South Korean cosmetics have gained popularity not only in neighboring Japan and China but also in North America and Europe, soaring in global demand. Factors contributing to this surge include the relative affordability of these products, outstanding quality, the global popularity of K-pop, and enhanced online marketing through platforms like YouTube and social networking services (SNS). As a result, the status and recognition of K-beauty have risen significantly compared to the past.
The Korea Customs Service announced on Sept. 4 that lip cosmetics, including lipstick, had achieved a record-high export performance this year, with exports totaling US$198 million (261.26 billion won) until July. The figure was up 63.5 percent compared to the same period last year. The export weight reached 3,415 tons, which is approximately equivalent to 122 million individual items assuming an average weight of 28g per item. This accounts for 86 percent of the total export quantity for the past year. By product type, lipsticks comprised 23 million items, or 649 tons, while tints, lip balms, and lip glosses reached 99 million items, or 2,766 tons
In terms of country-specific exports, the United States had the highest share, accounting for 42.2 percent of total exports this year. It was followed by Japan at 15.1 percent, China at 9.5 percent, Vietnam at 7.8 percent, and France at 3.9 percent. Among the top five export destinations, four countries, excluding China, saw their export figures for the first seven months of this year reach the highest ever recorded compared to the same period. For the United States, Japan, and France, their export figures until July had already surpassed their annual performances from the previous year.
There are also countries that are new markets, similar to Luxembourg. Since the spread of the Hallyu wave from being centered around some fans to encompassing society as a whole in 2018, South Korea’s cosmetics exports have reached over 100 countries worldwide every year. Furthermore, exports continued to grow to reach 125 countries by July this year, setting a new competitive record in the field after achieving a record high of exporting to 122 countries last year.
The Customs Office considers several factors as contributing to the strong performance of domestic lip cosmetics exports. First, it notes that demand, which had declined due to the COVID-19 pandemic, has rebounded as people have started to remove their masks during the endemic phase. Additionally, it points out the emergence of the “lipstick effect,” which refers to the tendency for people to indulge in small luxuries with relatively low cost and high psychological satisfaction during economic downturns.
The Customs Office also highlight that South Korea is the only major exporting country of lip cosmetics to experience a significant increase in exports, attributing this to the influence of the Hallyu Wave.
South Korea’s largest cosmetics company, AmorePacific, has reported a significant growth in lip balm sales since the second half of last year. From July last year to June this year, key lip balm products from the AmorePacific Group saw a 195 percent increase in sales in North America compared to the previous year. In particular, the brand “Hera,” which is endorsed by global K-pop star Jennie of Blackpink, witnessed a whopping 191 percent growth in sales for its flagship lip balm product “Hera Sensual Spicy Nude Balm” during the same period.
Furthermore, notable growth has been observed among mid-sized and small cosmetics companies in South Korea, such as Romand. Brands like Clio, Lacquer, Tirtir, and Beauty of Joseon, which are considered mid-sized to small companies in South Korea, have also gained popularity overseas. Clio, for instance, has expanded its presence in the United States, Japan, and Southeast Asia by featuring popular girl group IVE’s Ahn Yu-jin as its model.
The success of K-beauty has also benefited cosmetics manufacturing companies. Leading original equipment manufacturing (OEM) and original design manufacturing (ODM) companies in South Korea, such as Kolmar Korea and Cosmax, have reported strong growth in both revenue and operating profit in the second quarter of this year, achieving their best quarterly performances. Notably, Cosmax saw a remarkable 67 percent increase in lipstick product sales from January to July compared to the same period last year.