{
  "id": 837679,
  "title": "K-Beauty Exports Drive Record ODM Earnings",
  "url": "https://urgent.news/2026/08/14/k-beauty-exports-drive-record-odm-earnings",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-14T05:04:52.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=274839"
  },
  "original_language": "en",
  "account": "From August 1 to 10, domestic cosmetics exports hit $341 million, a staggering 92.2% increase compared to the same period last year. The export growth in regions outside Greater China expanded by an even more impressive 138.2%, highlighting the diversification of the K-beauty market. Cosmetics exports from small and midsize companies alone reached a record $5.07 billion in the first half of the year, making up more than 70% of total exports. This surge in exports resulted in record-breaking earnings for Original Design Manufacturing (ODM) companies within the cosmetics sector. Kolmar Korea reported a remarkable second quarter performance, recording consolidated sales of 861.3 billion won (approximately $609.68 million) and an operating profit of 110.3 billion won, marking the first time in its history that the company achieved a 100 billion won quarterly profit. Cosmax and Cosmecca Korea also surpassed market expectations, posting sales of 794.9 billion won and 794.9 billion won, respectively, with operating profits of 73.7 billion won and 32.1 billion won, a 39.3% increase year-on-year.\n\nThe surge in K-beauty exports can be attributed to the rapid growth of small and midsize and indie brands that do not possess their own manufacturing facilities. These brands have been expanding into international markets such as the U.S., Japan, and Europe, leading to a steady stream of orders for ODM companies. This has created a virtuous cycle, benefiting not only the brand companies and distributors but also the ODMs producing their products. Major distributors like APR and d’Alba Global have also reported strong results, with APR posting a record quarterly operating profit of 47.2 billion won and Silicon2, a K-beauty product distributor in over 170 countries, experiencing solid growth with revenue and operating profit rising by 51.8% and 59.0%, respectively.\n\nIndustry analysts attribute K-beauty's success to its departure from the previous China-centric business model. While China accounted for over 50% of K-beauty exports in 2021, that share dropped to 17.7% by the end of the previous year. Instead, emerging markets, including Europe, the Middle East, and Latin America, now account for 63.3% of exports, particularly in skincare products that have surged by 48.6% in the first half of the year. Analysts anticipate a structural turnaround for K-beauty, with several brokerages raising their target prices. For instance, LS Securities raised its target prices for Kolmar Korea and Cosmax to 200,000 won and 350,000 won, respectively. However, analysts also note that the performance of overseas subsidiaries varies by company. While Cosmax's U.S. subsidiary achieved its first quarterly profit as sales grew by 79%, Cosmecca Korea's U.S. subsidiary saw a decline in sales by 10%. To fully capitalize on continued K-beauty export growth, analysts suggest that improving the profitability of overseas production facilities and diversifying customer bases will be crucial.",
  "summary": "Korean cosmetics exports surged 92.2% in the first ten days of August, reaching $341 million, marking a 27.6% increase year-over-year. This surge in exports, which is being driven by small and midsize companies and indie brands lacking their own manufacturing facilities, has led to record-breaking earnings for Original Design Manufacturing (ODM) companies in the cosmetics sector. Kolmar Korea reported a consolidated sales figure of 861.3 billion won and an operating profit of 110.3 billion won in the second quarter, marking the first time since its foundation that it achieved 100 billion won in quarterly operating profit. Industry analysts attribute the growth to K-beauty's diversification away from its past China-centric business model, with exports to emerging markets, including Europe, the Middle East, and Latin America, rising to 63.3%.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}