NH-Amundi Asset Management Publishes September ETF Report: "Spotlight on K-Beauty"

Cosmetics Reach Record Cumulative Exports from January to August
Diversification Centered on the US and Europe

NH-Amundi Asset Management announced on September 3 that it has published the September edition of its 'HANARO ETF Monthly Report,' highlighting how K-beauty is setting record-high export performances while market attention remains focused on semiconductors.

NH-Amundi Asset Management identified cosmetics as an industry standing out in export data, even as the market's gaze remains fixed on semiconductors. Last month, market interest was centered on semiconductors and artificial intelligence. On August 26 (local time), Nvidia posted second-quarter revenue of $96.22 billion, marking a record for the 13th consecutive quarter. As a result, the persistence of AI-related investments quenched much of the market's skepticism and heightened expectations across related sectors.

Meanwhile, exports in the cosmetics sector have hit unprecedented levels. The export value of cosmetics between January and August this year reached $7.9 billion, a 29% increase from $6.1 billion in the same period last year, breaking previous records. This growth was mainly driven by rising export figures to the United States and Europe.

The share of the Greater China region (China, Hong Kong, Taiwan), which once accounted for nearly half of cosmetics exports, has declined to 21%. In contrast, exports to Europe and the United States increased by 69% and 39% respectively compared to the same period last year. The United States overtook China last year to become the largest export market and has continued to show strong growth, while sales in Europe have surged, particularly in Poland, the UK, and the Netherlands. NH-Amundi Asset Management assessed that diversification of export destinations has created a structure where growth in one market can offset slowdowns in another.

The drivers of this growth have also broadened. In the early stages, small indie brands such as Medicube, d'Alba, and Beauty of Joseon led export growth. However, this year, major brands like Amorepacific's Illiyoon and COSRX have also seen their sales expand. Distribution channels—which once focused primarily on online platforms like Amazon—are now expanding to offline outlets such as Ulta and Sephora, the largest beauty specialty retailers in the United States. This trend of brands proven online moving into offline stores signals that K-beauty is structurally taking root in local markets.

As a way to invest in the domestic cosmetics value chain and aesthetic medicine companies, the company highlighted the 'HANARO K-Beauty' exchange-traded fund (ETF). This ETF includes cosmetics companies such as APR, Amorepacific, LG Household & Health Care, and Korea Kolmar, alongside aesthetic medicine-related firms like PharmaResearch and Hugel.

Kim Seungcheol, Head of the ETF Investment Division at NH-Amundi Asset Management, stated, "K-beauty is demonstrating global growth with record-high export performance, and its diversified expansion—centered on the US and Europe—supports greater growth sustainability. The K-beauty sector is noteworthy for both investors seeking long-term growth opportunities and those looking to balance a portfolio heavily weighted toward semiconductors."

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