The Ministry of SMEs and Startups of South Korea announced that in the first quarter, cosmetic products led export growth, with significant contributions from SMEs, especially in the K-beauty sector, which has seen substantial sales increases on platforms like Amazon and strong performances from brands like Craver and Witch Factory.
During this period, S. Korea’s export value surged by 30% year-on-year to $1.55 billion. Also, China re-emerged as the nation’s largest export market, while markets such as the United States, Japan, and Vietnam diversified, contributing significantly to this growth.
A notable point is that the exports by large corporations in the cosmetics sector decreased by 16.4%. Consequently, the proportion of SMEs in total cosmetics exports increased significantly to 67.4%.
According to the Korea International Trade Association (KITA), the proportion of light industries such as cosmetics and instant noodles in Korea’s exports jumped from 6% in the late 2000s to 29.8% last year, the highest since 1993 (30%).
The popularity of Korean cosmetic products, also known as K-beauty, is also evident on Amazon, the largest e-commerce platform in the U.S. During the spring big sale period in March, sales of K-beauty products increased by more than 200% year-on-year.
As of the end of May, Anua’s ‘Heartleaf 77% Soothing Toner’ ranked second in Amazon’s skin and toner sales, while Mediheal’s ‘Madecassoside Blemish Pads’ and Tirtir’s ‘Milk Skin’ ranked seventh and eighth, respectively.
Other small and medium-sized K-beauty brands are also driving the industry’s growth with their significant performance increases.
Craver, which is preparing for an IPO, reported sales of 36.7 billion won ($26.6 million) in the first quarter from its ‘Skin1004′ brand, sold in over 90 countries. This represents a 216% increase year-on-year, with an operating profit of $7.2 million.
Witch Factory, with 59.6% of its total sales from overseas (as of the fourth quarter of last year), recorded sales of $22.5 million and an operating profit of $2.9 million in the first quarter, up 39.6% and 1.7% year-on-year, respectively.
Lee So-hyung, CEO of Craver, stated, “K-beauty is a field where Koreans excel, thanks to exceptional product quality, quick identification of market needs, and trendy sensibilities.” He added, “With globally competitive OEM companies like Cosmax and Kolmar Korea, as well as discerning consumers, the potential for future growth is immense.”
