Asia Personal Care & Cosmetics Market Guide 2016

2012 2013 2014 2015
Total Market Size $6,236 $6,963 $7,759 $7,981
Total Local Production $6,326 $7,280 $8,511 $9,481
Total Exports $1,067 $1,290 $1,799 $2,587
Total Imports $978 $972 $1,047 $1,087
Imports from the U.S. $270 $285 $323 $316
Exchange Rate: USD1=KW 1,126 (2012); 1,095 (2013); 1,054 (2014); 1,132 (2015)
Sources: Korea Pharmaceutical Traders Association (KPTA), Korea Cosmetic Association (KCA)
Unit: USD million
Total market size: Total local production – total exports + total imports
Korea is the 10 th largest cosmetics market in the world, representing nearly 2.9% of the global
market. In 2015, the size of the Korean cosmetics market was estimated to be approximately $7.98
billion USD; the total local production and total exports increased 11.4% and 43.8% each from the
previous year. The market has grown by an average rate of 6.7% over the past five years.
South Korea’s total local production in 2015 was estimated at $9.5 billion USD, an increase of 11.4%
over the previous year. Local production growth of 13.9% a year on average (CAGR) over the past five
years shows the market’s ability to achieve stable and continuous growth as well as its capacity for
resilience in unfavorable economic conditions. Skincare represented 57.8% of local production followed
by make-up (15.9%) and haircare (13.0%). Production of bath preparations showed the highest CAGR of
33.1% while make-up cosmetics and personal deodorants and antiperspirants grew at 23.2% CAGR and
19.8% CAGR respectively.
Amore Pacific and LG Household & Health Care Ltd. are the two clear leaders in the Korean cosmetic
market, offering comprehensive product portfolios that cover a wide range of price points. These two
local companies dominate the sector with 41.3% market share, an increase of 19.3% and 12.3%
compared to 2014.
Exports of South Korean cosmetics have continued to grow rapidly, reaching $2.58 billion USD in 2015.
China is by far the largest export market for K-beauty, but Korean beauty companies have an increasing
presence globally. Exports of South Korean cosmetics to China doubled in 2015 reaching a record high
of $1.06 billion USD, accounting for 41% of South Korea’s total cosmetics exports. Hong Kong and the
U.S. were the second and third largest export markets for Korean products. Sales of cosmetics in South
Korea’s duty-free shops accounted for nearly half of the country’s record $5.1 billion USD duty-free
revenue in the first half of this year. This was bolstered by a large influx of wealthy Chinese tourists.
Total imports of cosmetics in 2015 increased from the previous year, reaching $1.08 billion USD. U.S.
imports accounted for 29% of the total market share, at $316 million USD. On a country by country
basis, the U.S. is the largest importer to Korea, followed by France ($307 million USD), Japan ($128
million USD), and Italy ($50 million USD).
According to Korea Customs Service statistics, skincare cosmetics continued to be the largest import
category in 2015 at 51.7%, or $722 million USD. Hair care, make-up, and perfumes and scents
accounted for 14.3%, 10.9%, and 10.3% of the total import market respectively.