From January to August 2024, several significant regulatory developments occurred in the APAC region. Notably, China introduced a transition period along with several regulatory documents for safety assessments and amended the Safety and Technical Standards for Cosmetics. Taiwan eliminated the category of specific purpose cosmetics and implemented unified management for all cosmetics. Additionally, updates regarding cosmetic ingredients, particularly the prohibition of specific substances, remain a key focus across various countries. It is crucial for enterprises to stay informed about these changes and adjust their strategies to comply with regulatory requirements.

Here are brief updates on key developments.

1. China

1.1 NMPA Amends the Safety and Technical Standards for Cosmetics 2015

On March 21, 2024, NMPA announced significant amendments to the Safety and Technical Standards for Cosmetics (2015 Edition) (STSC). The updates include:

1. Addition of 5 newly prohibited ingredients: Bimatoprost, Tafluprost, Taflupamide, Travoprost, and Latanoprost;
2. Revision of 3 existing testing methods, including those for dioxane and other prohibited and restricted ingredients;
3. Introduction of 11 new testing methods, covering areas such as acute inhalation toxicity, skin sensitization, and reproductive toxicity.

The updated ingredient list is in effect immediately, while the revised testing methods will take effect on December 1, 2024.

1.2 China Sets Transition Period for Submitting Complete Safety Assessment Reports and Issues Multiple Regulatory Documents to Clarify Safety Assessment Requirements

Under CSAR framework, cosmetics registrants and notifiers are required to submit product safety assessment documents during registration and notification. Until May 1, 2024, they have the option to submit a simplified safety assessment report. However, from May 1, 2024 onwards, the full version of the assessment report must be submitted.

Considering industry challenges, China’s National Medical Products Administration (NMPA) has extended the transition period. Registrants and notifiers can still submit a simplified safety assessment report before May 1, 2025, as long as the assessment was started before May 1, 2024.

To guide companies, in April and July 2024, NMPA issued several new regulatory documents related to safety assessment. This includes guidelines that classify submission requirements based on risk management principles and provide self-examination points for the assessment reports.

ChemLinked Comments

With these supporting policies and optimization measures, the full safety assessment report system can be effectively implemented in China’s cosmetics industry.

Although the NMPA has provided a transition period for companies, it is advisable to proactively prepare for the full version of the report. This includes assembling qualified personnel, reviewing ingredients and addressing data gaps, and seeking expert consultants, etc.

2. Taiwan

2.1 TFDA Amends Cosmetic Ingredient Use Requirements

Taiwan Food and Drug Administration (TFDA) issued several announcements on December 13, 2023, January 4, 2024 and May 30, 2024, regarding the revision of prohibited and restricted ingredients for cosmetics. Please refer to the table below for the specific amendments.

2.2 Taiwan Cancels Specific Purpose Cosmetics Category and Implements Unified Management for All Cosmetics

On July 1, 2019, Taiwan enacted the Cosmetic Hygiene and Safety Act, its primary regulation for cosmetics. According to the Act, the category of specific purpose cosmetics was discontinued as of July 1, 2024. From that date, all cosmetics in Taiwan are regulated under a unified management system, resulting in changes to the scope of application and expressions of Taiwan’s cosmetic regulations, including ingredient lists, pre-market notification, Product Information Files (PIF), Good Manufacturing Practices (GMP), and product labeling.

Beginning July 1, 2024, manufacturers and importers of cosmetics previously classified as specific purpose must complete product notifications, establish product-specific PIFs, ensure GMP compliance, and meet updated labeling requirements before marketing their products in Taiwan.

3. South Korea

3.1 South Korea Bans THB in Cosmetics

On December 7, 2023, South Korean Ministry of Food and Drug Safety (MFDS) proposed an amendment to the Regulation on Safety Standards for Cosmetics. The purpose was to prohibit the use of 1,2,4-trihydroxy benzene (THB) as an ingredient in cosmetics. The decision was based on safety verification results from the Cosmetic Ingredient Safety Evaluation Committee, which indicated that the genotoxicity potential of THB cannot be ruled out.

The amendment was finalized on February 7, 2024, and MFDS officially implemented the ban on THB in cosmetics.

3.2 South Korea Consults on Cosmetic Safety Standard

On August 2, 2024, the Ministry of Food and Drug Safety (MFDS) released a notice to solicit public feedback of the modifications to Cosmetic Safety Standard till October 3, 2024. The authority proposed to designate one new UV filter, delete one UV filter, and enhance the usage limits of six restricted ingredients.

