In the Midst of Economic Recession, Ultra Low-Cost Cosmetics are Popular… Middle-aged Consumers are also Turning to ‘Value for Money Beauty’
As the economic recession prolongs, ‘rational consumption’ is emerging across various sectors. In the beauty market, in particular, interest in ‘ultra-low-cost cosmetics’ is spreading rapidly, creating a new consumer trend. This trend is not limited to just seeking cheap products but is evolving into a value-oriented consumption emphasizing practicality, even among those in their 30s and 40s who have more economic comfort.
Rapidly Growing Low-Cost Cosmetics Market
Daiso, a leader in the low-cost cosmetics market, achieved a massive 90% year-on-year increase in its beauty segment sales from January to September 2025. Notably, the proportion of 30s and 40s consumers in the total beauty sales has risen by 20% and 30% respectively, reflecting a shift from the typical 10s and 20s consumer base towards the middle-aged demographic.
This shift is interpreted not merely as seeking cheap products but as a ‘value-for-cost focused consumption’ that takes quality and composition into account. Middle-aged consumers are showing purchasing preferences that consider practicality, effectiveness, and refillability rather than simple price competition.
“The emphasis on rational consumption seems to have expanded to middle-aged consumers.”
![[Desperate News] Ultra-low-cost Cosmetics Frenzy... Even Affluent 30s and 40s are into ‘Value for Money Beauty’](https://img.ledesk.co.kr/titleimgm/2025/14336_file_1.webp?20251012024712)
Continuing Growth of the Low-Cost Cosmetic Market
This suggests that the definition of value-for-money has shifted from ‘low price only’ to ‘excellent value for price’. The demand for options that consider quality is increasing, focusing competition among brands in the low-cost cosmetics market on product innovation and segmentation.
Strategic Entry of Online Platforms
The strategic entry of the online fashion platform Musinsa is noteworthy. Musinsa has recently launched an ultra-low-cost cosmetics line and has boldly entered the beauty market. Within just two weeks after its launch, the transaction amount doubled, with skincare products experiencing a 14-fold increase, indicating an explosive response.
In addition to its existing user base centered on the 10s and 20s, Musinsa is attracting attention from other age groups who emphasize economic efficiency and practicality, gradually establishing its presence in the beauty sector. By capturing young appeal and practical messaging through its design and marketing strategies, Musinsa is rapidly expanding consumer touchpoints beyond just price.
Continued Strategic Entry of Online Platforms
Online platforms view low-cost cosmetics not merely as a supplementary category, but as a major growth engine and are targeting the market aggressively. This plays a key role in changing the platforms’ positioning and expanding consumer interaction points.
Strategic Collaboration of Major Distributors
The retail giant E-Mart is also paying attention to this trend. In collaboration with LG Household & Health Care, it has launched over 50 types of ultra-low-cost cosmetics under 9 brands, including ‘Glow Up by Beyond’. This strategy has proven successful, resulting in a 148% year-on-year increase in skincare sales.
Continued Strategic Collaboration of Major Distributors
The movement of major offline distributors to expand low-cost cosmetics in cooperation with existing brands does not stop at simply increasing supply. They are enhancing product variety and brand credibility through optimized display strategies and targeted marketing for the actual demand segment visiting the stores, aiming for long-term demand expansion.
Cosmetic Firms Bet on Brand Exclusive Lines
Recognizing that they cannot ignore the low-cost market, major cosmetic companies are actively responding. Amorepacific, in collaboration with Daiso, released ‘Mimo by Mamonde’, a dedicated brand, kickstarting a new distribution channel strategy. Following this, brands like Etude’s ‘Play101’ and VDL’s ‘Prep by VDL’ are expanding their dedicated low-cost lines.
Continued Cosmetic Firms Bet on Brand Exclusive Lines
Instead of simply offering existing products at discounted prices, companies are introducing newly planned products tailored to distribution channels and customer needs. This strategy aims to capture both product diversity and accessibility while avoiding the dilution of brand image.
Moving Beyond a Simple Trend to a Consumption Flow
Market insiders predict through various statistics that the ‘low-cost beauty’ trend will not merely stay as a short-term fad. Given the socially sensitive atmosphere towards price and the rising level of consciousness to rationally adjust one’s consumption, the low-cost cosmetics market is expected to grow steadily in the future.
“It is evidence that low-cost cosmetics are establishing themselves as a new consumption trend, not just a temporary trend.”
In the cosmetics industry, products from are increasingly drawing attention amidst changing consumer trends, being both stable and trustworthy. We will continue to strive to meet the needs of various generations, offering pragmatic choices to our customers.
