The face mask sector is big business is South Korea, tieing into consumers’ demands for skin-conscious solutions.
P&C currently occupy 70% of the local market, and so the lucrative deal saw the leading face mask producer transfer management rights of 145.6 bn won (€110.7 mn) to VIG Partners. The innovative skin care brand is valued at approximately €131.3 mn.
As this area of skin care shows no signs of slowing down, market research company, Mintel, predicts that multifunctional prestige face masks that are formulated using innovative ingredients, designs and colours are set to drive the industry forward.
P&C first entered the Asian skin care market in 2008, when current president and founder, Sohn Chul-jae, saw the opportunity to market its facial pack sheets to cosmetics creators.
In 2016, the company’s sales hit 92 bn won (€69.9 mn), with an operating profit of 23.2 bn won (€17.6 mn). These figures demonstrate the opportunity for both parties. It also indicates the evolution of the facial sheet industry in recent years, with sales growing from 16.7 bn won (€12.7mn) in 2013.
Today, the company has the capacity to make around 1.8 billion pack sheets annually, and at present, sells the skin care favourite to more than 300 commercial buyers.
Following the acquisition, Sohn, which will retain the second largest number of shares in P&C, will work together with VIP Partners to leverage the brand’s positioning.
In April 2017, South Korea’s beauty and cosmetics industry was valued at over €11.4 bn. The country’s facial skin care area currently accounts for up to 51% of South Korea’s total market share, with a projected compound annual growth rate (CAGR) of 5.8%, raising sales from €5.7 bn in 2017 to €6.3 bn by 2020.
Euromonitor International puts mass face masks’ considerable growth down to “either consumption routine or new product development”. These product launches highlight the importance of producing cosmetics with unique features rather than the application of innovative technological enhancements.
While face mask growth is expected to continue throughout the forecast period as strong value sales increase, manufacturers will need to monitor packaging claims and ingredient listings to maintain appeal with chemical-conscious consumers.