Dermacosmetics?

I looked it up because I was wondering exactly what derma cosmetics are.

Looking at the article below from 2018...

In the end, it means cosmetics with added skin science...

The cosmetics people buy at pharmacies when traveling to Paris or London... I suppose that's what dermacosmetics are, right?

The cosmetics we use now, or cosmetics for soothing children's atopic dermatitis

It seems like everything applies...

Looking at the cosmetic or pharmaceutical derma-cosmetic brands below

I can see some brands that have established themselves to some extent now...

I brought this article here to look into it and use it as a reference.

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A dermocosmetic craze is sweeping the cosmetics market. 'Dermocosmetic' is a compound word combining 'dermatology' and 'cosmetic,' referring to products that incorporate the expertise of skin science into cosmetics.

Cosmeceutical, a compound word of Cosmetics and Pharmaceutical that became a hot topic following the separation of prescribing and dispensing of medicines in 2000 due to hospitals entering the cosmetics market, is now being included in the definition of Dermacosmetics, along with other hospital cosmetics, doctor cosmetics, and pharmaceutical company cosmetics. In particular, as the concept of Dermacosmetics is recognized as products with actual effects and related research accelerates, consumer demand is rising, and Dermacosmetics is emerging as a new alternative in the domestic cosmetics industry.

Why are 'Dermacosmetics' gaining attention?

Recently, the industry has been engaged in fierce competition, employing various survival strategies to capture the derma-cosmetics market. According to industry sources, the domestic derma-cosmetics market is showing a high annual growth rate of approximately 15%, and its market size reached about 500 billion won as of last year. According to Olive Young, a domestic health and beauty store, sales in the related category have increased by an average of about 30% annually. Consequently, an increasing number of brands are recently shifting their brand identity entirely to derma-cosmetics, and the number of newly launched products is also increasing explosively.

The growth of derma-cosmetics is analyzed to be driven by a shift in consumers' perceptions of cosmetics. As consumers' skin becomes more sensitive, an increasing number of people are seeking derma-cosmetics as a solution. The most significant strength lies in the differentiation of ingredients. While strategies vary by company, it is no exaggeration to say that they are going all-in on market penetration using "patented ingredients" created with superior technology. It is precisely because of this that the derma-cosmetics market is growing at an astonishing pace every year.

For example, it provides optimal skin care solutions for modern people who are frequently exposed to harmful environments such as fine dust. As consumers' skin becomes more sensitive, they are seeking derma cosmetics as a solution. A survey conducted by Amorepacific’s dermatological brand IOPE through IOPE Lab on 500 Korean women aged 20 to 39 revealed that 93% of respondents answered that their skin is sensitive. IOPE explains that while the degree of sensitivity varies, this can be interpreted as meaning that most women are concerned about sensitive skin.

Most women with sensitive skin focus on the symptoms themselves, such as dryness and itching, and reported that cosmetics frequently cause serious skin troubles. They cited the type, ingredients, and effectiveness of cosmetics as solutions to these issues. Consequently, there is a growing number of consumers taking proactive measures for sensitive skin that reacts acutely to external environments, regardless of skin type (dry, oily, normal, or combination); dermacosmetics are gaining popularity among consumers as a representative product for this purpose.

Amore, LG Household & Health Care, and Aekyung are also going all out.

Due to fierce competition in derma cosmetics, beauty companies are launching new brands or introducing differentiated services. Brands such as CNP Cosmetics and Gowoonsesang Cosmetics, which previously promoted cosmeceuticals, are changing their slogans to derma cosmetics, and various brands, including Amorepacific and LG Household & Health Care, are introducing products called derma cosmetics.


▲ Products from Amorepacific's medical beauty brand 'Aestura 365'. Source: Estra
Aestra, a brand under Amorepacific Group’s specialized medical beauty subsidiary, garnered attention as its sales and operating profit for the third quarter of last year rose by approximately 8.7% and 11.3%, respectively. This achievement came amidst a decline in sales and operating profit for Amorepacific due to China’s retaliation over the THAAD missile system.

Recently, it won the '2018 Brand of the Year Award' hosted by the Korea Consumer Forum. Estra manufactures and sells anti-aging and dermatological products, primarily through hospitals, clinics, and pharmacies. In addition to the Estra brand, it is striving to develop derma-cosmetic products, such as launching the Derma Repair line under the functional cosmetics brand 'IOPE'.

LG Household & Health Care is the company investing most aggressively in derma-cosmetics in Korea. It has even set the expansion of its derma-cosmetics business as a management goal for this year. In fact, LG Household & Health Care acquired Taeguk Pharmaceutical in 2017. Having acquired an 80% stake in Taeguk Pharmaceutical for 44.6 billion won, LG Household & Health Care additionally purchased the remaining 20% ​​stake and is focusing on developing derma-cosmetics based on the pharmaceutical patent technology held by Taeguk Pharmaceutical.


