Global K-beauty market to be worth $21.8 billion by 2026
A new study predicts that the global K-beauty market will be worth $21.8 billion within the next six years, as increased interest in organic ingredients and innovative skincare products drives consumers towards the growing cosmetics trend.
According to Portland, Oregon-based Allied Market Research, the K-beauty industry generated $9.3 billion in 2018 and is expected to see an impressive CAGR of 11.3% between 2019 and 2026.
The market research firm identified the intense R&D activities undertaken by a number of K-beauty brands as an advantage for the industry as more and more cosmetics consumers seek out products that contain ingredients that are both unique and organic.
The firm’s report did highlight the rise in popularity of competing vegan products as a potential stumbling block for the trend in the next few years, but pointed out K-beauty’s nascent male skincare category, as well as the Southeast Asian and U.S. markets, as growth opportunities with strong potential for the sector.
Geographically, the Asia-Pacific region accounted for more than two-thirds of the K-beauty market in 2018 and is expected to maintain its dominance in terms of market share for the time being. K-beauty’s strength in the region is thanks in part to the strong interest that consumers there have in natural products, as well as the successful penetration of smaller brands in these countries.
North America was the second largest market for K-beauty in 2018 but Europe is hot on its heels, and it is here that the trend is expected to see the fastest growth from 2019 to 2026, maintaining a CAGR of 12.6%.
In terms of specific products, sheet masks accounted for almost a quarter of the total K-beauty market in 2018 and are predicted to keep hold of the top spot moving towards 2026. But it is cleansers that are expected to see the highest CAGR (11.8%) over the next six years, thanks once again to K-beauty’s extensive R&D activities.
By distribution channel, speciality and monobrand stores currently account for the highest market share in the K-beauty industry, a fact that Allied Market Research puts down to the expertise of in-store staff, as well as better after-sales services and promotions.
However, while these stores are expected to maintain their lead in the near future, online retail is predicted to see the fastest CAGR of any channel from 2019 to 2026, posting growth of 13.0%.
The popularity of K-beauty is part of the wider cultural phenomenon known as the Korean Wave, which has seen South Korean music, films and TV shows take the world by storm. Major companies operating in the sector include AmorePacific, LG Household & Health Care, and Able C&C.
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