Korean beauty products regain popularity, lipstick sales hit record high

[Photo by Yonhap]

As remote work and mask mandates become a distant memory, there has been a surge in global demand for lipsticks, and Korean products, known for their diverse colors and excellent quality, are flying off the shelves not only in Asia but also in the United States and Europe.

South Korean makeup brand rom&nd made waves in Japan with its exceptional tint cosmetics, earning widespread recognition. Its “Juicy Lasting Tint” is acclaimed among Japanese beauty enthusiasts for its wide range of colors, vivid pigmentation, and cute packaging, and consistently ranks among the top-selling products on Japanese beauty platforms such as “LIPS” and “@cosme.” Tint refers to cosmetics applied on the lips, which induce coloration and are known for their long-lasting effect.

Thanks to this success, iFamilySC, the company behind rom&nd, saw a significant growth in revenue. Rom&nd’s annual sales for 2022 hit 85.3 billion won ($645 million), with exports accounting for over 60 percent of the sales. In the second quarter of this year, rom&nd’s sales in Japan jumped by 73 percent compared to a year ago.

Korean cosmetics, known for their affordability and exceptional product quality, have gained popularity not only in Japan and China but in North America and Europe as well. Factors contributing to the rising status and recognition of K-beauty include competitive pricing, the global popularity of K-pop, and enhanced online marketing efforts via YouTube and other social media platforms.

On Monday, the Korean Customs Service announced that exports of lip cosmetics, including lipstick, surged 63.5 percent year-on-year to reach an all-time high of $198 million in the first seven months of this year. In terms of tonnage, the shipments totaled 3,415 tons, which represents about 122 million pieces based on an assumed weight of 28g per item and accounting for 86 percent of the total export volume over the past year. Products in the shipments included 23 million lipsticks (649 tons) as well as 99 million tints, lip balms, and lip glosses (2,766 tons).

By export destination, the U.S. was the top destination with a 42.2 percent share, followed by Japan (15.1 percent), China (9.5 percent), Vietnam (7.8 percent), and France (3.9 percent) based on export value in 2023 to date. Among the top four export countries, excluding China, export amounts for the first seven months of this year have already exceeded the annual records for the U.S., Japan, and France in 2022.

New markets have also emerged, such as Luxembourg, with K-beauty paving the way. Since the spread of the Hallyu wave beyond a select few to encompass a broader fan base in 2018, South Korean cosmetics have been exported to over 100 countries worldwide each year. South Korean cosmetics were exported to 122 countries in 2022, setting a record and continue to break records, hitting 125 countries in the first seven months of 2023.

Customs authorities attribute the surge in exports of Korean lip cosmetics to the easing of social distancing measures following the Covid-19 pandemic, with the public resuming normal activities and removing their masks. The “Lipstick Effect,” a phenomenon in which consumers turn to small luxury purchases that provide high psychological satisfaction during economic downturns, also played a part in the surge.

Korean cosmetics manufacturers are also benefitting from the booming K-beauty trend. Korean OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) companies, including Kolmar Korea and Cosmax, reported their highest-ever quarterly sales and profits in the second quarter of this year. Cosmax saw a 67 percent increase in sales of lipstick products in the first seven months of this year compared to a year ago.