June 13, 2022
(press release)
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With most of South Korea’s COVID-19 restrictions being lifted, the resurgence in household incomes and consumer confidence will drive spending on skincare products as consumers are wanting to take better care of their skin now they can leave their homes, found GlobalData, a leading data and analytics company. GlobalData’s latest report ‘South Korea Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’ reveals that the South Korean skincare market is projected to expand from KRW9.7 trillion ($8.5 billion) in 2021 to KRW12.8 trillion ($11.4 billion) by 2026 at a compound annual growth rate (CAGR) of 5.6%. The report also found that this market growth will be primarily driven by the facial care category, which has the fastest value CAGR of 5.7%, followed by the body care category, with a CAGR of 5.4%. Anush Shaw, Consumer Analyst at GlobalData, comments: “With COVID-19 cases falling, and the government lifting most restrictions, consumers are venturing out of their homes more frequently for shopping and social gatherings. Consumers are also returning to workplaces in greater numbers. This has resulted in many people purchasing premium quality skincare products to improve their appearance. While protective face masks are no longer mandated, consumers are continuing to use skincare solutions that repair skin damage due to their long term use of masks. Even as beauty salons reopen, the demand for do-it-yourself (DIY) skincare products will prevail. New product launches accompanied by above-the-line and digital marketing campaigns will bolster skincare sales.” Per capita expenditure (PCE) on skincare in South Korea increased from $40.2 in 2016 to $81.3 in 2021, surpassing the global average of $9.8, and the regional average of $9.2 in 2021. The PCE on skincare in South Korea is expected to skyrocket to $108.2 by 2026. Shaw continues: “With a sizable aging populace, the demand for anti-aging skincare products will increase significantly. Even as customer footfall at beauty retail outlets resumes due to the relaxation of COVID-19 restrictions, e-retailers’ and direct sellers’ channels will continue to gain more ground owing to the convenience and competitive pricing offers.” Direct sellers were the leading distribution channel in the South Korean skincare market in 2021, followed by health & beauty stores. LG Corp, Amorepacific Corporation, and L’Oreal S.A. were the top three companies in the South Korean skincare sector by value in 2021, and Sulwhasoo and The History Of Whoo were the leading brands.
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