Korean giants Kolmar, Cosmax expand sunscreen production in US, aiming to navigate FDA rules, minimize tariff risks
Amid the US government's tariff-fueled standoff with the rest of the world, some Americans appear to be stockpiling imported goods in anticipation of looming price hikes. Among the more unlikely items flying off the shelves are Korean-made sunscreen brands, which have quietly built a cult following in the United States.
According to a report last week by The Washington Post, Korean sunscreen ranks among the most hoarded consumer goods amid tariff fears, based on data gleaned from social media posts and online message boards.
Lauding Korean sunscreen for superior performance, the paper highlighted three standout qualities: reliable UV protection, lightweight textures and compatibility with layered cosmetics. The article even suggests Korean sunscreen formulations make their American counterparts seem about as good as scrambled eggs for preventing sun damage.
“Looming tariff measures on Korean imports appear to have nudged American consumers to stockpile Korean sunscreens, which are regarded as superior in both quality and affordability compared to their US counterparts,” said an industry official.
Another concern driving American consumers’ panic buying stems from Korean brands like Skin1004 and Beauty of Joseon pulling products from the US market earlier this year. The move was part of an effort to reformulate and therefore reduce long-term risks of noncompliance with US regulations.
In the US, sunscreen is classified by the Food and Drug Administration as an over-the-counter drug, making it subject to stricter regulations than cosmetics.
Yet, according to industry insiders, under the current tariff framework, which exempts imported pharmaceuticals from "reciprocal" tariff measures, not all Korean over-the-counter sun care products qualify for the exemption. Depending on the product type, some sunscreen products are still classified as cosmetics and remain subject to standard import tariffs.
“Even if additional tariffs are imposed, sales are unlikely to decline,” the official noted, pointing out that Korean products have established a reputation for quality and reliability among consumers.
In a report released by Samsung Securities, US-bound Korean cosmetics exports have showed continued growth, rising 46 percent on-year in 2023 and 52 percent the following year. Korean sun care products alone are projected to post a 43 percent on-year surge in US e-commerce sales this year, the report stated.
According to the US International Trade Commission last year, Korean cosmetics exports to the US reached $1.71 billion, a figure surpassing long-standing beauty powerhouse France, which recorded $1.26 billion in exports.
As demand for Korean sunscreens heats up, manufacturers are shifting into overdrive.
Kolmar Korea, an original design manufacturer responsible for producing the majority of Korean sunscreen products, plans to double its sunscreen and skin care production to 300 million units by ramping up operations at its US plants. It saw an 88 percent on-year surge in US-bound over-the-counter sunscreen products last year.
Another major Korean original design manufacturer, Cosmax projected that its sunscreen production at facilities in both Korea and the US will more than triple this year compared to last, as four times as many clients plan to enter the over-the-counter sunscreen market.
“With an integrated collaboration system between our US subsidiary and Korean headquarters, we are meeting growing client demand through a dedicated OTC division,” a Cosmax official said.
Meanwhile, Korea's No. 1 cosmetics company Amorepacific is weighing the possibility of building its own manufacturing facilities in the US. Recently, CEO Kim Seung-hwan told Bloomberg TV that the company plans to invest in logistics and modular manufacturing infrastructure in the United States within the next three to five years.
minmin@heraldcorp.com
