K-beauty chiefs head to São Paulo as Brazil exports surge tenfold

In alignment with President Lee Jae-myung's state visit to Brazil, K-beauty industry executives are moving to pioneer the South American market. Major CEOs of domestic beauty companies, including Lee Sang-mok, President of Amorepacific Holdings, Kush, CEO of APR, Chun Ju-hyuk, CEO of Guda Global, and Kim Seong-un, CEO of Silicon2, will participate in the 'Korea-Brazil Business Roundtable' held in São Paulo.

This event is co-hosted by the Ministry of Trade, Industry and Energy and the Brazilian Ministry of Development, Industry, Trade and Services. K-beauty companies have joined the list of the economic delegation alongside major groups such as Samsung, SK, and Hyundai Motor.

Major K-Beauty Company CEOs Included in Brazil Economic Delegation List

Brazil is the world's third-largest cosmetics market, following the United States and China. According to Euromonitor International, the Brazilian cosmetics market is expected to reach $34.1 billion this year.

As of last year, South Korea's cosmetics exports to Brazil stood at $54.3 million, ranking 32nd among 207 total export destinations. The growth trend is steep. Exports, which were $5.18 million in 2020, have increased more than 10-fold in just five years. As of the first half of this year, cosmetics exports from small and medium-sized enterprises to Central and South America increased by 131.9% compared to the previous year.

Favorable local conditions have also been established. Brazilian President Luiz Inácio Lula da Silva personally mentioned his affinity for Korean cosmetics last December. In February, the Ministry of Food and Drug Safety and the Brazilian Health Regulatory Agency signed a Memorandum of Understanding (MOU) on regulatory cooperation, establishing an institutional foundation to support exports.

Expanding Latin American Territory Centered on Brand-by-Brand Strategies

Building on a performance rally where cosmetics exports reached $7 billion (approximately 10.32 trillion won) in the first half of the year, K-beauty companies are moving to secure local distribution networks.

APR is expanding its B2B channel exports through 'Medicube.' Securities firms forecast that APR's second-quarter revenue will reach approximately 730 billion won, surpassing 1 trillion won in cumulative revenue for the first half of the year. Amorepacific's second-quarter revenue is also expected to increase by 8.45% year-on-year to 1.0899 trillion won.

Guda Global has begun placing its flagship brands, such as 'Beauty of Joseon,' 'SKIN1004,' and 'TIRTIR,' in Brazil's Sephora starting this month. Amorepacific is expanding the target markets for 'Laneige' from Chile and Colombia to Brazil and Peru. LG H&H is pursuing channel diversification, such as placing five major 'The Face Shop' products in Walmart in the United States.