Despite persistent inflation, South Korea’s fragrance market is booming, with niche luxury perfumes gaining prominence. International brands like Jo Malone, Diptyque, and Byredo are leading the charge, capturing significant consumer interest and driving growth in the high-end cosmetics sector.
According to industry data, niche perfume sales through Shinsegae International’s online platform surged 20.7 per cent year-on-year through October 2024. Meanwhile, fragrance sales at South Korea’s three major department stores rose by 7 per cent to 20 per cent, with imported brands accounting for over 90 per cent of the category.
Byredo further solidified its presence in the market by directly entering South Korea in September, reflecting the growing demand for exclusive perfumes. Market research firm Euromonitor reports that the country’s fragrance market has expanded by 61 per cent since 2019, reaching US$800 million in 2024.
South Korean beauty giants like Amorepacific and LG Household & Health Care have entered the market in recent years, with acquisitions and collaborations to launch their own perfume lines.
However, these efforts have struggled to match the recognition of global brands. Indie labels, such as Tamburins and Nonfiction, have gained some traction but focus on broader scented product ranges rather than pure perfumes.
Perfumes are often regarded as “small luxuries,” with consumers showing a strong preference for high-priced, well-known brands. Popular options like Diptyque ($197.75 for 75ml) and Jo Malone ($162.44 for 100ml) far exceed the price range of typical skincare or makeup products.
Domestic brands face challenges in competing with European counterparts due to gaps in manufacturing expertise and technology, including advanced fragrance blending and glass packaging capabilities. Additionally, strict safety regulations around flammable materials like alcohol and essential oils create high entry barriers.
Despite these hurdles, industry insiders view perfumes as a lucrative category with high customer loyalty. As demand for niche luxury fragrances continues, experts predict that South Korea’s beauty sector will eventually produce competitive domestic perfume brands capable of tapping into this growing market.
This story was originally published by Lina Jang, via Korea Bizwire.