MFDS Consults on Cosmetic Safety Standard: Enhancing Management of UV filters, D4, D5, and Other Ingredients as below;

4. Japan

4.1 Japan Approves a New Ingredient for Rinse-off Hair Styling Products

On March 8, 2024, the Ministry of Health, Labour and Welfare (MHLW) of Japan released a proposal for the Standards for Cosmetics, inviting public consultation. The proposal requests the inclusion of “Cysteamine Hydrochloride” as an ingredient for rinse-off hair styling products. The proposal was finalized on July 12, 2024, and came into force upon issuance.

ChemLinked Comments

Cosmetic manufacturers and distributors are required to adhere to the updated guidelines, which may involve modifying product formulations, manufacturing processes, labeling, and quality control measures.

5. ASEAN

5.1 ASEAN Updates ASEAN Cosmetic Directive (ACD)’s Ingredient Annexes

The ASEAN Cosmetic Committee (ACC) and ASEAN Cosmetic Scientific Body (ACSB) hold meetings twice a year to discuss the latest developments in ASEAN cosmetic industry and related regulations, annexes related to ingredients.

On July 1, 2024, the Singapore Health Sciences Authority (HSA) issued the updated ingredient annexes approved during the 39^th ACSB meeting. The key amendments include:

1) Annex II – List of Prohibited Ingredients: 1 revised

2) Annex III – List of Restricted Ingredients: 3 revised, 1 added

3) Annex VI – List of Permitted Preservatives: 9 revised

4) Annex VII – List of Permitted UV Filters: 2 revised

In addition to the amendments mentioned above, there are also some updates to the CAS No. information for 56 entries in the annexes.

ChemLinked Comments

The amendments to the ingredient annexes of ACD apply to all ASEAN member states. However, the timeline for each member state to formally adopt these amendments may vary. So far, member states such as Malaysia, Singapore, Vietnam, and the Philippines have adopted these amendments.

6. Indonesia

6.1 Indonesia Proposes to Amend Cosmetic Ingredient Use Requirements

On March 1, 2024, the Indonesian Agency for Food and Drug Control (BPOM) released the amended draft of the Technical Requirements for Cosmetic Ingredients for public consultation until March 19, 2024. The proposed amendments include:

1) Deleting requirements specifically related to cosmetics containing alpha arbutin or beta arbutin;

2) Appendix I: List of Restricted Ingredients – 1 revised;

3) Appendix III: List of Permitted Preservatives – 2 deleted;

4) Appendix IV: List of Permitted Sunscreens – 1 revised;

5) Appendix V: List of Prohibited Ingredients – 75 added.

ChemLinked Comments

The proposed amendments to Indonesian cosmetic ingredients align with the amendments made to the ingredient annexes of the ASEAN Cosmetic Directive (ACD) during the 36^th, 37^th, and 38^th ACSB meetings.

For salicylic acid in Appendix I List of Restricted Ingredients, the only adjustment is the serial number in the usage requirements, which is a result of the removal of two preservatives from Appendix III. The usage limit and conditions for salicylic acid remain unchanged.

7. Thailand

7.1 Thailand Amends Cosmetic Ingredient Use Requirements

From January to August 2024, Thailand issued several announcements regarding revisions to the requirements for cosmetic ingredients. Some of these announcements were formal revisions, while others were drafts. The updates are as follows:

1) List of Prohibited Ingredients: 2 added, 1 revised, and 56 proposed for addition.

2) List of Restricted Ingredients: 8 added, 1 revised, 1 deleted, 3 proposed for addition, and 1 proposed for revision.

3) List of Permitted Colorants: 1 revised and 1 proposed for revision.

4) List of Permitted Preservatives: 1 revised.

5) List of Permitted Sunscreens: 1 added and 1 proposed for revision.

ChemLinked Comments

As a member of ASEAN, Thailand has been somewhat delayed in adopting the revisions to the ingredient use requirements outlined in the ACD. The above adjustments aim to align with previous updates from the ACD.

8. New Zealand

8.1 New Zealand EPA Bans PFAS in Cosmetics

On January 30, 2024, the New Zealand Environmental Protection Authority (EPA) announced a ban on PFAS in cosmetics. The ban, outlined in the updated “Cosmetic Products Group Standard,” reflects New Zealand’s precautionary approach to managing the potential risks associated with these chemicals.

To ensure compliance, the ban on PFAS in cosmetics includes the following transitional provisions:

1. Manufacture Ban: Starting from December 31, 2026, the manufacture and import of cosmetic products containing PFAS will be prohibited;
2. Sale Ban: As of December 31, 2027, the sale of cosmetic products containing PFAS will be banned;
3. Product Disposal: All remaining cosmetic products containing PFAS must be disposed of by June 30, 2028. This ensures the complete removal of these products from the market and minimizes potential PFAS exposure.

