As inbound foreign tourists' shopping routes expand beyond Olive Young and duty-free shops to pharmacies, pharmaceutical companies are cultivating pharmacies as a premium dermacosmetic distribution channel. Drugmakers are ramping up a "two-track strategy," growing mass-market brands through Olive Young, Daiso, and online malls while supplying pharmacies with exclusive products that emphasize ingredients and functionality.
Foreign tourists' domestic card spending reached 2.1222 trillion won in May this year, surpassing 2 trillion won for the first time ever, according to an analysis of foreign card spending big data from the Korea Tourism Data Lab conducted by the Korea Tourism Organization and released on the 18th. In particular, the growth rate of pharmacy spending was 206.1% year-on-year, the highest among major spending categories. Skincare and massage followed at 154%, and dermatology at 86%.
The growth of the medical tourism market is also supporting this expansion in pharmacy spending. Foreigners' spending on domestic medical tourism grew tenfold in five years, from 56.2 billion won in 2020 to 561.8 billion won last year. The share of pharmacies in total medical spending transactions also rose from 38.24% in 2021 to 59.11% last year, overtaking dermatology to claim the largest share. This is interpreted as reflecting increased demand for purchasing "aftercare" products at pharmacies, which help soothe skin and restore the skin barrier following dermatological procedures.
In response, pharmaceutical companies are entering the market on the strength of ingredient technology accumulated through drug research and development, along with pharmacy distribution networks. They are broadening consumer contact points through Olive Young, Daiso, and official online malls, while highlighting functionality and expertise at pharmacies.
Dongkook Pharmaceutical this month opened "Pharmacie Beauty Solution," a beauty-product-specialized space, at more than 200 pharmacies nationwide. A key feature is that it places high-functional products from pharmaceutical and dermatology-based brands in one location, including cell care products, regenerative creams, and functional shampoos that relieve hair loss symptoms. After establishing a foothold in the general cosmetics distribution market through "Centellian24," the company launched a separate pharmacy-exclusive functional cosmetics brand, "Madeca Pharmacia," last year, strengthening its pharmacy consultation channel. "Consumer interest in beauty products sold at pharmacies based on ingredients and functionality is rising," a Dongkook Pharmaceutical official said. "We selected high-functional products and set up a separate skincare space inside the pharmacy."
Daewoong Pharmaceutical is also growing its dermacosmetic brand "Easydew" on the strength of "DW-EGF," a human-identical epidermal growth factor it developed independently. It recently released three aftercare products that help restore the damaged skin barrier following dermatological care or cosmetic procedures. The strategy is to target the post-procedure care market forming around hospitals, clinics, and pharmacies through a product line emphasizing skin soothing and regeneration.
Hanmi Science is simultaneously expanding brands targeting the general distribution and pharmacy markets. After launching the derma brand "Adesse" this year to target general consumer distribution channels such as Olive Young, it expanded the product line of "Procam," a pharmacy-exclusive derma brand, this month. The move aims to secure both mass appeal and expertise by differentiating brand and product composition by sales channel.
As the pharmacy cosmetics market grows rapidly, moves to systematize related research and pharmacist education are also emerging. The preparatory committee for the establishment of the Korean Society of Pharmacy Cosmetics recently held an inaugural meeting and began full-scale activities. The society plans to pursue research on pharmacy cosmetics ingredients, expert education for pharmacists, and the hosting of academic conferences.
