Domestic cosmetics exports reached a record high in the first half of this year (January–June), and K-beauty companies are projected to post their highest-ever quarterly results in the second quarter (April–June). K-beauty companies are actively moving to tap emerging markets in Latin America on the back of robust sales.

According to industry sources on the 26th, Lee Sang-mok, President of Amorepacific Group, Kim Byung-hoon, CEO of APR, Chun Ju-hyuk, CEO of Gudai Global, and Kim Sung-woon, CEO of Silicontwo, will attend the “Korea–Brazil Business Roundtable” to be held in São Paulo on the 28th (local time) during President Lee Jae-myung’s visit to Brazil. At this roundtable, co-hosted by the Ministry of Trade, Industry and Energy and Brazil’s Ministry of Development, Industry, Trade and Services, K-beauty companies are listed on the attendee roster alongside major conglomerates such as Samsung, SK and Hyundai Motor.

Analysts say the large number of top executives from cosmetics companies joining the economic delegation reflects the fact that K-beauty has become a “star export product.” According to the Ministry of Food and Drug Safety, cosmetics exports in the first half of this year totaled USD 7.0 billion (around KRW 10.32 trillion), the highest figure on record. First-half cosmetics exports by small and medium-sized enterprises also reached USD 5.07 billion, up 30.7% year-on-year.

Buoyed by strong exports, major K-beauty companies are also expected to post record-high results in the second quarter. The securities industry projects APR’s second-quarter revenue at approximately KRW 730 billion, with its revenue in the first half of this year forecast to exceed KRW 1 trillion. Amorepacific’s second-quarter revenue is expected to reach KRW 1.0899 trillion, an 8.45% increase from a year earlier. LG Household & Health Care, which from this day has begun placing its road-shop brand “The Face Shop” in Walmart in the United States, is expected to see operating profit in the second quarter increase by around 30% year-on-year, signaling an improvement in profitability.

The industry expects that, leveraging this roundtable, K-beauty companies will begin full-scale efforts to penetrate local markets in Latin America. According to Korea Health Industry Statistics System (KHISS) data, Brazil’s cosmetics market is projected to reach USD 34 billion this year, ranking third globally after the United States (USD 118 billion) and China (USD 71 billion). In particular, exports of cosmetics by small and medium-sized enterprises to Latin America surged 131.9% in the first half of this year, indicating rapid growth. This is seen as a strategy to use Brazil as a bridgehead to secure new growth drivers.

Gudai Global has secured local distribution channels by placing core brands such as “Beauty of Joseon,” “SKIN1004,” and “Tirtir” in Sephora Brazil starting this month. APR is increasing exports through B2B (business-to-business) channels, led by its brand “MediCube.” Amorepacific is expanding the footprint of its “Laneige” brand to Chile and Colombia, and this year further to Brazil and Peru, as it steps up its efforts to target these markets.

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