Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
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Innovation trends and opportunities in South Korea
Hair Care Market
Sumit Chopra, Director of Research and Analysis
June, 2019
1
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Unique data, expert analysis and innovative solutions..
Leading Haircare market research, consumer research and consulting agency
1 Market Performance 2 Consumer Research 3 Innovation
Analysts in 96 markets 540,000 survey responses a year 2.1 million products tracked
3
GlobalData Proprietory TrendSights Frameowrk
The TrendSights trends that are driving growth in haircare category are pinpointed below
Innovation trends: GlobalData’s TrendSights framework
4
Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
5
Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
6
Global Cosmetics & Toiletries Industry 2018
The APAC C&T industry was the largest region in 2018 with a value of US$ 177.7bn
Western Eastern
Europe Europe
$98.4bn $29.7bn
16.6bn 9.3bn
America
Asia
$162.4bn 41bn Middle Pacific
East &
Africa $177.7bn 43.2bn
$26bn
7.5bn
Value
Volume
$494.2bn
117.7bn
Global
Source: GlobalData 2018 7
The global haircare market 2018
Haircare market value ($) and volume(Units) 2018
Western Eastern
Europe Europe
$14.2bn $4.7bn
2bn 1.3bn
America Asia
Middle Pacific
East &
$29.3bn Africa $29.3bn
6.2bn 6.2bn
$4.8bn 1.3bn
Value
Volume
$82.2bn
17.1bn
Global
Source: GlobalData 2018 8
South Korean haircare market Landscape 2018-2023
Haircare market value ($)
CAGR 2017-2022 (%)
Value M USD
+2.3%
1,331
1,311
1,288
1,261
1,229
1,190
2018 2019 2020 2021 2022 2023
Haircare market volume (Units)
CAGR 2017-2022 (%)
Volume M Units
+2.2% 38.5
39.2
37.7
36.7
35.7
34.8
2018 2019 2020 2021 2022 2023
Source: GlobalData 2018 9
About
Top GlobalData
three fastest-growing haircare segments 10
Market value 2018 ($) and CAGR 2018–23 (%)
$400m +2.4% $282m +1.9% $225m +1.8%
Shampoo Conditioner Hair colorants
Source: GlobalData 2018 10Innovation trends
The impact on health and wellbeing has the strongest influence on beauty and grooming purchases.
Haircare products, is the most influential on consumer purchasing decisions.
Targeting the silver
Natural Wave Being Unique Making it simple
segment
Wellbeing; Natural & Pure; Novel & Experiment; Sensory Fusion; Time Scarcity; Efficient & Aging population; Image
Personalized Guided Health; Experimentation; Experience Effective; Out-of-Home; Consciousness;
Experimentation Economy; Customization Simplicity; On-the-Go Customization
Source: GlobalData 2018 11Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
12Trend 1: Natural wave
Consumers are seeking for natural and organic products that are expected to
rise in prominence
What Why How
• Consumers in South • Haircare products that • Manufacturers are
Korea are seeking go beyond their basic therefore capitalizing
new, indulgent and beautifying function on this trend and
unusual products with to add “improvised offering products with
exotic ingredients care,“ such as special formulations
which gives them a products which go and exclusive
sense of luxury and past moisturizing and ingredients.
Natural Wave relaxing experience. therefore provides
natural humectant
properties, are
growing in popularity.
Source: GlobalData 2018 13Trend 1: Natural wave
Examples we like: using ingredients associated with natural image
Holika Holika Hair Rinsing Vinegar,
Face Shop, South Korea
Marketed under the Face Shop
brand name, a new Natural scalp
healer with Apple cider vinegar
helps in reducing the hair’s acidity Tonymoly Hair Mayo Nutrition
level. With a pH level of 3, it seals Pack, South Korea
the cuticle and reduces the
Tonymoly’s Haeyo Zayo Hair
alkalinity of the hair. As
Sleeping Pack is fortified with
consumers are becoming
nutrition enriched oils giving a
ingredient-aware, boycotting
lustrous shine and moisture to the
chemicals such as paraben and
hair after usage. It’s a combination of
surfactant. Thus replacing these
Mayo, Shea Butter, Macadamia Seed
with vinegar is a good idea for
Oil with a smell of sweet blend of
natural seeking consumers, as
vanilla and macadamia nuts. Helps in
well as curious ones. This cost
defeating the fizziness of the hair by
effective solution, used after
supplying s ultimate hydration.
conditioning repairs hair damaged
by salon products.
Source: GlobalData’s Product Launch Analytics
14Trend 2: Being unique
Consumers are likely to prefer a premium brand product occasionally in their
haircare routine
What Why How
• Experiential South • The rising disposable • The manufacturers
Korean women are on incomes of South have increasingly
the lookout for novel Korean consumers is focused on launching
solutions specifically empowering them to novel and innovative
in haircare, such as indulge more in products, such as a
Being Unique new textures and premium products hair masks which
color combinations, with specific comes in single-use
and those offering formulations. pouches which
experimental looks. facilitates
premiumization.
