Wednesday, February 14, 2024

Overseas Market

After the end of COVID-19, the U.S. eye makeup market emerged

Formed $2.1 billion last year... K-Beauty, 3rd place in importing countries after I and China, increased by 26.1%

 

With the virtual end of COVID-19, attention is growing on the growth of the US eye makeup market.

 

The eye makeup market is regarded as an important type of cosmetics market. Demand for eye makeup products is driven by several factors, such as △ changing fashion trends, △ heightened awareness of beauty products, and △ the growth of the entertainment industry.

 

The recent report of KOTRA's US trade office in Washington is interesting, saying that the entire cosmetics market in the US is expected to continue to grow in the future, and the eye makeup market is expected to play an important role in driving this growth.

 

US eye makeup market trends

According to Statista, a US market research company, the North American cosmetics market accounts for 26% of the global market, forming the second largest market after Asia.

 

Statista said, “The US cosmetics market is expected to grow continuously from 2023 to 2027. The total revenue of the cosmetics industry in 2023 is estimated at about $ 20 billion, and will grow by 15.3% to about $ 25 billion by 2027.”

 

As a result of Statista's 2022 cosmetics sales survey by detailed item, it was found that △ eye makeup products were about $ 2.1 billion △ facial ($ 1.8 billion) △ lip ($ 740 million).

 

n particular, the eye makeup group can be classified as the item with the highest profit compared to other types. In the eye makeup market, △ Mascara ($ 900 million) has the highest sales △ Eyeliner ($ 500 million) △ Eyebrow makeup ($ 400 million) △ Eye shadow ($ 240 million) △ Eye combo ($ 50 million), etc. is in order of

 

Income trends

Last year, US eye cosmetics imports were about $900 million, an increase of about 8.2% compared to 2021. The number one importing country was Italy, with about $170 million, up 3.4% from the same period last year.

 

In second place is China, which recorded about $ 148 billion, but showed a negative growth rate of 17.2% compared to 2021. The third place was South Korea, which achieved $143 million and recorded a high growth rate of 26.1% compared to the previous year.

 

Countries with a higher growth rate than Korea were Japan and Taiwan, with growth rates of 31.8% and 33.8%, respectively.

 

Competitive trend

As the market size is large, the number of cosmetic companies, brands and products in the US is also diverse.

 

As a result of Statista's 2022 survey on awareness of each cosmetic company in the United States, the company with the highest consumer awareness score was L'Oreal, with about 85% consumer awareness. The second place is Cover Girl with 80%, followed by △ Revlon (79%) △ Avon (78%) △ Maybelline New York (74%).

 

Online sales are expected to increase from about 9% in 2017 to about 11% in 2025. As of July 2022, ulta.com was the most popular beauty retailer website in the US, with approximately 70 million monthly website visits. Sephora (sephora.com) and urbandecay (urbandecay.com) followed in second and third place, respectively.

 

As of 2021, Ulta Beauty recorded $8.6 billion and recorded the highest sales performance among chain stores. Bath & Body Works came in second with about $7 billion, and Sephora was third with about $6 billion.

 

According to the announcement of Amazon, a large online retailer, the eye makeup product with the highest sales performance on Amazon.com is Essense's Lash Princess. Second place is NYX's mechanical eyeliner and third place is Maybelline New York's Lashes Sensation, which sells for about $10.

 

Amazon.com's top five products are chosen by consumers for their common denominator: low prices and stylish packaging.

 

Tariff Rates and Regulations

According to the US International Trade Commission, HS Code 3304.20 applies the normal duty-free tax rate.

 

Currently, cosmetic manufacturers and packaging companies can register their factory facilities with the FDA through the Cosmetics Voluntary Registration Program (VCRP) of the US FDA, but the FDA has not made a compulsory request for this.

 

However, once the Cosmetics Modernization Act (MoCRA) goes into effect, all companies selling cosmetics in the United States will be required to register their factory facilities with the FDA and renew their registration information every two years. Facilities outside the continental United States will also be required to provide information about their agents in the United States.

 

Existing cosmetics facilities must register with the FDA within one year of the promulgation of the new law, and the registration deadline for new cosmetics facilities must be processed within 60 days of engaging in cosmetic processing and production. In addition, it is necessary to check safety, such as the mandatory recording of side effects, and the need to closely examine the mandatory labeling requirements has also increased significantly.

 

Implication

Along with this report, the KOTRA Washington Trade Center said, “Korean cosmetics companies must focus on producing eco-friendly and small-volume packaging products that are increasingly preferred by American consumers. It is premised that these efforts can meet the relevant demand and attract potential customers in the market,” he said. “Like other items, the eye makeup market is also focusing on sustainability trends. We need to pay more attention to various factors, from product packaging that considers environmental factors such as clean and ethical raw materials, production processes and recycling, to whether or not we use ingredients that are not harmful to coral reefs in resorts (reef-friendly).” Emphasized.

 

Along with this, it was suggested that a strategy to approach the market with products that pursue diversity so that they can be used regardless of age, skin color, or skin type in consideration of the American consumer layer composed of various races is also important.

 

In particular, a plan to improve marketing effectiveness by utilizing social media platforms as an important reference for predicting preferences and needs of US consumers and by implementing strategies such as collaborating with US power bloggers by utilizing the popularity of K-beauty. also presented

 

The report said, “Korean companies can consider localization strategies with ‘Made in America’ products to strengthen their competitiveness in the US market.” Because it makes purchasing decisions, local production can effectively cope with these factors,” he added.

 

In addition, eye makeup products are included in the third list of trade sanctions against China (effective in May 2019) under Article 301 of the Trade Act of the former Trump administration, and accordingly, an additional 25% tariff is imposed on the Chinese products. It is expected that K-beauty companies can become a reference factor in case of export competition issues for the item.

                                                                                  <Rearrangement Cosmorning Editor>