9. Australia

9.1 Australia Adopts Updated Sunscreen Standards

On April 11, 2024, the TGA announced the adoption of the Australian/New Zealand Standard: Sunscreen products – Evaluation and Classification (AS/NZS 2604:2021) (amended) into therapeutic goods legislation framework. This updated standard enhances testing and labeling requirements for sunscreens available in the Australian market. Notable changes compared to its predecessor include:

• Incorporation of the latest ISO Standards for sunscreen testing, including “ISO 24444:2019 Cosmetics—Sun Protection Test Methods—In Vivo Determination of the Sun Protection Factor (SPF),” “ISO Standard 24443:2021 Determination of Sunscreen UVA Photoprotection in Vitro,” and “ISO 16217:2020 Cosmetics—Water Immersion Procedure for the Determination of Water Resistance.”
• Introduction of a new flow chart to guide sponsors (product owners) in determining the applicable sections of the standard for primary and secondary sunscreens.
• Addition of labeling instructions for aerosol and spray pump pack sunscreens, advising consumers on the appropriate amount for effective protection against UV radiation, and cautioning against spraying these products on the face or in windy conditions to avoid product inhalation.

Further Reading

• China Expands Recognized Ingredient Safety Data for Safety Assessment Report
• Taiwan Restructures Cosmetic Ingredient Lists, Effective July 1, 2024
• Updates to ASEAN Cosmetic Directive (ACD)’s Ingredient Annexes: 15 Revised and 1 Added
• Australia Adopts Updated Sunscreen Standards

ChemLinked Cosmetic Portal (cosmetic.chemlinked.com) is a media platform operated by REACH24H Consulting Group. Our focus is on providing comprehensive one-stop-market access information services and solutions to members of the cosmetics industry, including domestic and foreign manufacturers, trade logistics, raw material companies, as well as government departments, industry associations, and research institutions.

We offer a wide range of global cosmetic market entry services, including Global News Alerts, Cosmetics Product Registration and Notification, New Cosmetic Ingredient (NCI) Registration/Notification, Regulatory Consultation, Customized Training, Market Research, and Branding Strategy. Please contact us to discuss how we can help you by cosmetic@chemlinked.com

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Green cosmetics, health care, and time-saving beauty: Japan’s post-Covid epidemic consumption focuses on efficiency and balance inner and outer environments

The restrictions on activities due to the coronary disaster have been gradually lifted, and the mode of self-restraint has faded. Although there were hopes for so-called “revenge consumption,” the situation has remained the same as before, with the economy cooling down and people’s lives being affected by the infection.

In addition, the high cost of living triggered by some localized regional frictions and the rapid depreciation of the yen have not stimulated consumption to the same degree.

Although the unstable six months of 2024 1st half oscillated between such an uncertain future and a slightly liberated mood, Japanese consumers are beginning to think about the relationship between ‘their inner and outer environments’, the relationship between work and life balance.

The change in social awareness due to the spread of the SDGs, the need for stress care due to the Corona disaster, and the increasing number of people seeking spiritual happiness and a more careful lifestyle in a time-pressured world overflowing with goods and information are all major factors.

Cosmetics aren’t the basic Beauty Care anymore, cosmetic consumption that values health, autonomy, sustainability and ethics is in the trend, more and more Japanese customers will remove the veneer of cosmetics to explore and evaluate their deeper values and their essence.

Time Performance Cosmetics is trendy

The Cosmetic industry is now paying attention to the trend of “time value performance consumption,” a consumption trend that has begun to spread mainly among Generation Z.

“Time performance,” meaning time vs. effectiveness, has been attracting attention since around 2022, and this trend is accelerating in the beauty industry as well.

In fact, an analysis of word-occurrence rates of word-of-mouth comments posted online shows that while “time-shortening” has remained flat, “Time performance” has grown significantly, with a seven-fold increase in occurrence rate over 2024.

A study says that the reason why a wide range of generations have become more type-oriented and time-consuming is deeply related to the change in values and digitalization. The first industrial revolution around the 18th century further accelerated the trend toward rationality, which has been further reinforced by “digitalization” since the beginning of the 21st century.

The spread of the Internet has made it possible to collect information efficiently, and social networking has strengthened the tendency to associate only with people who are beneficial to one’s interests. In this way, a value system has spread in which “the more rational, the better” in many things. Time is limited, time is short and valuable. Even for skincare and makeup, we tend to spend less time, do it more effectively.

