Cosmetics Recovery Boosts Spirits in Container Manufacturing Industry

1st Place Yeonwoo, Q2 Sales of 76.3 Billion KRW Expected to Increase 29% Year-on-Year
Pumtek Korea Anticipates 228 Billion KRW Sales This Year

Yeonwoo Headquarters Exterior. [Photo by Yeonwoo]

[Asia Economy Reporter Kim Jong-hwa] As the daily life of removing masks with vaccination approaches, the cosmetics industry is showing a clear recovery trend, and the upstream industry of cosmetics container manufacturing is also excited accordingly.

Cosmetics container manufacturers are expecting to break their record-high performance again in the second quarter following the first quarter. The cosmetics container manufacturing industry leads the cosmetics industry by about 2 to 3 months.

Yeonwoo, the No. 1 specialized cosmetics container manufacturer in Korea, recorded sales of 71 billion KRW in the first quarter and expects sales of 76.3 billion KRW in the second quarter. Compared to the same period last year, first-quarter sales increased by 14.6%, and second-quarter sales are expected to increase by 29.0%. Considering that Yeonwoo's average quarterly sales last year were around 62.8 billion KRW, this means breaking the quarterly record this year.

Pumtec Korea, a specialized cosmetics container assembly company that recorded sales of 196.8 billion KRW last year, is also recovering from stagnation and expects annual sales of 228 billion KRW this year.

The cosmetics market has recently seen a significant increase in consumption, including the color cosmetics sector, which was the most sluggish due to the normalization of mask-wearing. According to the 'April Industrial Activity Trends' announced by Statistics Korea, the growth rate of cosmetics consumption was the highest since COVID-19, and the consumption increase trend for May and June, which has not yet been announced, is expected to be even more pronounced.

Cosmetics container manufacturers' early anticipation of market recovery and securing raw materials also helped the sales recovery trend. Since plastics are the main raw material for cosmetics containers, they are sensitive to the prices of petrochemical products, which are the raw materials.

A Yeonwoo official explained, "We actively secured plastic raw materials from the end of last year, even at the cost of lowering profit margins." A Pumtec Korea official said, "The key to meeting product delivery deadlines depends on the production capacity of container manufacturers," adding, "By preparing in advance, we were relatively less affected by the rise in raw material prices."

This content was produced with the assistance of AI translation services.