Seoul: South Korea's biohealth industry is expected to grow nearly 21 percent this year on constant demand for cosmetics and medicines, a local think tank said Tuesday.

According to Yonhap News Agency, the global biohealth industry, which encompasses pharmaceuticals, medical devices, and cosmetics, is estimated to grow 6.2 percent to US$15.77 trillion this year from $14.85 trillion in 2025.

South Korea's biohealth industry, on the other hand, is projected to post 20.8 percent growth to $290 billion from $240 billion, it said in a report. KHIDI highlighted that the projected annual growth rate of 20.8 percent would mark the highest since 2019. The local industry is expected to grow further to $329 billion in 2027 and $357 billion in 2029, according to the institute.

KHIDI attributed the upbeat outlook to strong export performance in recent years. South Korea's biohealth exports surpassed $10 billion in 2016 and have continued to rise, exceeding $20 billion in 2020. This year, exports are projected to reach $30.4 billion, including $12.5 billion in cosmetics and $11.7 billion in pharmaceuticals.

"Biohealth exports in 2026 are expected to hit a new record high once again, following last year's achievement, driven by market diversification in the cosmetics industry, steady growth in the U.S. and European pharmaceutical markets, and a recovery in medical device exports," KHIDI said.