Sleep Care Cosmetics, a Big Hit

This year, products focusing on sleep have been a hit one after another.

The following products were selected in various awards, including Nikkei TRENDY (Nikkei BP) and the “anan Karada-Yo-Ioi-Mono Grand Prix” (Magazine House), in which women’s magazine editors actually try and select products for their bodies. Nutritional drink to relieve fatigue while sleeping, Haircare product for “night time beauty” that focuses on dryness and friction damage during sleep. More and more products are coming to Japan, targeting the opportunity to achieve better sleep and a better skin at the same time.

Japan has the fewest hours of sleep in the world, and only 30% of the population is satisfied with their sleep, which seems to be the background to the increasing number of cosmetics and functional food products in the sleep field on the market, the unprecedented new ideas such as fatigue recovery during sleep, haircare during sleep, and warming the ears to fall asleep that captured the hearts of many people. Beauty came from good sleep and this trend is also related to the last trend ‘short-time, time saving beauty’ as well.

Green Beauty & SDGs

Clean beauty is a new genre of cosmetics born from the growing health consciousness that has made people more particular about the ingredients of cosmetics, and from the needs of modern people to use environmentally friendly products. The number of brands that carry the Clean Beauty label is increasing worldwide, including Japan.

The definition of “clean beauty” varies widely, but there are three main points well noticed by Japanese customers.

1. Natural ingredients and no ingredients that are harmful to the skin or body.

2. Recyclable materials are used for packaging, etc.

3. They do not test on animals and are considerate of the working environment of the people involved in their production.

And with the spread of the SDGs, cosmetics that are gentle to the body, such as cosmetics that are comfortable to use and that have less burden on the body, as well as cosmetics that protect the natural environment and that allow people and animals to live on a sustainable planet, are attracting attention.

Big group such as SHISEDO, POLA & ORBIS are now working on a project covering the following topics:

– Development of environmentally friendly containers and packages
– Development and promotion of containers that can be refilled and reattached
– Collection and recycling of used plastic containers
– Development of containers and raw materials using plant-derived materials
– Initiatives focused on supporting women’s activities and gender equality

Green/Clean beauty not only needs to bring the natural joy and peace to our skin, but also have to take care of our natural environment.

Men’s Cosmetics, Diversification of Beauty Needs is Just Around the Corner

The excitement of men’s cosmetics is even more powerful this year. The number of media and retailers that carry men’s cosmetics has increased, and now not many people feel uncomfortable with men’s beauty behaviours such as skincare, hair removal, nail care, and makeup.

The focus of attention is Men’s Non-No. The Men’s Non-No Beauty Awards 2024, Japan’s largest men’s cosmetics award, is being held for the eleventh time. The special website for the awards shows a surprisingly large number of categories, with a total of 18 in all. The award categories are as detailed as those in women’s beauty magazines, including face wash, lotion, sheet mask, all-in-one, base makeup, eyebrow and eye makeup, beauty gear, and unwanted hair care.

The user base is still limited, as men are not as interested in taking care of themselves as women, which means they are less likely to take beauty actions.

In addition, the beauty categories in which they are interested are not as broad as those for women, so it is not easy to stimulate consumption, but there is plenty of room for growth, especially among younger consumers. It will be interesting to see how the men’s cosmetics market will grow, and what impact this will have on the women’s market. This is also an interesting question.

Expansion of the DtoC model

DtoC stands for “Direct to Consumer,” and refers to a business model that does not use wholesalers or retail stores as intermediaries, but approaches consumers directly and leads to contracts and purchases.

Examples include cosmetics brands such as DUO, whose main product is cleansing balm, and SHIRO, which also sells fabric products and home fragrances.

A similar term is BtoC, which refers to business-to-consumer, or business-to-business transactions between retailers such as department stores and supermarkets and consumers.

The expansion of the DtoC model has been driven by recent consumer needs.

They are looking for products that not only offer functional value, but also unique concepts and stories, and unique experiences (high quality and uniqueness), and demand is growing for DtoC models that can introduce product concepts directly to users.

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In the realm of beauty trends, the ‘2024 Opensurvey report’ in South Korea sheds light on the skincare and makeup routines of Korean consumers.

On average, consumers use approximately 5.99 skincare products, with a significant portion opting for four or more products simultaneously. This underscores the meticulous attention given to skincare routines, with combinations ranging from basic toner and cream usage to more elaborate regimes involving mist, essence/serum/ampoule, and face oil/lotion/emulsion.

