Exchange Rate: W1,132 2015; W1,161 2016; W1,131 2017; W1,110 2018; Sources: Korea Cosmetic Association KCAUnit: $ millionTotal market size: Total local production – total exports + total imports South Korea is the 9th biggest cosmetics market on earth, representing nearly 2. 8 % of the worldwide market. In 2018, the market was predicted to be $9. 3 billion; total local construction and total exports increased approximately 14.

7 percent and 26. 5 % respectively from the previous year. The market has grown annually by 5. 4 percent for the last 5 years 2014 2018. Meanwhile, total imports of cosmetics in 2018 rose 5. 4 % from 2017 and was worth $1.

6 billion. U. S. imports accounted for 23. 3 % of total imports. On a country by country basis, France $453 million was the greatest exporter to Korea in 2018, followed by the U.

S. $380 million and Japan $257 million. According to the Korea Customs Service records, skin care cosmetics persisted to be the largest import class representing 47. 8 percent, or $755 million of total beauty imports in 2019. Haircare products 14. 3 %, makeup cosmetics 13.

8 %, and perfumes and smells 11. 3 percent accounted for a higher largest import classes. Distributions ChannelsThere has been a growing to be demand for new retail channels as shopper demand is becoming more and more more segmented. The market has reacted, making select shops and multi shops more normal. In line with this trend, the 3 major health and wonder stores Olive Young, Lalavla, and LOHB’s grew for 3 consecutive years with 1,356 stores in 2017, 1,490 in 2018, and 1,512 in 2019. In addition, Sephora, the realm’s biggest cosmetics retailer owned by LVMH Group, opened its first store in Korea in October 2019, that includes a complete of 99 brands starting from not pricey to luxury.

By 2020, Sephora plans to open 14 more stores. The addition of these stores is expected to accentuate the competition in the market with major HandB stores and select shops corresponding to Chicor and Boots. South Korea may be the country with the maximum phone possession rate/broadband penetration rate and quickest common web speed. It is not marvelous that South Korea’s e commerce channels have become more and more prevalent for cosmetic products buyers. Sales via mobile browsing have elevated dramatically in recent times. According to the Korean National Statistical Office, cosmetics online looking transactions grew 25 % year on year to $10.

5 billion in 2019. Of these, mobile cosmetics transactions amounted to $6. 3 billion, up 32. 6 percent from the previous year, accounting for 59. 4 percent of total cosmetics online looking. The domestic cosmetics industry is actively using social network facilities SNS as a key tool in the industry, from the development stage of the product to sales and buyer inflow.

Strong capacity subsectors for U. S. exporters to South Korea include cosmeceuticals and derma cosmetics. Cosmeceutical is a beauty that has or claims to have medicinal homes, for example a product with anti aging property may be categorised as a cosmeceutical. Korea’s home cosmeceutical market, about $430 million in 2014, skilled 15 percent annual growth since then to reach $1 billion in 2019. Currently, the most up to date trends are products that claim anti pollution, anti aging, and antioxidant connected technologies.

When it involves additives, normal/organic/stem cells/probiotics, and peptides ingredients are the point of interest of attention at the present time. Two South Korean agencies, Amore Pacific and LG Household and Healthcare, dominate local creation market. In addition, Korean buyers are buying more merchandise without delay from abroad markets. Customers can now buy overseas brands at an identical prices as in the U. S.

, and an expanding number of brands are offering overseas delivery services. Overseas direct purchases represented greater than $3 billion in 2019, up 22. 3 percent from the outdated year. Cellmen Face 50 ml /vogue 38. 7%, food and drinks 25.

1%, digital items 12. 7%, and cosmetics 5. 3% are very established among overseas online Korean buyers. New Trends In March 2020 the South Korean executive announced the area’s first customized cosmetics system, which mixes cosmetics at stores in keeping with particular person skin condition and alternative. For instance, a native cosmetics flagship store now offers a adapted 3D mask. The skin care product makes use of a phone app, which measures purchaser’s facial dimensions, generates a skin diagnosis, and sends the tips to a special 3D printer, which then prints a hydrogel facial mask it's tailored to the user’s face shape and skin conditions.

In South Korea, cosmetics are regulated by the Ministry of Food and Drug Safety MFDS. Cosmetics fall under two categories: functional cosmetics and general cosmetics. Functional cosmetics, which previously comprised whitening, anti wrinkle, and sunscreen and tanning merchandise, were extended in 2017 to 10 categories by the MFDS. The new categories consist of hair colorants, hair food, and cosmetics that help give protection to broken skin. MFDS only comments useful cosmetics for pre market approval. For all other average cosmetics, the Korea Pharmaceutical Traders Association KPTA has been authorised by MFDS to check and certify import permission requests submitted by the Korean importer.

Also South Korea applied the Recycling Act in December 2019, that's applicable and affects all products available in South Korea together with cosmetics. Under the Recycling Act, the usage of plastic constituents that are complex to recycle comparable to PVC and coloured PET bottles has been banned. Under the implementation of U. S. –Korea Free Trade Agreement KORUS FTA in March 2012, tariffs on imported cosmetics were reduced.

All remaining Korean tariffs on imported U. S. cosmetics could be eliminated by January 1, 2021. Trade ShowsCOSMOBEAUTY SEOUL 2021 May 5 7, 2021ash. do?COSMOBEAUTY SEOUL 2018 drew 342 exhibitors from 14 nations and in way over 50,000 guests together with brands, distributors, wholesalers, agents, dealers, press, and basic public.

Key ContactsMinistry of Food and Drug Safety MFDS orea Pharmaceutical Traders Association KPTA orea Cosmetic Association KCA – ocal ContactMs. Heesook BaikCommercial Specialist U. S. Embassy Seoul188 Sejong daero, Jongno guSeoul 03141, KoreaTel: 82 2 397 4172heesook. export.