Amorepacific pledges to secure top three position in global premium skin care

Amorepacific has announced it will strengthen its business portfolio to rank among the global top three companies in the premium skin care sector. To accelerate growth, the South Korean beauty and health company is also increasing its share of overseas sales to 70%. 

The move is titled “Create New Beauty,” and will include new product development, a focus on key markets, and incorporating AI. 

“Over the past 80 years, Amorepacific has navigated turbulent times, driving the growth of Korea’s beauty industry and the globalization of K-beauty. We will continue to listen to our customers and present our vision of ‘New Beauty,’ introducing new forms and expressions of beauty befitting the times,” Kyungbae Suh, chairman of Amorepacific Group, said at the company’s anniversary celebration last week.

“As a ‘beauty creator’ that has pioneered and opened new realms of beauty, we will present a vision of beauty to the world that transcends age and time, rooted in the harmony of body and mind. Over the next decade, we will grow into a leading global beauty and wellness company with annual sales of KRW 15 trillion (US$10.8 billion).”

Amorepacific has announced five key strategic pillars for it to succeed in its long-term growth.Strategic pillars

Amorepacific has announced five key strategic pillars for it to succeed in its long-term growth plans. 

The company will focus on key markets, including South Korea, North America, Europe, India, the Middle East, China, and Japan. It will develop products suitable for local customer needs in separate regions, referring to this as its Everyone Global pillar. 

The company says that focusing on these key markets will also strengthen its global partnerships and accelerate expansion.

The second pillar, the Holistic strategy, will focus on strengthening its portfolio, focusing on dermatological products, nurturing skin care, and expanding into hair and makeup. Amorepacific aims to “expand into wellness and beauty devices to deliver an integrated beauty experience.”

Extending beyond skin and hair care, its Ageless pillar aims to use biotechnology to develop anti-aging products further, investing in its research department for structural improvement, damage prevention, and delayed aging.

AI First is the fourth pillar, highlighting the company’s commitment to transforming R&D, marketing, logistics, and sales. AI will speed up execution times, increase accuracy, and improve operations. 

Lastly, through its Amore Spark pillar, it aims to enhance collaboration-based innovation systems for product development. “By fostering a dynamic organizational culture, the company aims to respond swiftly to rapidly changing market conditions,” the company states. 

The company was the first to introduce ginseng in skin care.A founder of K-beauty

The company also says it pioneered Korean functional cosmetics, “introducing the world’s first products to incorporate ginseng and green tea and creating a new category in the market with the world’s first cushion foundation.”

The company was founded by Sungwhan Suh on September 5, 1945. In 1954, it opened the first cosmetic research lab in Korea, and in 1973, it launched the first-ever ginseng-inspired skin care product through its brand Sulwhasoo.

Earlier this year, Amorepacific released a study demonstrating ginseng compounds’ anti-aging and anti-inflammatory effects. Using bioconversion technology, the company can deliver its Ginosenomics — an anti-aging ingredient that delivers compound K found in ginseng, by 6,000 times.

“By inhibiting inflammatory responses and maintaining epidermal integrity, compound K can regulate the pace of aging and act as an anti-accelerated aging compound,” the company said.

Last year, it also found fermented ginseng to benefit the lymphatic system. This system is essential for preserving skin health as it helps eliminate waste, improves circulation, and supports the immune system.

South Korea is ranked as the second largest cosmetics exporter globally.K-beauty takes over

According to the Korea International Trade Association (KITA), South Korea ranked as the third-largest global cosmetics exporter in May this year. Two months later, it surpassed the US and rose into second position. 

KITA found that the country exported US$3.61 billion worth of beauty products from January to April, edging out the US with US$3.57 billion. The new ranking reflects K-beauty’s growing influence on the global personal care industry.

Despite the proposed 25% tariff on South Korean imports, Korean beauty brands are gaining ground in US brick-and-mortar retail. K-cosmetics are being offered at major discount retailers like Walmart and Costco. This signals K-beauty’s transition from a niche to an everyday basic.

Meanwhile, Korean skin care companies are increasingly incorporating AI, allowing them to cut their marketing research and production time by tenfold, innovate new ingredients, and speed up consumer feedback using emerging technology.

“AI in the beauty industry isn’t just about the future, it’s already happening now. AI is being applied across the entire value chain of the beauty industry. This includes new ingredient research, product concept development, creating marketing claims, social media content creation, and global sales strategy,” Kei Chun, CEO and co-founder of Trendier AI, previously told Personal Care Insights.