As Korean beauty products gain immense popularity worldwide, pharmaceutical and biotechnology corporations developing new drugs have also entered this market in succession. Cosmetics and beauty medical devices have emerged as cash cows and new growth engines for pharmaceutical and biotechnology corporations, securing the funding necessary for drug development.
According to the industry on the 18th, domestic pharmaceutical and biotechnology corporations including T&R Biofab, Shaperon, SLS Bio, and GFC Life Science have successively declared their entry into the cosmetics and medical device businesses.
T&R Biofab signed supply contracts for four beauty products, including the 'Weekly Spa Kit,' with the U.S. beauty brand StarLab Holdings earlier this month. It also announced plans to launch basic cosmetics products in the U.S. market in October.
T&R Biofab is a regenerative medicine-focused company that creates biological tissues by stacking cells with a 3D bioprinter. It initiated its entry into new businesses by acquiring the cosmetics original equipment manufacturer Blisspack last year. The company is targeting product placement in major U.S. cosmetics distributors, including Ulta Beauty and Sephora.
Shaperon was established in 2008 as an on-campus venture by Professor Seong Seung-yong of Seoul National University's College of Medicine and is developing several new drug candidates, including the atopic dermatitis treatment candidate 'Nugel.' The company also plans to develop and launch cosmetics that improve inflammatory aging based on immunocomplex inhibition technology.
Seong Seung-yong, the CEO of Shaperon, noted, 'Micro-inflammation occurring in sweat glands and sebaceous glands due to air pollution or changes in dietary habits is a factor that causes wrinkles and skin aging,' adding, 'Demand for functional products that can address inflammatory aging is expected to increase.'
To more actively enter the cosmetics market, Shaperon recently recruited Vice President Kim Do-sun, formerly of GC Biopharma, and Executive Director Kim In-chae, previously of LG H&H. Vice President Kim will oversee global finance and business diversification strategies, while Executive Director Kim plans to lead brand strategy and the expansion of distribution for immune-based cosmetics.
SLS Bio, a pharmaceutical quality control and testing firm, also officially announced its entry into the cosmetics testing market in June. With the cosmetics market growing, it has determined that the demand for inspections of imported and exported cosmetics is also increasing. The company aims to achieve a 10% market share within three years by initially focusing on high-value cosmetics testing such as skin toxicity tests.
Lee Young-tae, CEO of SLS Bio, stated, 'The company has secured market dominance in the pharmaceutical testing field, which can also be applied to cosmetics and food testing, allowing us to enter this market without excessive investment.'
GFC Life Science, a bio raw material production company, supplies over 1,000 types of plant-based ingredients to domestic and international cosmetics brands and reported plans to expand its business scope into beauty medical devices based on this foundation.
Pharmaceutical and biotechnology corporations are all planning to establish a virtuous cycle structure that allows them to grow the cosmetics and beauty medical device businesses as stable revenue sources, reinvesting in biotechnological research and new drug development. The market outlook is positive.
According to Samil, the global anti-aging market, led by pharmaceuticals, medical devices, and cosmetics businesses, is expected to grow from $1.9774 trillion in 2022 to $2.8062 trillion by 2029. The compound annual growth rate (CAGR) is estimated at 11.5%.
Samil assessed, 'The K-beauty industry is rapidly evolving into a technology-based composite industry that encompasses not only cosmetics but also beauty medical devices, injectables, and home care devices.' As global aging increases interest in anti-aging, the beauty medical devices and injectables market is experiencing explosive growth.