Despite ginseng’s dominant share in the South Korean health supplement market, its current market share has seen a decline. (The image from KGC webpage)
SEOUL, Feb. 29 (Korea Bizwire) –The Korea Ginseng Corporation (KGC) is making a strategic entry into the U.S. vegan beauty market with the launch of its vegan beauty brand Lab 1899.
This move is part of the company’s broader initiative to diversify its portfolio and tap into the burgeoning global demand for vegan products.
Lab 1899 is a culmination of KGC’s 125 years of extensive research in red ginseng, offering a premium range of cosmetics that leverage the skin-enhancing properties of ginsenosides, the key active components found in ginseng.
The brand prides itself on its commitment to ethical practices, having secured EVE Vegan certification from France, which acknowledges products free from animal-derived ingredients and those not tested on animals. KGC claims that its products, enriched with ginsenosides, are effective in maintaining skin hydration and improving elasticity.
The U.S. represents the largest vegan consumer market globally, and there’s a growing trend among American consumers to opt for vegan products for their perceived health and ethical benefits.
Reflecting this trend, KGC chose to introduce Lab 1899′s “Red Ginseng Peptide Serum” through the U.S. crowdfunding site Indiegogo. The campaign, launched in mid-February, exceeded its funding goal by 392%, indicating strong consumer interest.
Originally spun off from Korea Tobacco & Ginseng Corporation (now KT&G) in 1999, KGC has been actively expanding its beauty business, including the ginseng-based cosmetic brand Donginbi launched in 2017.
Industry insiders note that as the consumption of edible ginseng products stagnates both domestically and internationally, KGC is seeking new growth avenues in the beauty sector.
Despite ginseng’s dominant share in the South Korean health supplement market, its current market share has seen a decline. KGC, which enjoys a near-monopoly status in South Korea, has been continuously striving to penetrate the global market by exporting over 250 products to around 40 countries.
However, the export landscape has been challenging, prompting KGC to bolster its cosmetics business, starting with Donginbi.
A KGC spokesperson highlighted the company’s dedicated efforts to broaden its product range, and its commitment to carving a niche in international markets.
Ashley Song (ashley@koreabizwire.com)