Similarly, makeup routines also demonstrate diversity, with an average of 5.96 products being used per person. While basic routines may consist of cushion and lipstick, more comprehensive approaches encompass various base products like makeup base, foundation, along with an array of lip products.

In terms of product selection criteria, effectiveness and texture emerge as paramount considerations for both skincare and makeup products. Additionally, factors such as price-value ratio and positive online reviews hold significance. Interestingly, brand recognition and values appear to hold lesser weight compared to product efficacy, texture, price, and online reviews.

These recent trends of Korean consumer behaviours seem to have an impact on the 2024 K-Beauty market trends as introduced below from ‘THE mighty’ brick-and-mortar dinosaur OliveYoung and up-and-coming e-commerce Beauty platform BeautyKurly;

Boundless Beauty:

As we step into 2024, the concept of “boundless beauty” takes centre stage, transcending traditional boundaries between beauty and health. Consumers are seeking products that not only enhance their appearance but also contribute to their overall well-being. OliveYoung’s introduction of the “Health+” category within its application underscores this trend, catering to individual concerns with a curated selection of health supplements and inner beauty products.

그림 1. OliveYoung Apps page with Health+ category, Oliveyoung website (2024)

Omni Channel Experience

The omnichannel experience continues to redefine the retail landscape, emphasizing seamless integration between offline and online platforms.

Brick-and-mortar stores are no longer mere sales outlets but serve as communication hubs, offering immersive experiences and storytelling to engage consumers on a deeper level.

A brand like TAMBURINS exemplifies this approach, with flagship stores in Seoul attracting both domestic consumers and international tourists seeking unique, experiential shopping destinations.

TAMBURINS is a fragrance & skincare specialty brand, and they have opened flagship stores in Sinsa-dong since the launch of the brand in 2017.

Since then, they have opened flagship stores in Samcheong, Dosan, and Hannam, and these stores are not meant for sale but are recognizing cosmetics as content and appealing to consumers with a new approach.

In addition, each store introduces a different concept and store design, and at the same time presents a variety of pop-up stores and exhibitions for each season, making it an essential visit for not only domestic consumers but also foreign tourists.

그림 2. TAMBURINS flagship store in Seongsu, namuwiki

Teenager Beauty

The influence of teenagers in the makeup category cannot be overstated. Brands are increasingly tailoring their offerings to resonate with the preferences of this demographic, leveraging social media and pop culture to capture their attention.

From vibrant colour palettes to cruelty-free formulations, brands like Dasique and Etude House are setting the pace for innovation and inclusivity in the beauty industry.

Dasique, a brand that specializes in make-up products, is gaining enthusiastic popularity not only in Korea but also in the MZ generation, including teenagers in Japan.

In particular, by maximizing colour variation, which can be somewhat limited, dozens of options are introduced for each colour line, while also adding cool and warm tone segments separately, which are not common for make-up brands, but also has elements that appeal to the MZ generation at home and abroad.

In addition, Etude House and Espoir, which have already been proven to be competitive by consumers of the MZ generation in Korea, China, and Japan, are preparing to aggressively target overseas markets through new lines that have re-established new designs, packaging, and concepts based on Hallyu and K-Beauty content, solidifying dominance in the domestic market.

그림 3. Dasique product page at OliveYoung website (2024)

그림 4. Etude House product page at OliveYoung website (2024)

그림 5. Espoir product page at OliveYoung website (2024)

Conscious Beauty

The rise of conscious beauty reflects a shift towards sustainability, ethics, and transparency in the cosmetics industry.

Leading brands like Amore Pacific are championing this movement, enforcing strict compliance across all brands and fostering a culture of accountability.

With a growing emphasis on eco-friendly practices and community engagement, conscious beauty is no longer just a trend but a guiding principle driving industry standards.

Along the way, AmorePacific is typically strengthening sustainability governance for individual brands, such as by publishing “2023 Sulwhasoo Sustainability Report” published last April for the first time as an individual brand in Korea apart from AmorePacific Sustainability Report since 2016.

그림 6. Sulwhasoo Sustainable Report Cover, AmorePacific (2024)

Men’s Grooming

Men’s grooming is experiencing a renaissance, fuelled by a desire for self-care and personal expression.

Perhaps not many people know that the Korean male cosmetics market was the largest market in the world until a few years ago.

Although the rapid growth of the Chinese men’s beauty market is now receiving more attention, the Korean market is still an innovative market for men’s beauty.

Korean brands like Dr.G are leading the charge with derma-inspired products that simplify skincare routines without compromising effectiveness.

