Strong skin care demand helps South Korea post record quarter with solid exports
23 May 2024 --- South Korea’s Ministry of Food and Drug Safety says the cosmetics trade is in recovery, with a 6.4% increase year-over-year to US$8.5 billion. That’s second only to the US$9.2 billion posted in 2021.
The country is the fourth largest cosmetics exporter now while imports fell 1.5% to US$1.3 billion.
US exports shine
Exports showed global market diversification, with increases in the US, Europe and Japan, but exports to China decreased.
Exports to North American markets hit US$1.3 billion, making it the fifth largest cosmetics exporter to the US, according to the South Korean government.. This is the first time South Korea’s exports to the US surpassed the billion dollar mark.
For the second year, South Korea remained the top seller in Japan, accounting for 21.6% of imports with France, the runner-up, contributing 19.8%.
Meanwhile, South Korea’s exports increased by 39.9% to the Middle East, 39.2% to Oceania and 28.7% to Central and South America.
K-beauty wave
Personal Care Insights recently spoke with Kao about why consumers look to Japan and South Korea. “Even in cosmopolitan cities like Shanghai, consumers are more likely to look to Japan and South Korea for beauty inspiration than France or the US,” said Yayoi Inoue, director at the Kao Beauty Research & Creation Center.
US imports largely drove South Korea’s exports.“K-beauty has also gained interest in Japan, especially among Generation Z, mainly due to the influence of K-pop and South Korean dramas.”
According to the South Korean government, domestic cosmetics output increased by 6.8% to ₩14.51 trillion (US$10.4 billion). Notably, color cosmetics had the highest production increase of 28.2%.
Record first quarter
South Korea’s exports hit US$2.3 billion in the first quarter of the year, up 21.7% from the same period last year, according to the Korea Customs Service. This was primarily driven by skin care demand, which comprised 44.4% of all the exports.
The agency credits the increase to the growing interest in South Korean culture and the global appeal of K-beauty.
China was noted as the largest importer with US$610 million, the US at US$380 million, Japan at US$240 million and Vietnam at US$150 million. The first quarter record was set this quarter.
By Venya Patel