▲ LG Household & Health Care's derma brand 'Dermarift' product. Source: LG Household & Health Care
Accordingly, the company has also entered the market with its own derma-cosmetic brands, 'Carezone,' 'Dermarift,' and 'CNP Cosmetics.' Anticipating that the demand for hypoallergenic cosmetics will increase, the company is focusing its efforts on developing high-quality, low-irritation products. As LG Household & Health Care Vice Chairman Cha Seok-yong emphasized this by stating, "We will strengthen our next-generation derma-cosmetic brand portfolio," it appears the company will continue to invest heavily in expanding related businesses in the future.

Ak Kyung Industrial, which has recently emerged as a new competitor in the cosmetics industry, launched the derma-cosmetic brand 'Derma Esthe' last September through a collaboration with JW Pharmaceutical. Unlike existing derma cosmetics that emphasize gentle, low-irritation functions, this brand is characterized by its differentiation through the use of strong derma ingredients capable of providing immediate effects.


Aekyung Industrial launched the derma-cosmetic brand 'Dermaesté' last September through a collaboration with JW Pharmaceutical. Source: Aekyung Industrial
The product incorporates JW Pharmaceutical's patented CTP (Cytoplasmic Transduction Peptide) technology. According to the brand, CTP is a drug delivery technology developed to allow cell membrane-permeable substances to open cellular pathways and effectively deliver proteins or pharmaceuticals into cells; due to its excellent cell membrane permeability, it can produce effective results even with small amounts.

 

'Dermacosmetics' That the Pharmaceutical Industry Has Also Jumped In

As the number of consumers seeking safe and proven cosmetics increases, domestic pharmaceutical companies are also entering the dermacosmetics market.

Dongkook Pharmaceutical is the most active pharmaceutical company in the derma-cosmetic market. Dongkook Pharmaceutical launched the cosmetics brand 'Centellian 24' in 2015 and is credited with successfully establishing itself in the cosmetics market with its flagship product, 'Madeca Cream'. Madeca Cream is a product based on a plant extract called 'Centella Asiatica', which is the main ingredient of the wound healing agent Madecassol.


▲ Dongkook Pharmaceutical's 'Centellian24' Madeca Cream product. Source: Dongkook Pharmaceutical
This is a popular product that sold over 1 million units last year and generated approximately 50 billion won in revenue last year solely through home shopping and internet sales. This amounts to about 14.3% of Dongkook Pharmaceutical's total revenue of 350 billion won last year.

"Madeca Cream is well-received by customers due to its strong image as the wound-healing Madecasol ointment," said a Dongguk Pharmaceutical official. "Currently, sales are mainly conducted through home shopping, but steady growth is expected as distribution channels have recently expanded, including entry into E-Mart and LOHBS stores."

Donghwa Pharmaceutical, backed by 121 years of pharmaceutical technology, has also entered the market with its beauty brand, 'Hwalmyung'. The skincare brand 'Hwalmyung' consists of products made by carefully selecting five herbal ingredients (cinnamon, ginger, clove, tangerine peel, and nutmeg) from Hwalmyungsu, which was manufactured based on a secret royal court formula from the Joseon Dynasty.


▲ A product from Donghwa Pharmaceutical's beauty brand 'Hwalmyung'. Source: Donghwa Pharmaceutical
In particular, 'Hwalmyung Skin Elixir' is gaining popularity as a product containing toner, mist, serum, and oil in a single bottle. As the product is also being launched in the global market, Donghwa Pharmaceutical is putting effort into various aspects to differentiate the brand.

Ildong Pharmaceutical launched the cosmetics brand 'First Lab' based on over 70 years of pharmaceutical research achievements. The First Lab brand is demonstrating the strength of a pharmaceutical company entering the cosmetics industry, notably by winning the Grand Prize at the '2018 Korea Consumer Evaluation Best Brand'. Utilizing its probiotics technology, Ildong Pharmaceutical introduced masks, creams, serums, and eye creams.


▲ Products from Ildong Pharmaceutical's cosmetics brand 'First Lab'. Source: Ildong Pharmaceutical
In particular, the probiotic mask product demonstrated its strength by selling 7 million units after obtaining approval from the Ministry of Food and Drug Safety following numerous human clinical trials related to skin. Based on Ildong Pharmaceutical’s lactic acid bacteria development technology and clinical trial verification, it has strengths in treating adult acne, melasma, and improving pigmentation.

 

What is the future market outlook?

Experts predict that the market potential of derma cosmetics will increase further.

Yang Ji-hye, a researcher at Meritz Securities, analyzed, “High growth in derma cosmetics is clearly evident in the global cosmetics market due to changes in personalized consumption trends,” adding, “While the growth of the domestic cosmetics market stagnated last year, the derma cosmetics market grew by 26%, indicating there is significant room for future expansion.”

Insight Korea, a market research firm, predicted, “Based on the analysis of social big data, the distribution channels for derma cosmetics are expected to expand in diverse ways,” adding, “While medical institutions and pharmacies still account for a large share compared to the distribution channels of the overall cosmetics industry, this is expected to improve in the future.”

"Countless cosmetic brands are engaged in fierce competition in the domestic market. Therefore, product differentiation has become an essential condition for survival," said a beauty industry official. "The derma-cosmetics market has emerged as such an attractive market that the majority of brands are either targeting it or preparing to enter it."

Source: Economic Review (https://www.econovill.com)