2025 K Cosmetic February News Letter ◎ Beauty Trend Report 2025 ◎ In 2025, beauty devices and perfumes are expected to gain significant attention in the beauty market. Opensurvey conducted a mobile beauty-related survey on December 23 and 24, 2024, targeting 1,000 Korean women aged 15 to 59. The results were published in the "Beauty Trend Report 2025" on January 20, 2025. The report analyzed Korean female consumers' beauty information search behavior, product purchasing patterns, and the use of perfumes and skincare/aesthetic treatments. Today, beauty is synonymous with "self-care" and a means of achieving "aspirational beauty." The beauty industry is becoming broader and more intricate, covering not only skincare and makeup but also various aesthetic treatments, including hair and nail care. Furthermore, invisible elements such as fragrance have become a way for individuals to express their personal taste and uniqueness, making perfume an essential beauty item. The concept of beauty is expanding beyond "external beauty" to include "healthy beauty" and "self-care." While beauty in the past was often associated with cosmetics and grooming, it now encompasses broader aspects such as physical health, inner beauty, youthfulness, and individuality. Supporting this trend, Opensurvey's research found that beauty devices for home use were frequently mentioned as one of the most intriguing beauty products among consumers. Consumers also exhibited different skincare routines before and after their daily activities. In the morning, they focused on sun care, while in the evening, they prioritized functional products and eye care. On average, they used slightly more skincare products at night than in the morning. The survey reported that the average number of products used in the morning was 3.72, whereas the number increased to 4.05 in the evening. Skin toners and lotions/emulsions were used both in the morning and evening. However, sun care products were primarily used in the morning, while essences, serums, ampoules, and eye care creams were incorporated into nighttime routines. When purchasing perfume, the most important factor was whether the scent aligned with the consumer’s personal taste and aspirational image. A significant 67.9% of respondents cited "whether the scent matches my preference" as the top priority. Following this, 39.0% considered whether the scent aligned with their desired image, with half of these respondents (50.0%) being in their 30s. Additionally, 38.0% emphasized "long-lasting fragrance," ranking it as the third most important factor when selecting a perfume. Consumers in their 20s explore beauty information both online and offline, heavily influenced by personal SNS accounts when making purchase decisions. Offline, they are influenced by family, friends, and in-store experiences, while online, they rely on cosmetic brand/media-operated SNS accounts, cosmetic review apps/ websites, and internet communities/ forums. Those in their 30s frequently use online cafes and blogs, while consumers in their 40s and 50s rely more on TV home shopping, TV advertisements, and product placements (PPL) compared to younger age groups. Additionally, consumers in their 40s showed a higher tendency to be influenced by online newspapers and magazines (Cosmetic Mania News, January 22, 2025). ◎ Transcending the Limits of Time ◎ The Essence of Anti-Aging in 2025 The most significant feature of anti-aging in 2025 is its focus on fundamental transformation, rather than simply erasing traces of time. Achieving this requires immediate and effective regeneration of signs of aging or damage caused by external stimuli. By delivering deep hydration to quench dry skin, enriching it with restorative nutrients, and creating a robust protective barrier, the skin can be safeguarded against future damage, making long-lasting rejuvenation possible. Building Resilient Skin, Step by Step Strengthening the Skin's Self-Healing Power As temperatures drop, aging skin cells slow their regeneration process, failing to recover promptly. This leads to accumulated damage, decreased metabolism, reduced sebum production, and sluggish turnover. Coupled with rapid environmental changes, the skin's ability to retain moisture diminishes, causing the once-healthy skin barrier to collapse. In such conditions, enhancing the skin's natural self-healing power becomes crucial. It is imperative to enable the skin to repair itself, fostering resilience to maintain health even in adverse environments. Gradually Accumulating Elasticity The Power of Daily Massage One of the simplest yet most effective methods for improving skin elasticity is through massage during product application. If anti-aging products seem slow to yield results, consider changing how you apply them. Some may question whether massaging the skin could deliver noticeable effects, but science supports its benefits: massage activates the skin and stimulates collagen and elastin production. However, it is essential to avoid irritation. Before starting, wash your hands thoroughly, apply a generous layer of a gentle gel-type product, and then massage. Products formulated with ingredients that enhance elasticity and vitality are particularly effective for this method(Hyangjang No. 665). ◎ AI Big Data & Beauty Tech to Drive the Future of K-Beauty ◎ Following the global success of K-pop and K-dramas, K-beauty and K-food are now emerging as key players in the Hallyu (Korean Wave) phenomenon, capturing worldwide attention. However, for