From multifunctional all-in-one formulations to targeted solutions for specific concerns, the men’s grooming market continues to expand, challenging stereotypes and redefining conventional notions of masculinity.

그림 7. Dr.G Men’s product page at OliveYoung website (2024)

Luxury Market Emphasis on Customer Experience

In the luxury beauty market, customer experience takes precedence, with brands prioritizing personalized service, exclusivity, and immersive experiences to enforce brand loyalty and appearance.

This change is also seen in the recent move of Sulwhasoo, Korea’s leading luxury brand. In order to become a K-Beauty Hip icon from the romance of Korea’s representative ‘Ajumma’, the brand model was also replaced by Rose of Black Pink, a K-pop idol, and the entire six-story building in Dosan Park was renovated into a flagship store, allowing everyone who comes to the store to ‘see, feel, taste, and enjoy’ Sulwhasoo depending on the purpose of each floor.

그림 8. Sulwhasoo flagship store at Dosan, Womentimes

그림 9. The House of Sulwhasoo Bukchon, Market Economy Journal

Professional Home Care

The normalization of homecare routines is observed, with consumers increasingly incorporating professional-grade skincare treatments and devices into their daily regimens.

Lagom is a brand created by Kowon, one of Korea’s most sought after celebrity makeup artists, Lagom delivers an advance take on skin hydration. Interesting feature of the brand is a philosophy that great make-up comes from great cleansing which Lagom’s special and effective cleansers are best sellers within the brand.

FOBO (Fear of Better Option)

Information overload is driving a fear of missing out on the best products and experiences. OliveYoung are leveraging consumer feedback and big data analytics to stay ahead of trends, curating product selections that resonate with discerning shoppers. Transparency and authenticity are paramount as consumers rely on peer reviews and recommendations to make informed purchasing decisions.

Early (anti-ageing)Care Syndrome

There’s a growing trend of starting anti-ageing skin care routines with consumers coming more proactive in addressing skincare concerns early on in life.

In particular, COSRX, which has recently attracted more attention in overseas markets than in Korea, is introducing its snail mucus filtrate product line through Olive Young, which has been used by Korean consumers for a very long time, now attracting youngsters’ attention as a product that can manage skin elasticity and moisture without resistance.

In conclusion, the 2024 beauty trends in the Korean cosmetics market reflect a dynamic blend of innovation, inclusivity, and sustainability.

For K-Beauty growth, Brick-and-mortar stores like OliveYoung serve as incubators of creativity and community, driving the industry forward with experiential retail concepts and consumer-centric initiatives.

As we navigate the ever-changing landscape of K-Beauty, one thing remains clear: the future of cosmetics is boundless, promising new horizons of possibility and potential for all.

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The home of K-Beauty, South Korea, has the smallest population amongst the world’s top 10 markets with only 50 million people, but it has the 8^th largest market size in the world (Euromonitor, 2022). K-Beauty became popular in the global market with the first ever introduction of 10-step routines, sheet masks, BB cream, CC cream and foundation cushions. Still, not many are aware that South Korea is the third largest cosmetic export country in the world after France and the United States, which placed ahead of Germany and Japan.

This small but mighty beauty powerhouse could not be free from the effects of the last three years of the pandemic. Multiple new trends and environmental changes have emerged due to the influence of Covid-19. The most dominant one is ‘sustainability’, with ‘clean beauty’ dominating the market in Korea. As a result of CMN’s expert survey (2022), “Clean Beauty” was selected as the first keyword in the market in 2023. Along with ‘vegan beauty’, words with eco-friendly images have formed the biggest trend.

These 38 CMN experts said that ‘core ingredients’ are the most searched for key word with 55.3%. Of those core ingredient searches, ‘hyaluronic acid’ was the most popular with 36.8%. Following that was ‘collagen’ (23.7%), ‘organic’ (18.4%), ‘ceramide’ (18.4%), ‘natural’ (15.8%), ‘vitamin’ (13.2%), ‘probiotics’ (13.2%), ‘peptide’ (10.5%), ‘fermentation’ (10.5%), ‘panthenol’ (10.5%), ‘tea tree’ (7.9%), and ‘centella asiatica’ (7.9%). In addition to ‘clean beauty’, plant extracts have been very popular searches in K-Beauty, with ‘collagen’, ‘centella asiatica’ and ‘houttuynia cordata’ all mentioned.

With these sustainability trends in mind, REACH24H Consulting Group Korea’s Seongmin (Mike) Sohn and Jaeyoung Kim interviewed 5 exhibitors for in-cosmetics Korea. The interviewed exhibitors are NB Bio Company, EastHill Corp., Opt-Bio, CoSeedBioPharm, and Smile Company.

