"Orders Are Pouring In..." K-Beauty Brands on Edge Amid Cosmetics Packaging Shortage

Cosmetics Exports Top $10 Billion Already This Year

Export Surge Creates Bottlenecks in Tube and Lid Supplies

Rising Raw Material Costs and Delivery Delays... A Double Burden for Small Brands

#A small domestic cosmetics brand was unable to sell sunscreen for two months earlier this year. It could not source tubes for the products in time. After finally securing the tubes, it ran into another problem: the caps for its cleansing foam. Disruptions to the supply of plastic raw materials amid the war in the Middle East hampered cap production. Since last month, a surge in cosmetics orders has once again delayed tube deliveries. “We thought things would be fine, but deliveries were delayed even in September and October,” a company representative said. “Small brands are facing a double whammy of higher costs and delivery delays.”

K-beauty exports are continuing to hit record highs, but small brands are facing mounting challenges. Supplies of packaging materials such as containers and caps are failing to keep pace with the growth in overseas orders. Raw material supply uncertainty, compounded by a shortage of containers, is making it difficult to deliver orders on time even after they have been secured.

A foreign buyer looks at cosmetics at the 2025 Seoul International Cosmetics & Beauty Industry Expo and International Health Industry Expo in Gangnam-gu, Seoul, on May 28, 2025. Photo by Kang Jinhyung

According to industry sources on the 16th, cosmetics brands were notified in March that the supply price of polyethylene (PE) raw materials would rise by 50%. Uncertainty over the supply of naphtha, a basic raw material used to make plastics such as PE and polypropylene (PP), has affected container manufacturing. At the same time, rising cosmetics orders have created bottlenecks in tube production and delivery, making it difficult to receive containers by the desired date even at a higher cost.

Manufacturers, too, are waiting for containers to arrive. “Supply problems remain for some containers, particularly for sun-care products,” an official at a domestic cosmetics contract development and manufacturing (ODM) company said. “Supply has largely returned to normal for other product categories, but for sun-care products, where orders are concentrated, it is difficult to secure materials and coordinate production schedules.”

Cosmetics are produced either by brands purchasing containers and supplying them to manufacturers, or by manufacturers handling everything from sourcing materials to delivering finished products. In either case, subsequent production schedules cannot be finalized until the containers arrive. “It is difficult to set a production schedule because we have not secured the quantities coming from material suppliers,” the official said. “We are scheduling production as quickly as possible as materials become available.”

The shortage of containers is due to a surge in demand for cosmetics made in Korea. According to the Ministry of Food and Drug Safety, cosmetics exports from January through September this year totaled $11.14 billion (approximately 14.9 trillion won), up 31% from the same period a year earlier. This was the highest figure ever recorded for the period and, in just nine months, nearly matched last year's full-year export total of $11.4 billion. Some forecast that K-beauty will usher in an era of annual exports worth 20 trillion won for the first time.

ODM companies are also increasing production to meet the influx of orders. Based on calculations using the two companies' semiannual reports, COSMAX's average monthly domestic production rose 48%, from approximately 43.71 million units to approximately 64.87 million. Kolmar Korea's actual average monthly domestic production increased from approximately 36.25 million units in 2024 to approximately 40.49 million last year and approximately 49.71 million in the first half of this year. Production in the first half of this year was approximately 37% higher than in 2024.

By contrast, expanding container supply in the short term is difficult. Molds must be developed to suit each product's shape and function, and technology is needed to maintain consistent quality in mass production. Since containers come into direct contact with their contents, any alternative materials must also be carefully evaluated.

Container manufacturers have begun expanding capacity. According to Hana Securities, Pum-Tech Korea is increasing supply by expanding its factory and establishing injection-molding production lines. Its tube-making affiliate, BU-KUK T&C, is also nearing completion of work to expand production capacity by 30% from the previous year.

However, it takes time for capacity expansions to translate into increased supply. Small brands that need to fill orders right away may miss sales opportunities if deliveries are delayed. “Uncertainty across the entire supply chain has increased,” an industry official said. “The burden could grow, particularly for small brands with limited sourcing capabilities, so the industry as a whole is keeping a close eye on supply chain conditions.”

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