K-beauty posts record first-half exports, buoyed by Amazon and strong dollar

Shoppers browse K-beauty products at CJ Olive Young's Pasadena, California store on its opening day, May 29. [CJ Olive Young]

K-beauty set a new record for first-half exports this year, driven by steady growth in the United States and the emergence of Britain and other European markets as new growth engines. A more favorable export environment from the rising won-dollar exchange rate also contributed.

South Korea's cosmetics exports totaled $5.73 billion in the first six months of this year, up 25.1 percent from $4.58 billion in the same period last year, according to trade statistics released Monday by the Korea Customs Service. It is the highest first-half figure since the agency began tracking export data in 2000.

The United States was the top destination, with cosmetics exports reaching $1.11 billion. In June alone — when Amazon held its Prime Day sale — exports to the US jumped 45.6 percent year-on-year to $218 million. Britain posted the sharpest growth among major markets, with exports surging 130 percent year-on-year to $195 million.

Amazon's Prime Day, held June 23 through 26, is the platform's biggest annual discount event. Korean brands accounted for roughly 40 percent of the top 100 best-selling skincare products during the event. Medicube, in particular, ranked first in search terms across all Amazon categories.

China, once the dominant market, continued its decline. Cosmetics exports to China fell 5.1 percent year-on-year to $850 million in the first half of this year, marking a second consecutive year below the $1 billion mark after reaching $1.05 billion in the first half of 2024.

Trend in K-beauty first-half export figures

The strong export performance in the US and Europe is expected to show up in domestic cosmetics companies' second-quarter earnings. NH Investment Securities projected APR's second-quarter consolidated sales at 763 billion won ($514 million), up 133 percent year-on-year, with operating profit rising 114 percent to 181 billion won. APR's foreign exchange gains in the first quarter reached 1.73 billion won, more than four times the level a year earlier.

Amorepacific's second-quarter sales are forecast at 1.09 trillion won, up 8.45 percent year-on-year, with operating profit projected to rise 37.3 percent to 97.3 billion won. LG Household's second-quarter sales are estimated at 1.56 trillion won, down 2.55 percent year-on-year, though its operating profit is expected to climb 32.1 percent to 72.4 billion won.

Aekyung Industrial is accelerating a business restructuring following its acquisition of Taekwang Industrial. The company has set a target of raising cosmetics' share of total sales from the current 32 percent to 50 percent within three years, and plans to expand its push into the US market with its skincare lines Signiq and One Thing.

"China's share has declined after years of heavy reliance, but K-beauty's influence is growing in new markets such as the US and Britain," an industry official said. "The annual earnings outlook for major domestic beauty companies is also looking positive."

Medicube's flagship products on Amazon [APR]

siuu@heraldcorp.com