[Click e-Stock] "K-Beauty's 'Third Golden Age'... Growth Spreads Beyond Finished Products to Ingredients and Packaging Stocks"

There is growing analysis that K-beauty is entering its "third golden age" as it expands its export markets, particularly in the United States and Europe, while diversifying both its product lineups and distribution channels. This positive growth dynamic, which previously centered on finished cosmetics and ODM (Original Development Manufacturing) companies, is now spreading to functional raw materials, ingredients, and cosmetic packaging firms as well.

Growth Research, an independent research firm, stated in an industry report on August 24 that the recent surge in K-beauty exports is no longer limited to select countries or specific product types, but is expanding across the entire industry.

According to the report, the value of South Korea's cosmetics exports in July reached an all-time high, increasing by 36% year-on-year. Growth in the U.S. and European markets was particularly noteworthy. Cumulative exports to the U.S. rose 39% year-on-year from January to July 2026, while exports to Europe jumped 65% over the same period. The export structure, which was previously centered on China, is rapidly diversifying toward North America and Europe.

The growth continued into August. Between August 1 and 10, the provisional value of cosmetics exports increased by 92.2% compared to the same period last year. Despite a high base effect from last year's strong export performance, the high growth rate indicates that overseas demand for K-beauty remains robust.

The range of exported items is also diversifying. Products are expanding from a previous focus on basic skincare to now include sun care, derma, and hair and body care. In particular, as the so-called "skinnification" trend—treating the scalp and hair in the same way as skin—spreads, exports of hair products are increasing rapidly.

During the first half of this year, exports of hair products rose by 30.6% year-on-year. Sun care is also evolving, as products move beyond simple UV protection toward becoming everyday skincare products, which in turn is driving up demand for functional ingredients and materials.

These changes are leading to improved business performance for companies supplying cosmetic raw materials and ingredients. Growth Research analyzed the performance of three local companies—J2K Bio, Sunjin Beauty Science, and NFC—and found that their combined sales in the second quarter of this year reached 66.1 billion won, an increase of 40.9% year-on-year. Combined operating profit for the same period totaled 9.4 billion won, up 62.1% compared to the previous year.

J2K Bio's growth was particularly pronounced. The company posted sales of 15.6 billion won and an operating profit of 2.7 billion won in the second quarter of this year. Compared to the same period last year, this marked increases of 83.5% in sales and 285.7% in operating profit. Increased demand for functional cosmetic ingredients and new materials is seen as the driver behind this improvement.

Cosmetic packaging companies are also emerging as beneficiaries of K-beauty's growth. Pumtech Korea recorded 116.8 billion won in consolidated sales and 21.7 billion won in operating profit for the second quarter of this year. For the first time, the company's quarterly operating profit surpassed 20 billion won.

K-beauty brands are expanding beyond online sales to establish a presence in major offline distribution networks in the United States and Europe, fueling greater demand for cosmetic packaging. As more brands enter global retail networks such as ULTA, Sephora, Target, Walmart, and Costco, demand for standardized cosmetic packaging and bulk orders is also increasing.

The growth model of the K-beauty industry is also notably evolving compared to the past. The first golden age was driven by the Korean Wave in China and the growth of online duty-free stores, while the second golden age was led by online platforms and indie brands primarily in the U.S. Now, the latest wave is characterized by broader export markets (including the U.S. and Europe), diversified products such as sun care, derma, and hair care, and the expansion of offline distribution networks—all contributing to more widespread industry growth.

Yonghee Han, a researcher at Growth Research, analyzed, "K-beauty has now entered a period of structural growth with simultaneous expansion in export markets, product categories, and distribution channels. It is important to pay attention to the fact that the benefits are spreading beyond finished products and ODM companies to also include those supplying ingredients, raw materials, and packaging."

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