Consumers Scrutinizing Ingredients and Efficacy… Dermal Beauty Is on the Rise
Derma Approaches 20% Share of the Domestic Skincare Market
789.3 billion in 2020 → 1.5557 trillion in 2025
Specialty Boutiques Emerge in Retail Channels… Amorepacific and LG Corp. Also Strengthen Their Brands
[Edaily Reporter KYUNG GYEYOUNG ] In the domestic cosmetics (beauty) market, which has entered a mature phase, “derma beauty”—a category emphasizing ingredients and efficacy—is experiencing rapid growth. It has maintained an average annual growth rate in the double digits, and its share of the overall basic cosmetics (skincare) market has grown to nearly 20 percent.
“Dermabuty” is a portmanteau of “dermatology” and “beauty,” referring to products developed with the participation of medical and biotechnology experts in research and development (R&D) to improve skin function.
According to global market research firm Euromonitor on the 2nd, the domestic derma beauty market is valued at 1.5557 trillion won, nearly doubling from 789.3 billion won in 2020. The average annual growth rate from 2020 to 2025 is projected to reach 14.5%. During the same period, the global derma beauty market expanded by an average of 11.0% annually.
The “Advanced Derma” section currently on display at “Olive Young N Seongsu” in Seongdong-gu, Seoul. (Photo courtesy of CJ Corp.)Source: Euromonitor
The growth rate of derma beauty in the skincare sector—excluding sun care and hair care—is even faster. While the domestic skincare market grew at an average annual rate of 2.1% from 2020 to 2025, the derma beauty skincare market expanded at an average annual rate of 15.7%. In the domestic skincare market, estimated at 7.6534 trillion won last year, the derma-beauty segment reached 1.3079 trillion won, increasing its share to 17.1%. Whereas in 2020, only one in ten consumers chose derma-beauty products, now roughly two out of every ten use them.
Analysts attribute the growth of the derma-beauty market to Korean consumers, who meticulously scrutinize every single ingredient. According to the academic journal *Skin Research and Technology*, 56.8% of Korean women reported having “sensitive skin.” This rate is higher than the 45–50% seen in the U.S. and Europe, suggesting that consumers seeking cosmetics suitable for sensitive skin are turning to derma-beauty products—which are relatively less irritating—and spending more on them.
Distribution channels are also moving swiftly to capitalize on the rapidly growing derma beauty market. Olive Young, South Korea’s largest multi-brand retailer, partnered with a domestic pharmaceutical company last March to launch “Advanced Derma,” a dedicated display section for high-performance skincare products. HYUNDAIDEPARTMENTSTORECO.,LTD(069960)will open the first “Khode” concept store—a curated shop featuring products from over 60 derma beauty brands—at its Pangyo location on the 18th. This marks the first time in the retail industry that a specialty curated shop focused on derma beauty has been launched.
In the cosmetics industry, established giants such as AMOREPACIFIC CORPORATION and LG H&H, along with pharmaceutical companies, have staked their claims on quality. AMOREPACIFIC CORPORATION(090430), which began with creams exclusively for medical use, saw significant growth last year, with sales increasing by 40% on domestic e-commerce platforms and 30% at multi-brand stores. Following its entry into Japan in 2023 and the U.S. last year, the company is expanding its overseas footprint into Europe this year. LG H&H is reorganizing its dermocosmetic brand portfolio—including “CNP,” “Physiogel,” and “Dominus”—and targeting markets in Japan, Asia, and North America. DongKook Pharmaceutical Co.,Ltd.(086450)In addition to its existing “Centellian24” line, the company is also developing “Madeca Labs” in collaboration with dermatologists. The plan is to differentiate its products in terms of function and efficacy by leveraging the company’s pharmaceutical expertise.
A EuroMonitor representative noted, “The adoption of the derma concept across both mass-market and premium brands has driven overall growth in the derma beauty market, and reliable distribution channels such as Olive Young have also contributed to this growth.” The representative added, “As consumers place greater importance on clinical data and active ingredients, interest in derma beauty—which emphasizes skin health and proven efficacy—is expected to continue.”
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