Amorepacific sent a request for proposal to major advisory firms to select a lead manager for the sale of its health functional food factory in Anseong, Gyeonggi Province. The move is part of the company's capital efficiency strategy, which has included selling regional office buildings in major cities since last year. The company plans to consolidate health functional food production at its Osan factory.
Anseong Factory Has 38-Year History with GMP Certification
The Anseong factory, now 38 years old, originated from Taepyeongyang Pharmaceutical. Taepyeongyang Pharmaceutical completed the factory in 1989 in accordance with Good Manufacturing Practice, a global standard for pharmaceutical manufacturing and quality control. The company later introduced the beauty brand Aestra and completed a healthcare business site within the Anseong factory in 2014. Amorepacific acquired Taepyeongyang Pharmaceutical, which had changed its name to Aestra, in 2021, and the factory was incorporated as a healthcare and beauty production site. The facility produces Vital Beauty brand products, including Super Collagen, Meta Green, and Myeongjak-su.
The factory's annual production capacity exceeds 200 billion won. According to the electronic disclosure system, the Anseong factory's production capacity was 204.7 billion won last year, 220.4 billion won in 2024, and 260.1 billion won in 2023. Strategic investors pursuing expansion in the health functional food sector are expected to show interest, given the factory's GMP certification.
Amorepacific Plans Production Consolidation at Osan Factory
Amorepacific is pursuing upgrades at production facilities in Osan, Daejeon, and Jincheon, Chungcheongbuk-do, alongside the Anseong factory sale. The company is considering producing Vital Beauty brand products at its largest production facility, the Osan factory. A company official stated that health functional food production will be handled by the Osan factory. The Osan factory, now called Amore Beauty Park, was completed in 2012 and produces core products including Sulwhasoo and Laneige. The consolidation is interpreted as an effort to achieve economies of scale and improve management efficiency by centralizing health functional food production at the Osan factory.
Global Inner Beauty Market Projected to Reach $13.1 Billion by 2034
The company's proactive business restructuring, including the sale of the existing factory, is analyzed as a response to expectations that inner beauty will become the next competitive arena for K-beauty. According to global market research firm InsightAce, the global inner beauty market size is expected to grow from $4.2 billion (approximately 5.7 trillion won) last year to $13.1 billion (approximately 18 trillion won) by 2034. The average annual growth rate is approximately 11.9 percent. In line with this projection, Amorepacific is expanding its product lineup in collagen, body fat, and fatigue care categories.
Competition in the inner beauty market is showing signs of intensifying. Competitor APR recently signed a strategic memorandum of understanding with health functional food specialist NaturalWay and is pursuing joint development of inner beauty products. LG Household & Health Care is also expanding its product lineup centered on collagen and probiotics. An industry official stated that cosmetics-related companies' entry into the inner beauty sector will accelerate, as they can easily expand the market through existing customers.
FAQ
What did Amorepacific do regarding its Anseong factory?
Amorepacific sent a request for proposal to major advisory firms to select a lead manager for the sale of its health functional food factory in Anseong, Gyeonggi Province. The factory has a 38-year history and was completed in 1989 with Good Manufacturing Practice certification. Its annual production capacity was 204.7 billion won last year.
Why is Amorepacific selling the Anseong factory?
The sale is part of Amorepacific's capital efficiency strategy, which has included selling regional office buildings in major cities since last year. The company plans to consolidate health functional food production at its Osan factory to achieve economies of scale and improve management efficiency.
How large is the global inner beauty market expected to become?
According to global market research firm InsightAce, the global inner beauty market size is expected to grow from $4.2 billion last year to $13.1 billion by 2034, representing an average annual growth rate of approximately 11.9 percent.
