Canada emerging as new market for K-beauty

Canada emerging as new market for K-beauty

Korea’s cosmetics goods are expanding their presence in Canada and will likely grow further with the elimination of tariffs next year, the Korea Trade-Investment Promotion Agency (KOTRA) said Sunday.

According to KOTRA, the North American country imported $2.5 million worth of cosmetics from Korea last year, a 57.9 percent rise from four years earlier, and Korea was the seventh-largest cosmetics exporter to the country.

Canada imported $1.3 billion worth of cosmetics last year, marking a 7.7 percent average annual growth rate in last four years.

KOTRA said Korea’s cosmetics exports to Canada would increase further next year because the tariff on Korean cosmetics will be removed on the third anniversary of the Canada­-Korea Free Trade Agreement (CKFTA).

Canada imposes a 2.1 to 3.9 percent tariff on Korea’s cosmetics, so these goods are expected to gain price competitiveness from next year.

Meanwhile, KOTRA explained the popularity of Korea’s cosmetics was because of K-beauty fever worldwide.

According to KOTRA, Korean cosmetics brands are sold by large retailers in Canada, including Sephora, Hudson’s Bay, Walmart and Shoppers Drug Mart. Sephora has opened a K-beauty section in its online and offline malls.

KOTRA expects the Canadian cosmetics market will continue to grow because Canadian men are very interested in skin care.

But, KOTRA also said Korean firms should be aware that the Canadian government plans to strengthen regulations on cosmetics, food and pharmaceuticals in a few years.

“Regulations on cosmetics seem to be similar to existing ones, but Korean firms should keep checking the list of harmful substances that are banned by the Canadian government,” KOTRA said in the report.

Source: http://www.koreatimes.co.kr/www/news/biz/2016/11/123_219012.html


Leave a Reply

Your email address will not be published.