Source: GlobalData’s Product Launch Analytics
15Trend 2: Being unique
Examples we like: tailoring products based on consumer’s needs
Kocostar - Capsule Mask - Luster
Hair, South Korea
In South Korea, and the USA,
Firstmarket Co., Ltd. has launched
its Luster Hair Capsule Mask
under the Kocostar banner that is
claimed to contain essential oils
Yves Rocher - Rinsing Vinegar –
that help to restore the "natural
Raspberry, South Korea
shine and silkiness" to the hair.
Presented as a count of seven CJ Olive Young Co Ltd has introduced a
capsules within a resealable new Raspberry option of Rinsing Vinegar
plastic bag. Offering a hair mask marketed under the Yves Rocher brand
that also comes in a capsule name in South Korea, does not contain
format full of essential oils to help praben or silicone. This rinse-off hair
revive the hair is different to treatment is to be used after shampoo
standard products in the category and conditioner, and is traditional hair
in these countries. care method in France. It helps repair
and seal the hair cuticles, leaving hair
soft, smooth and radiant. It also helps to
reduce mineral build up. As the Korean
market has strategic value to global
luxury brands, it is widely viewed as the
fashion leader in the region.
Source: GlobalData’s Product Launch Analytics
16Trend 3: Make it simple
Time-scarce consumers demand quick to use, convenient, and simplified
haircare products
What Why How
• Rising urbanization • Multi-functional • This “more than one
levels are inspiring products can be used benefit” approach has
busy South Korean to treat a number of motivated
consumers to look for adverse issues in manufacturers to
simpler, time-saving haircare with less expand and innovate
beauty regimens. This attention, time and in the segment and
has led to an regular demands. introduce plethora of
Making it simple increased demand for haircare products
multi-functional with multiple
products. benefits.
Source: GlobalData’s Product Launch Analytics
17Trend 3: Make it simple
Examples we like: simplifying the haircare routine
Moltobene Clay Esthe EX Scalp
Essence, South Korea
Moltobene Clay Esthe EX Scalp
Essence is a lightweight essence or
Skinfood Peppermint Fresh Scalp
leave in fluid which helps dry as well
Relaxing Tonic, South Korea
as oily hair by providing hydration as
well as cleaning the scalp oil
Skinfood Peppermint Fresh Scalp
respectively, allowing easy-to-use
Relaxing Tonic, a scalp tonic helps in
and mess-free haircare even on-the-
cooling down the scalp and removes
go. Most of the consumers think that
the buildup from the oily scalp. Scalp
“on-the-go" products helps in being
spray such as these, are already
a time savior in the busy world of
popular in Eastern Asian countries
millenials, thus this offering may
such as Japan, but often targeted for
resonate well with those consumers
men. Following this trend, but
giving more attention to the
choosing women as a target audience
formulation of the beauty items they
is likely to attract many curious
are using as well as being time
beauty-attentive consumers who are
effective.
after new method of keeping up their
appearances without putting much
effort. Amore Pacific is the distributor
Source: GlobalData’s Product Launch Analytics
18Trend 4: Targeting the silver segment
South Korean still look to prevent the aging natural process
What Why How
• Scepticism about the • Pro-aging products • Haircare brands
effectiveness of that highlight or should therefore seek
antiaging products strengthen white or to engage consumers
have driven silver grey hair will resonate through offerings
consumers’ demand well with South which target specific
for haircare products Korean consumers hair issues such as
to manage the natural where it is also crucial thinning hair, dull hair,
aging process. for brands to and lack of hair
Targeting the silver persuade consumers volume which are
segment about the often related to aging.
effectiveness of anti-
aging items
Source: [1] GlobalData 2017 Q1 global consumer survey;
19Trend 4: Targeting the silver segment
Examples we like: embracing the aging natural process
SanDaWha Revitalizing Liposome Sulwhasoo Capsulized Ginseng
Lotion , South Korea Fortifying Serum, South korea
A light emulsion of 40 nature-derived This serum helps in giving a a
extracts and oils designed for aged noticeable boost in firmness and
skin, this lotion is a part of a beauty density of the skin helping in skin’s
regimen, promising to defeat the overall resilience. The final result
wrinkles and firming up the elasticity, gives a natural and diva like look
leaving a shining final effect. highlighting and improving the skin
by properly concealing it completely.
Erborian Pate au Ginseng Black Missha Time Revolution First
Concentrated Mask, South Korea Treatment Essence, South Korea
This little pot of black gold packed The "youth prolonging essence" is
with ginseng, one of Korean skin claimed to be a highly concentrated
care’s beloved ingredients for its blend of fermented ingredients
brightening helps in tackling anti- proven to fight the ten signs of aging
aging-related skin problem. The skin: like dulling, firmness, dryness,
product will entice those Asian elasticity, porosity, skin irritation and
consumers seeking out a daily coarse texture. This watery type
solution to treat aging skin. product helps in hydrating the skin
giving a smooth and brighten skin
tone.
