As the global K-beauty trend surges, manufacturers of cosmetic packaging and suppliers of boxes and labels are experiencing significant gains. Both sectors reported record earnings in the second quarter, benefiting from strong 'spillover effects.'
According to the Financial Supervisory Service's electronic disclosure system, Pumtech Korea, a cosmetic packaging company, recorded sales of 116.8 billion won and an operating profit of 21.7 billion won in the second quarter. These figures represent increases of 10.8% and 11.4%, respectively, compared to the same period last year, marking the highest quarterly performance to date. This growth is attributed to rising demand driven by the global K-beauty craze and expanded supply from facility upgrades.
Yeonwoo also reported a successful turnaround, achieving an operating profit of 7 billion won in the second quarter, with sales rising by 28.9% to 91.1 billion won. The company's high export ratio, combined with the popularity of K-beauty, has contributed to its improved performance.
The paper industry, which produces specialty paper and industrial paper used in cosmetic packaging, is also reaping the benefits of the K-beauty boom.
Hansol Paper reported an operating profit of 50.8 billion won in the second quarter, a staggering increase of 162.8% year-on-year, with sales rising by 4.9% to 592.7 billion won. Growth in the industrial and specialty paper sectors has driven overall profitability improvements, with industrial paper sales reaching 152.8 billion won (up 10.1%) and specialty paper sales at 213.5 billion won (up 18.8%).
Korea Paper also saw its operating profit rise to 4.7 billion won, a 131.9% increase from the previous year, with sales climbing 14.8% to 220.4 billion won. The recovery in its core printing paper business, along with a return to profitability in its packaging division, has bolstered its performance.
Industry experts predict that the boom in K-beauty, which is expanding beyond Asia and North America into Europe, the Middle East, and South America, will continue to benefit the packaging and paper sectors. According to the Ministry of Trade, Industry and Energy, K-beauty exports reached a record high of $6.978 billion in the first half of this year. In July, exports grew by 37.8% year-on-year to $1.351 billion, driven by the expansion of offline distribution networks in the U.S. and Europe.
Han Yong-hee, a researcher at Growth Research, stated, "As K-beauty grows, the benefits for packaging companies are also evolving. The simultaneous expansion of export regions, distribution networks, and product lines is spreading throughout the K-beauty value chain, necessitating a broader focus on related companies."
* This article has been translated by AI.
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