Cosmetics trade jumps despite economic slump

Published on 2012/08/25 | Source

By Yun Suh-young

Exports and imports of cosmetics and toiletries increased significantly last year from the previous year, despite the economic slump.

The Korea Food and Drug Administration (KFDA) said Friday that exports of South Korean cosmetics reached $805 million in 2011, up 34.8 percent from 2010.

Imports of cosmetics also jumped 16.2 percent to $989 million during the same period.

The balance of cosmetics trade recorded a $184 million deficit. However, the shortfall fell 47.3 percent from $349 million in 2008.

The biggest overseas market for South Korean cosmetics was China, which took up 31.7 percent of the nation's total cosmetics exports last year.

A total of $228.7 million worth of beauty products were shipped to the neighboring country. Japan and Hong Kong markets took up 16.9 percent and 12.8 percent, respectively.

Korea imported $257.4 million worth of U.S. cosmetics in 2011. The U.S. beat France for two consecutive years with its share taking up the largest portion of 28.1 percent.

Following close behind, France exported $254.7 million to Korea which accounted for 27.8 percent. Japan exported $187.9 million to Korea accounting for a 20.5 percent share.

The production of local cosmetics products increased by 6.2 percent last year from the previous year but was lower than the average growth of the past three years of 10 percent.

The product category that saw the biggest increase in production was odor-prevention products such as deodorants which increased by 243 percent in 2011 from 2010. Nail products were next with 11 percent.

"We believe the increase in deodorant products is due to the new addition of the category in 2010. The consumption of deodorants increased rapidly after the new items were introduced to the market", a KFDA official said.