The popularity of K Beauty is spreading globally, changing the landscape of the domestic cosmetics market. While traditional giants Amorepacific Corporation and LG H&H hold the top two spots, emerging powerhouses such as Goodai Global and APR are challenging their stronghold. Meanwhile, Aekyung Industrial, which had maintained third place, is seeing its position weaken.
According to industry sources on the 19th, the most notable change in the beauty market landscape has been Goodai Global’s rapid growth. According to investment banking sources, the company surpassed 1 trillion won in sales last year, entering the ‘1 trillion won club.’ Considering that it recorded sales of 140 billion won in 2023, this amounts to a staggering sevenfold increase within a year. The company quickly expanded through aggressive mergers and acquisitions.
Goodai Global is a cosmetics manufacturing corporation established by CEO Cheon Ju-hyuk in 2016. Initially, it was primarily responsible for distributing domestic cosmetics overseas, but it gained popularity in North America after acquiring ‘Beautiful Korean Women’ in 2019. However, its brand recognition was relatively low overseas compared to the domestic market, focusing instead on markets in the Americas, Europe, and Southeast Asia.
Goodai Global’s presence in the domestic market has increased since last year. The company acquired Craver Corporation, known for its ‘red cushion’ Tirtir and the color makeup brand Lakacosmetics, along with skincare brand Skin1004 and a cosmetics distribution platform. Last year, Goodai Global effectively monopolized the cosmetics M&A market.
Industry sources report that all three companies acquired last year recorded strong performances due to the K Beauty craze. In terms of sales, Tirtir recorded about 300 billion won, Craver Corporation about 300 billion won, and Lakacosmetics around 100 billion won, each growing by 2 to 3 times compared to the previous year. Goodai Global’s separate sales from Beautiful Korean Women also reached 300 billion won.
APR, which is listed on the KOSPI, recorded a preliminary consolidated performance of 722.8 billion won in sales, 122.7 billion won in operating profit, and 106.2 billion won in net profit last year. As APR sells both beauty devices and cosmetics, its performance improved significantly, especially with the popularity of its ‘Medicube’ brand in the North American market. Some products, such as the Zero Pore Pad, ranked first on Amazon. APR’s sales in the U.S. increased by 123.3% compared to the same period last year, and the company aims to join the 1 trillion won club this year.
In contrast, Aekyung Industrial, which has consistently ranked third, is currently stagnating. Aekyung Industrial’s sales last year were 679.1 billion won, which is only a 1.5% increase compared to the previous year. Notably, its operating profit decreased by 24.4% to 46.8 billion won from 61.9 billion won the previous year, indicating a slowdown in its growth. Compared to Goodai Global and APR, its performance overseas has been relatively poor, weakening its market position.
Thanks to the popularity of K Beauty, the existing cosmetics market structure has shifted from ‘two strong, one medium’ to ‘two strong, two medium.’ While Amorepacific Corporation and LG H&H, each having recorded sales of around 3.8 trillion won and 2.8 trillion won last year, still hold significant market shares, Goodai Global and APR are rapidly growing based on their overseas popularity, making it difficult for existing strong players to remain complacent.
The growth of emerging players such as Goodai Global and APR is attributed to the global popularity of K Beauty. Last year, K Beauty’s export value reached $10.2 billion, setting a record high. After surpassing $1 billion in 2012, it exceeded $10 billion for the first time in 12 years. In the U.S., it surpassed France to become the top country for imported cosmetics last year, and the same is true in Japan.
An industry insider noted, “The growth potential of Goodai Global and APR, based on their overseas popularity, is still sufficient,” adding that “as their overseas sales are currently primarily through online channels such as Amazon, they can expand their reach this year by entering offline markets.”