Korean cosmetics rise in price, follow food products’ footsteps

[Photo by Yonhap]

Following the footsteps of the food industry, the cosmetics sector in South Korea is making the decision to raise product prices.

According to sources on Tuesday, LG Household & Health Care will increase the prices of select items under its Sum, OHUI, Belif, and The Face Shop brands by an average of 4 percent to 5 percent starting on November 1.

For example, the price of Sum’s ‘Secret Essence EX’ (100 ml) will increase from 95,000 won ($70.50) to 100,000 won, or a 5.3 percent increase. OHUI’s ‘Prime Advancer 2-piece set’ will go from 140,000 won to 145,000 won, up 3.6 percent, while Belif’s ‘Aqua Balm Vita Water Cream’ (50 ml) will increase from 55,000 won to 58,000 won, up by 5.5 percent.

LG Household & Health Care said this price adjustment is necessary due to the continuous rise in the prices of key raw materials driven by global inflation and currency exchange challenges.

In a similar move, L’Oréal announced its intention to raise prices for its products, with an average increase of 5 percent set to take effect next month. This price hike will include products from Lancôme, Kiehl’s, Biotherm, and Yves Saint Laurent, among others.

Innisfree, a brand under Amorepacific, has been proactive in adjusting its prices in 2023, with an average increase of 19.3 percent across 109 product lines. This month, the price of the brand’s ‘Jeju Orchid Eye Cream’ (30 ml) increased from 27,000 won to 30,000 won, up 11.1 percent.

Meanwhile, Amorepacific’s luxury brand, Sulwhasoo, recently revamped its high-end line known as ‘Jinsul,’ which resulted in price increases for some items. The flagship product, Jinsul Cream (60 ml), saw a significant 10.6 percent price increase from 470,000 won to 520,000 won.

Industry observers believe that the price hike may be related to the cosmetic industry’s recent poor performance.

LG Household & Health Care reported a 6.6 percent decrease in its sales during the third quarter of this year, down to 1.74 trillion won, with operating profits down 32.4 percent to 128.5 billion won.

Amorepacific Group’s third-quarter sales were 963.3 billion won, and operating profits were 28.8 billion won, or decreases of 5.7 percent and 12.7 percent respectively compared to a year earlier.

Amorepacific Group has seven subsidiaries, including Amorepacific, Etude, and Innisfree.