Premium Beauty and Personal Care in South Korea

PRE-COVID-19 PERFORMANCE

Personalisation and clean/natural trends evident, many players focus on travel retail due to strong duty-free industry

In 2019 personalisation and clean/natural traits were contributing to success in premium beauty and personal care. According to Euromonitor’s Beauty Survey, 90% of South Korean consumers responded that they are willing to pay more if personalised products based on DNA testing are featured in premium beauty, and 86% for natural ingredient formulation.

Sephora offers clean and conscious ranges, ingredients a key factor for consumers when making purchasing decisions

Sephora entered South Korea in 2019, and opened another opportunity for premium beauty and personal care. It demonstrated diversity in an environment where traditional/herbal skin care was the mainstream.

Niche fragrances perform well

Local players were strongly outperforming international brands in premium BPC in 2019. AmorePacific and LG Household & Health Care led, followed by international players such as Elca Korea, L’Oréal and Chanel.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care in South Korea are now expected to see a reduced performance in 2019 constant value terms in 2020 overall in light of the impact of COVID-19, down from the forecast in 2019 constant value terms in our 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within premium beauty and personal care

The category is suffering as a result of consumers trading down to cheaper alternatives, such as mass, masstige and private label. Consumers may continue to buy such products as lockdown restrictions ease, particularly if they find that their quality and results are comparable to those of the more expensive, premium alternatives.

Recovery and opportunities

As spending power remains limited, consumers may be attracted to products offered on discounts or in premium bundles or multipacks, which represent greater value for money. In addition, increased use of at-home alternatives will serve to compensate for the lack of visits to salons/spas, dentists, beauty services clinics, and dermatologists.

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