Cosmetics prices on the rise

Economy

Published: 31 Oct. 2023, 18:59 Updated: 31 Oct. 2023, 19:57

Cosmetics prices on the rise

LG Household & Health Care will increase prices for some of its cosmetic brands including The Face Shop, Su:m37, O Hui, and Belif. [YONHAP]

The price of beauty is only getting higher as large cosmetic companies increase prices for products.

LG Household & Health Care, a major cosmetics company, announced a 4 to 5 percent increase for some of its brands’ products including those from The Face Shop, Su:m37, O Hui, and Belif.

Starting tomorrow, prices for a 100-milliliter bottle of Su:m37’s “Secret Essence EX” will rise from 95,000 won to 100,000 won, an increase of 5.3 percent. A 50-milliliter tub of Belif’s “Aqua Bomb Vita Water Cream” will soon cost 58,000 won, up 5.5 percent from 55,000 won. “Raw material prices have continuously risen due to global inflation and exchange rate fluctuations, so some products’ prices were inevitably raised,” said a source from the company.

L'Oreal will also increase prices by an average of 5 percent for brands Lancome, Kiehl and Biotherm starting tomorrow.

Innisfree has already increased prices for 109 products by an average of 19.3 percent. The price for a 30-milliliter tub of “Jeju Orchid Eye Cream” rose from 27,000 won to 30,000 won, an increase of 11.1 percent, this month. Beauty tools were also subject to the price surge, including bath sponges, makeup pads, cotton swabs, and powder puffs.

Many cosmetics companies are trying to boost profits after a period of poor cosmetics sales due to recent drops in consumer confidence as well as economic downturn in China. LG Household & Health Care reported an “earnings surprise” (meaning its profits were below expectations) in its third quarter. The company received 128.5 billion won in operating profits, a 32.4 percent drop from last year's third-quarter report. It also saw a massive 88.2 percent drop in operating profits for the same time period, finishing at 8 billion won.

Cosmetics consumption, however, is becoming increasingly polarized. Premium cosmetics continue to sell well despite their high consumer price points. Amorepacific increased the prices of Sulwhasoo’s high-end product line “Jinseol” last month following its renewal. A 60-milliliter carton of Jinseol cream is now 520,000 won, up 10.6 percent from 470,000 won.

The cosmetics sector is just one industry in which high consumer prices are straining household budgets. Price tags for a multitude of food, beverage and household goods have also gotten steeper recently, including those of milk, beer and cleaning supplies. Other items, including fast food and hotel buffets, are slated to become more expensive ahead of the year-end peak season. The Grand Walkerhill Seoul hotel will up weekend prices from 159,000 won to 189,000 won per adult on Friday following its renewal of “The Buffet.” Parnas Hotel is also considering raising the prices of its buffets next month.

Food costs begin to bite as even burgers, beer grow pricier

Prices for milk — and other dairy-based processed goods, as a consequence — have also risen. Food and beverage company Binggrae upped the price of its iconic banana milk from 1,700 won to 1,800 won this month. Ice cream and mozzarella string cheese have also seen price hikes.

Even convenience store private-label milk products are set to become more expensive. Store chain GS25 will increase the prices of its plain milk and four types of flavored milk on Dec. 1.

Cleaning supplies aren't exempt. One liter of Downy’s “Laundry detergent blue” now sells for 20,300 won, up from 16,900 won, and the brand’s indoor drying detergent is now 2,1500 won per liter, up from 17,900 won. A two-pack of Yuhan bathroom-cleaning products costs 7,950 won, up from 9,200 won.

BY CHOI SUN-EUL, KIM JU-YEON [kim.juyeon2@joongang.co.kr]