Yeonjoo Ahn from NB Bio Company emphasized that most of the ingredient companies are fighting to follow the sustainability trend in Korea. They introduced PHYTO SILVER COLLA as a plant-derived collagen ingredients with upcycled materials made from coffee bean wastes, and their way of being more sustainable. EastHill also created Trascobic, a plant extract that promotes the differentiation of vitamin C transport proteins.

Both companies said that they create new products with ingredients that are already familiar to their consumers, but also look at finding Korea’s more unique raw materials to use. Jeju island is a well-known tourist spot in Korea and abundant with plant life, which has been used for some distinct plant extract ingredients. Jeju specialties are ‘camellia’, ‘citrus’, ‘green tea’, ‘rape’, ‘mulberry’, ‘turmeric’, ‘rock hydrangea’ and ‘evening primrose’.

CoSeedBioPharm is one of the leading Korean suppliers providing low molecular functional products by various plants and marine ingredients originating from Jeju. They have 70+ products; ‘Machilus Japonica’, ‘Ficus Oxyphylla’ and ‘Cornus Kousa’ to name a few. Seonwon Kim, manager of CoSeedBioPharm said that putting efforts into securing ingredients of Korean origin ingredients is very important but has become more difficult over time.

There are various protocols and regulations that have to be followed; like benefit-sharing with the Nagoya protocol, efficacy testing, safety testing, sustainability, technology (extraction, low molecularization, standardization), marketing (conceptual point, tools, measures), and most of all, complying with overseas regulations. With all the regulation and sustainability issues that have developed over the years, some Korean suppliers are seeking answers outside of Korea. “Smile Company” introduced herbs collected from Cyprus, a Mediterranean island south of Turkey. ‘Everlasting’, ‘Rockrose’, ‘Watermint’, and ‘Houttuynia cordata’ are ingredients strictly controlled by the Cyprus government and Research Team leader Hyungjung Han says that these collections of raw materials are limited to companies with licenses. They’re either hand-picked or scissors-cut so even without the typical Korean origin story, it still appeals to consumers. It has the added bonus of having lowered regulatory hurdles for ingredient suppliers.

There are many products that have a comparative advantage based on their superior quality and are easier to produce thanks to the advances in technology. With R&D there’s been some new production technologies, such a separation and refinement, that have helped bring the industry into the future. With these advances it’s ramped up international competitiveness by having higher levels of hardware and excellent production facilities in Korea. To gain competitiveness of high-end manufacturing system, EFfCI-GMP (European Federation for Cosmetic Ingredients-Good Manufacturing Practice) certification has been one of the key requirements to pass. OptBio, one of the leading extract manufacturers in Korea, has recently got certified for EFfCI-GMP for their second manufacturing site reaching up to 5,300㎡. Through this facility they introduced the GN Tannin Ampoule. It’s their unique product that has increased tannin content by 10 times compared to general extraction process through an eco-friendly method that destroys cell structure. This uses ultrasonic extraction, and it does not need the extra addition of solvents.

The Korean government’s interests, support policies, and public investment are needed for future K-beauty and raw material industries. It’s urgent to strengthen cosmetics regulations and support export licenses due to protectionism. To break the non-tariff barrier, two major approaches are executed; regulation monitoring with education and actual consulting service funding program to assist them for product registration in local markets. KCII, the only government body to promote K-Beauty industry has collaborated with REACH24H to provide regulatory updates, seminars and training and even published a guideline ‘How to comply with China cosmetic regulations’ in 2022.

In addition to the companies interviewed above, the 2023 in-cosmetics Korea is expected to exhibit many companies and products that reflect the latest Korean cosmetics raw material trends. There will also be seminars on the latest marketing trends and regulations to keep up with the ever-changing personal care industry.  

Register your interest to come to in-cosmetics Korea and see these products for yourself.

See the rest of the exhibitors in our Exhibitor Directory.

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As with industries across the world, cosmetics and personal care has had to adapt (and quickly) to the effects of the pandemic. There have been opportunities for innovation along the way and an increased dependence on e-commerce, but the industry has really had to demonstrate it’s resilience.

Mike Sohn is General Manager of consulting group REACH24H in Korea, and his expertise in market research has put him in the perfect place to observe these trends developing. We caught up with him about what he thinks will be the lasting effects of the pandemic and how the industry will fare going forward.

