K-beauty giants pivot beyond China as South Korea’s leading cosmetic firms reshape their global strategies to reduce regional risk. Amorepacific and LG Household & Health Care both released first-quarter earnings this week, offering contrasting pictures of global adaptation. Amorepacific reported a strong performance, driven by sales in North America, Europe and the Middle East. Meanwhile, LG H&H faced continued pressure from weak demand in China and domestic channels. Their divergent results reveal how strategy and speed define resilience in the beauty industry.
Amorepacific saw a notable 15.7 percent rise in consolidated revenue from January to March, reaching 1.16 trillion won. Operating profit jumped 55.2 percent year-on-year, totalling 128.9 billion won. Much of the momentum came from abroad, where international sales surged 40.5 percent to 473 billion won. Operating income from overseas markets more than doubled to 69.6 billion won. These gains highlight how K-beauty giants pivot beyond China to fuel new growth.
In the Americas, Amorepacific’s revenue grew 79 percent thanks to strong brand rollouts and effective retail partnerships. Flagship brands Laneige, Innisfree and Sulwhasoo performed well across major retailers. Cosrx, a popular skincare brand newly added to the portfolio, also contributed significantly to regional growth. In Europe, the Middle East and Africa, revenues tripled compared to last year. These markets benefited from the global appeal of lightweight Korean skincare and increasing brand recognition.
However, performance in Greater China told a different story. Sales declined, though operational streamlining helped the firm return to profitability. In other parts of Asia, Amorepacific’s brands gained traction, boosting sales by 53 percent. The company continues to reduce its exposure to China after suffering from past political tensions. China’s backlash against Korea’s 2016 missile defence decision severely hurt beauty exports. That impact forced companies to rethink long-term dependence on a single regional market.
K-beauty giants pivot beyond China, but LG Household & Health Care has taken a more cautious route. In contrast to Amorepacific, LG H&H reported a 1.8 percent drop in revenue to 1.69 trillion won. Operating profit fell by 5.7 percent to 142.4 billion won. Sluggish domestic demand and persistent challenges in China weighed heavily on overall performance. Despite this, overseas sales increased modestly by 4.2 percent, with gains in Japan and North America offering some optimism.
Japan delivered a 23.2 percent growth in sales, while North America rose 3.1 percent year-on-year. Still, China accounts for nearly 40 percent of LG H&H’s global sales. A 4.1 percent decline in that market overshadowed gains elsewhere. The firm’s heavy reliance on China remains a vulnerability. However, its Home Care and Daily Beauty segment offered stability. Strong demand for premium brands like Physiogel and Dr. Groot lifted that unit’s profit by 13.7 percent.
LG H&H also plans to strengthen its global footprint with new investments. This week, it committed $130 million to increase capital for its North American subsidiary. The funds will support marketing for brands such as The Face Shop and CNP. Executives aim to expand product offerings and boost presence in e-commerce. These efforts reflect a growing awareness that the company must diversify faster.
K-beauty giants pivot beyond China not only for growth but for survival. As trade tensions, legal risks and evolving consumer habits reshape the industry, global agility has become essential. Amorepacific’s proactive strategy already shows results. LG H&H, while slower to shift, now recognises the urgency. The next quarter may reveal whether both firms can thrive in an increasingly competitive global market.