Source: GlobalData’s Product Launch Analytics [1] Independent, 2016
20Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
21What is driving the change in consumer behavior?
A more proactive consumers’ attitude and behavior impact the dynamics of Haircare Industry.
‘Brands keeping pace to improve the social interaction with final consumers’
Pressure of social media
Holistic approach to
Image consciousness
beauty
Source: GlobalData 2018 22Selfie era driving change in beauty regimen
Consumers are taking a more holistic Social media is putting pressure on
approach to beauty and wellbeing hair appearance
A significant % of consumers
say they are concerned Consumers often claim social
about the impact of diet on media has made them more
their health and appearance self-conscious about
their appearance
Source: GlobalData 2018 23Shift from traditional haircare regime towards more
sophisticated haircare regime
Shampoo
Pre
Shampoo
Shampoo
After Style
Condition
Style Condition
Style
Pre style Serum
Mask
Source: GlobalData 2018 24Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
25Four key opportunities to explore within this space
K-haircare Customization
"Make it smart" Waterless solutions
Source: GlobalData 2018 26K-haircare is gaining prominence globally
K-beauty skincare is driving multi-step haircare -- Migrating from the skincare space, the South
Korean trend is very likely to gain ground among millennials, gen X, and female consumers
27K-Haircare Everyone Buzzing About
K-Beauty haircare is officially a thing - the South Korean trend is very likely to gain ground among
millennials, gen X, and female consumers
Biotin Damage Care Oil Mist
Etude House Silk
Scarf Hair
Treatment
Coco-Nuts Hot Oil Hair Mask Ryoe Korean Herbal Anti Hair Loss Damage Care Hair Treatment
28Consumers like being in control of products they use
Co-creating and DIY haircare solution is pushing the concept of customization a step further
29One size does NOT fit all in haircare
Co-creating and DIY haircare solution is pushing the concept of customization a step further
In South Korea, a new Night Aesthe
Pantene Pro-v Daytime Repair Essence is
Serum has recently been launched by
newly launched in Korea market. It is a
Korea P&G Co.,Ltd under the Pantene
kind of portable hair treatment that is
Pro-V Hair Spa banner. Stated as to
easy to take out. It is said that it can
"recover the damaged hair while
prevent hair snapping, supports enough
sleeping“. Nihon Kolmar Co., Ltd. is the
water and protects hair.
manufacturer.
Source: GlobalData 2018 30Tech advances create new innovation opportunities In a hyper-connected, technology-enabled society, consumers seamlessly integrate the use of multiple technologies into their lives and buying behavior. Source: GlobalData 2018 31
Using high-tech to provide tailored haircare solutions
Partnering smartphones with beauty tools Using high-tech for tailored haircare solutions
Kérastase, Withings and South Korea’s Scalp & Hai Polarizing TMS System-TN, South
Samsung electronics group present innovative Korea
technology for hair care
Hair expert diagnosis and management system
Provides information on hair quality and Precisely & Scientifically inspects the various scalp
brushing patterns and hair related conditions like alopecia
Measures the force applied to the hair when Provides hyper-personalized haircare solution
brushing
Data sent by Wi-Fi or Bluetooth to users phone
Offers personalized tips, and Kérastase product
recommendations
32Benefiting from instant results anywhere
Targeting new “on-the-go” function, companies offer portable packaging and waterless haircare
formulation to consumers heavily relying on time-saving products and services.
Source: GlobalData 2018 33Benefiting from instant results anywhere
Targeting time-poor consumers with "waterless" solutions
The Face Shop Jewel Therapy Cherry Blossom Clear Kochul Dun Namja - Style Fix Hair Wax - Airy
Hair Mist Wave; Natural Hard; Perfect Hold; Ultra Hard;
A dry shampoo with a combination of cherry Volume up
blossoms with five different gemstones helping in
removing the oily scalp smell. As dry shampoo Somang Cosmetics Co., Ltd. has recently launched a
became a global success , many manufacturers are new Style Fix Hair Wax which is offered in five types:
competing against each other to differentiate their Airy Wave, Volume up, Ultra Hard, Perfect Hold, and
products from each others. Natural Hard
Source: GlobalData 2018 34Index
1 About GlobalData
2 The South Korea Haircare Landscape
3 Innovation trends
4 Drivers
5 Opportunities for haircare brands
6 Looking ahead – where next for haircare?
35Looking ahead: where next for haircare?
Tech advancement
DNA-based haircare Athleisure hair
in haircare
Individualistic consumers Offering innovation and Developing hair products
seeking haircare advancement for more to suit consumers
products tailored to their effective results. leading active lifestyles.
DNA sample.
Source: GlobalData 2018 36Sumit Chopra
sumit.chopra@globaldata.com
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