Back in March 2020, we couldn’t have predicted the scale in which COVID-19 would change the way we live and work. Many industries have been hard-hit, but some e-commerce platforms are booming. How does this translate to the cosmetics industry specifically?

E-commerce platforms have been up & coming in the beauty market for the last few years. Clearly, the pandemic has accelerated consumers’ dependence on online shopping as e-commerce platforms have now become the core location for distribution. The pandemic has also had a significant impact on sales of cosmetics which account for a high percentage of consumer goods.

Monthly online payments in Korea reached nearly $13 billion in October, up more than 20% from that of last year. The figure still shows a significant increase from February’s $11 billion.

Marketing strategies and product promotion have also moved online, meanwhile the reliance on platforms such as SNS (social networking services) has never been greater. Not to mention the market expansion driven by the influx of consumers in their 50s and 60s, sometimes known as ‘Silver Surfers’, into the online market.

In a sense, I believe that new functions and forms of products have also contributed to the expansion of the overall cosmetics categories as new life patterns such as masks and disinfectants have been developed.

The pandemic has changed consumer needs, with a renewed focus on hygiene, skincare and “maskne” and staying power for make-up products. Which areas have you seen an increase in popularity and were there any that you hadn’t expected?

There is no objection to the growing popularity and sales of disinfection-related products and skincare. Items such as non-residue makeup products have become more popular because both the number of people working at home has increased and the frequency of going out has decreased. Some experts expected the spread of colourful eye makeup trends that emphasize the exposed eye area but in reality, we have to accept the fact that no-makeup trend has deepened as a result.

Do you think this will have a lasting impact on demand for hygiene products in Korea, APAC and around the world?

The market in this field has not only expanded, but its sustainability can be guaranteed.

Suppose that the demand and usage rates of hygiene products are 10% prior to this pandemic – how about now? If 90% of people are using them, perhaps this demand will not revert to 10% even if this situation is terminated, and instead converge somewhere between 10 and 90. Therefore the market in this field has not only expanded, but its sustainability can be guaranteed.

Even though the vaccine is being rolled out globally, the timeline is yet unclear. With some countries receiving vaccines before others, what strategies will international beauty companies need to take to ensure marketability in all areas?

One thing that health professionals agree on is that this pandemic will not be going away soon. At this early stage of vaccination, nothing has been clearly defined. So, in the long term, international beauty companies must focus on online viral strategies with their distinctive core values. Secondly, they must continue to build credibility. Consumers have begun to strengthen their online verification process even further as they cut offline consumption and moved to the web. At this time, you can no longer use tester products at in-person stores, so you have to explore new products and decide the purchase through reviews of various platforms and related content on YouTube, Instagram, TikTok and etc. Claims and praise that lack authenticity or supporting data have little to no impact in the COVID era. With a clear focus on both of these strategies, brands will continue to strengthen and progress their online communication.

In your opinion, what has been the biggest learning for the beauty industry over the course of the pandemic?

I’d like to point out the ‘diversity & flexibility’ within the beauty industry is what makes the difference. During the pandemic, business has suffered, particularly companies specialising in makeup products, in-person stores and limited exporting. With that in mind, if target audiences, product categories, distribution channels and exporting countries are diverse, it is much easier to cope with industrial, political, geographical and other uncertainties.

Adaptation to rapid change is also key. Companies that quickly detected and responded to changes in markets, during the early phase of the pandemic, either minimised damages or generated profits. While traditional conglomerates were busy trying to devise strategies, niche brands dominated the market through rapid changes.

What is your outlook on the beauty market, specifically K-beauty, in 2021?

As mentioned earlier, the importance of diversity and flexibility in the Korean cosmetics market will increase in the future and the safety and reliability of products will be emphasised. For the time being, companies will be on the testbed for quick response and change, and consumers will make sure they’ve thoroughly checked everything.

In addition to this, from 2020 Korea has introduced the world’s first regulation for “Customised Cosmetics”. Although it has not received much attention so far due to the pandemic, it will move people towards pursuing ‘one’s own product’, which ultimately is the aim of each and every consumer.

In the long run, the life span of traditional popular brands will be shortened and the launch of new niche brands with distinctive philosophy will accelerate further.

K-Beauty exports have continued to grow in 2020 and has once again broken its annual record. This is because K-Beauty is synonymous with “fast”, “new”, “changing” and “challenging” values based on current market conditions, and moreover, future values. Therefore, in 2021, even if COVID-20 comes, it will continue to create values that matches the fickle market. Like a variant of the virus.

Looking for the latest K-beauty ingredients? Check out these presentations from our K-Beauty Formulation Day