K-beauty—once propelled by the popularity of cushion foundations, BB creams, and sheet masks—to remain influential and innovative in the global beauty market, a new approach is required. Experts stress the importance of rethinking the foundation of K-beauty's sustainable growth to ensure long-term success. Global trend forecasting firm WGSN released a report titled "The Future of K-Beauty in 2025," emphasizing that "K-beauty’s impact on the global beauty industry is undeniable." The report states that South Korea is the third-largest beauty exporter in the world and the leading beauty supplier in emerging economies across Southeast Asia and Latin America. According to WGSN, the current trend in South Korea's beauty market is accelerating towards a more sustainable future, driven by consumers who are both tech-savvy and environmentally conscious. The report highlights that Korean consumers, recognized as leaders in science-backed beauty solutions, are highly knowledgeable about skincare and are driving advancements in precision formulations for sensitive areas and hair health. Furthermore, the ongoing fascination with color cosmetics is expected to lead to the rise of intentional, mood-based color products, allowing consumers to match shades to their personal style and emotions. Data: The Key Growth Driver for K-Beauty On November 11, 2023, a panel discussion titled "The Future of K-Beauty" was held at the 2023 Content Universe Korea event, featuring beauty industry leaders and experts. The discussion became a hot topic as panelists agreed that while K-beauty continues to gain global popularity through K-content, market conditions vary significantly by region, requiring tailored strategies. Kim Dong-kyun, CEO of Special One Makers, emphasized the need for country-specific strategies to diversify markets. Baek Ah-ram, CEO of Nuri House, highlighted the increasing importance of technology in responding to different market conditions, consumer preferences, and reactions in each country. As a solution for K-beauty’s continued growth, panelists pointed to "data" as a crucial factor. Since every consumer has unique skin tones, preferred colors, functional needs, and personal attributes, a vast amount of consumer demand data is needed to develop customized products. They also predicted that if AI-powered data-driven beauty services were to emerge, they could create a significant impact both domestically and internationally(Source: Cosmetic Mania News, February 27, 2024). ◎ K-Beauty Exports Surpass $10 Billion-Accelerating Global Expansion ◎ Interest in K-beauty is growing, particularly in the U.S., Japan, and Southeast Asia. Mid-sized and small companies are also strengthening their global competitiveness, leading to South Korea's cosmetics exports surpassing $10 billion for the first time in history. Currently, K-beauty enjoys immense popularity due to innovative products, trendy marketing strategies, and global consumer preferences. Additionally, the Korean beauty industry continues to advance, with numerous brands expanding their presence overseas. However, the U.S. is emerging as a key market to replace China, which has traditionally held a dominant share. Experts unanimously emphasize that Korean cosmetics can no longer compete solely on price but must focus on innovative ingredients, advanced technology, and product development tailored to local consumer needs. The $10 Billion Era of K-Beauty Exports China remains the largest destination for South Korea's cosmetics exports. From January to November 2024, cumulative exports to China amounted to $2.319 billion, accounting for 24.8% of total exports. Meanwhile, exports to the U.S. saw a significant increase, rising 44.1% compared to the total exports in 2023, reaching $1.756 billion. With an 18.7% market share, the U.S. has become South Korea’s second-largest cosmetics export market, closely trailing China. Japan also showed strong growth, with exports increasing 18.5% compared to 2023, reaching $955 million and capturing a 10.2% share, ranking third. Notably, the combined exports to the U.S. and Japan totaled $2.711 billion, surpassing China’s export figures. Need for Innovation, Technology, and Localization Strategies To maintain competitiveness in the global market, experts suggest that K-beauty must focus on: ✅ Product Innovation ✅ Global Expansion Strategies ✅ Sustainability Enhancement ✅ Utilizing Digital Marketing ✅ Enhancing Customer Experience ✅ Ensuring Quality Control & Certification ✅ Building Global Partnerships Above all, continuous research and development are essential for incorporating innovative ingredients and advanced technology. Quick adaptation to changing consumer demands and the rapid launch of customized products are crucial. Additionally, localized marketing and product development tailored to different cultural and consumer preferences are necessary. Establishing effective distribution channels and sales strategies for each market is also key. Furthermore, as consumer awareness of environmental issues grows, it is increasingly important to emphasize eco-friendly product development and ethical production processes. Sustainability is no longer just an option but a critical factor in the global beauty market(Cosmetic Mania News, December 26, 2024). The 2025 K Cosmetic February Newsletterwas published by K Cosmetic Inc. For more information, please visit our website at www.kcosmetic1.com. If you have any questions, feel free to contact us via email at kcosmetic13@gmail.com.

|