South Korea's cosmetics industry has achieved a historic milestone, surpassing a $10 billion trade surplus for the first time. Once heavily reliant on China, the industry has diversified its export markets to include the United States, Europe, and the Middle East, marking a significant transformation. K-Beauty is now recognized as a leading surplus industry beyond just a trend in consumer goods.
On May 22, the Ministry of Food and Drug Safety reported that last year, the trade surplus for domestic cosmetics reached $10.1 billion, a 13.5% increase from the previous year, marking the first time it exceeded $10 billion. Cosmetics exports totaled $11.4 billion, the highest ever recorded, while imports slightly decreased to $1.29 billion. Cosmetics accounted for 12.9% of the total trade surplus of $78 billion.
Notably, the diversification of export markets has been significant. The United States has become the largest export destination for South Korean cosmetics, with exports reaching $2.2 billion, surpassing China, which recorded $2 billion. Although exports to China have declined, the growth in the U.S., Europe, and the Middle East has driven overall expansion. The number of export destinations increased from 172 to 202 countries, effectively broadening the global market reach.
Regionally, growth in Europe and the Middle East has been particularly pronounced. Exports to Poland surged by 115% year-on-year, elevating it to the ninth-largest export market, while the United Arab Emirates saw an increase of over 70%, ranking eighth. Industry experts suggest that K-Beauty is not merely a passing trend but has entered a phase of establishment in the expansive U.S. and European markets.
Production figures also reached record highs. Last year, domestic cosmetics production amounted to 17.9382 trillion won, a 2.3% increase from the previous year. LG Household & Health Care and Amorepacific maintained their positions as the top two producers, followed by Aekyung Industrial.
However, the ranking changes among smaller brands were more pronounced. APR jumped from 21st to 4th place, while Gudai Global and Binau also rapidly ascended the rankings. In the ODM sector, Cosmax and Korea Kolmar continued to dominate.
The government plans to support the growth of K-Beauty through regulatory reforms. The Ministry of Food and Drug Safety stated, "In line with the strengthening of safety evaluations in major countries like the U.S. and China, we will gradually implement domestic regulations and provide guidelines and consulting to help the industry respond effectively."
Additionally, a meeting of regulatory agency heads is scheduled for September to expand global cooperation. With the launch of halal certification support initiatives, K-Beauty is expected to further expand its presence in the Middle East and Islamic markets.
* This article has been translated by AI.
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