[Weekend Money] K-Beauty Climbs Amazon Product Rankings... "Watch These Stocks"

Shinhan Investment Maintains "Overweight" Rating for Cosmetics Sector
APR and Kolmar Korea Selected as Top Picks
"Profit Improvements Expected to Stand Out"

Last month, the rankings of Korean indie beauty brand products rose in Amazon's cosmetics product rankings, prompting securities firms to highlight the need to pay attention to K-beauty-related stocks.

APR CES 2025 On-site Booth Photo. APR.

On July 4, Shinhan Investment Corp. maintained its "overweight" investment rating for the cosmetics sector and selected APR and Kolmar Korea as its top picks in the industry. Shinhan Investment Corp. set the target prices for APR and Kolmar Korea at 500,000 won and 130,000 won, respectively. Hyunjin Park, a researcher at Shinhan Investment Corp., said of these two companies, "They are expected to stand out due to rapid external growth and notable improvements in profits."

This assessment is based on the fact that, as of the end of last month, the rankings of Korean indie beauty brands rose simultaneously in key markets such as the United States, United Kingdom, and Germany on Amazon. Compared to July last year, the number of products that entered the top 100 in cosmetics rankings increased by more than 14 in basic skincare and by more than 2 in color cosmetics. Although the short-term sales boost from Amazon Prime Day, held from June 23 to 26, was a factor, the results are noteworthy. Compared to April and May, there was an increase of more than 15 products in basic skincare and more than 6 in color cosmetics.

Researcher Park noted, "Throughout the first half of the year, companies like APR and Amorepacific have steadily increased the number of products within the top 100, and Korean brands are also increasing their penetration in the hair and body care categories." Park added, "Among manufacturers, Cosmax is dominant, but Kolmar Korea is rapidly expanding its export brand coverage."

In particular, the changes in Amazon rankings for APR and Kolmar Korea, which have been selected as top picks, are especially significant. On Amazon in the United States, the number of APR's Medicube products increased from 6-7 in January this year to 16 as of the end of last month. The number of basic skincare products manufactured by Kolmar Korea newly entering the top 100 is also rising.

In addition, many cleanser, hair, and body products made by Cosmecca Korea are ranked on Amazon US, and Able C&C's BB cream is showing strength in the color cosmetics category. In hair and body care, APR's Medicube, Amorepacific's Mise en Scene, and LG Household & Health Care's Dr. Groot are performing well.

On Amazon in Europe, including the United Kingdom, Germany, and Italy, the number of APR's products in the top 100 remains at 5-7. Amorepacific's eye patches, sunscreens, and creams have also newly entered the top 100, and d'Alba Global is also maintaining its ranking.

Researcher Park stated, "The market share of Korean cosmetics in the US cosmetics market is estimated to be around 8%, and the online distribution structure, which was previously centered on Amazon, is expanding to channels such as Ulta, Sephora, and large supermarkets." Park emphasized, "Attention should be paid to the trend of growing export demand from the US to Europe and from basic skincare to personal care."

This content was produced with the assistance of AI translation services.