized Cosmetic Complex
      • Support for overseas market entry
      • Cosmetics industry networking
    • Jeju Cosmetics / Food National Innovation Cluster (in progress)
      • Activate cosmetics cluster
      • Natural cosmetics product certification system
      • Establish a hub cosmetics city
    Large view of images
    ※ Source: Future strategies for the cosmetics industry (Ministry of Health and Welfare, May 2019)
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