Structure of the Korean cosmetic industry
The Korean cosmetics industry is led by major conglomerates such as Amorepacific and LG Household and Health Care, but many smaller-scale companies are also emerging. Also, the structure of domestic cosmetics distribution channels is constantly changing. In the early 2000s, original brand shops such as Innisfree and The Face Shop became popular. However, recently, H&B stores and multi-brand stores like Olive Young and Sephora have become leaders in offline cosmetics distribution.Changes in distribution channels and increased demand for a wide range of products have also increased the responsibility of OEM or ODM companies. Cosmetic companies not only develop their own products but also entrust the production of cosmetics to these companies. The leading OEM/OEM company, Korea Kolmar, has seen significant sales growth over the past few years.
The future of the Korean cosmetic industry
Consumers are getting smarter and are showing greater interest in the ingredients of their products to whether the brand's values are right. According to a survey, over 70 percent of Korean respondents among multiple age groups said that they considered ingredients when purchasing cosmetics. Therefore, the demand for vegan beauty products that have not been tested on animals is expected to increase. In addition, container packaging companies that manufacture containers for products using eco-friendly materials are expected to grow further.
