25 Jun 2021
Posted in Consumer
Demand of haircare products in South Korea surged in 2020 due to ‘at-home’ treatments rise during COVID-19, says GlobalData
The South Korean haircare market is projected to grow from ₩1,372.9bn (US$1.2bn) in 2020 to ₩1,504.4bn (US$1.3bn) by 2025 at a compound annual growth rate (CAGR) of 1.8% over the 5-year period. Despite the COVID-19 outbreak and lockdown restrictions, the demand of haircare products increased in 2020 due to the rise in ‘at-home’ alternatives to salon treatments, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Haircare – Market Assessment and Forecasts to 2025’ reveals that the market is majorly driven by the growth of the salon hair care category, which is forecast to register the fastest value CAGR of 6.6% during 2020–2025. This is followed by the shampoo category, which is expected to record a CAGR of 1.7% during the same period.
Likitha Nalluri, Consumer Analyst at GlobalData, says: “The primary concern of the South Korean consumers while buying haircare products is health and safety, for which they are willing to pay slight premium. In return, the consumers expect better quality products with natural formulations, thus urging the manufacturers to focus on offering novel, innovative, and multifunctional products.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the South Korean haircare market in 2020, followed by e-retailers and convenience stores.
Amorepacific Corporation, LG Corp, and Aekyung Co., Ltd. were the top three companies in the South Korean haircare market by value in 2020, while Elastine and Mise-En-Scène were the leading brands.
Ms Nalluri concludes: “The growing experimental trend among South Korean consumers can pose a challenge to the market, urging manufactures to reformulate their products and focus on providing new textures and combinations to cater to the former’s changing needs.”