[Edaily Reporter Park Jung-Soo ] As K-Beauty exports reach an all-time high, demand for high-end packaging materials—such as cosmetic containers and single-layer cartons—is also on the rise. HanchangPaper(009460), the leader in the domestic high-end whiteboard paper market, is expected to benefit from the growth of K-Beauty.
According to the Ministry of Food and Drug Safety on the 25th, cosmetics exports in the first half of this year totaled $7 billion, a 27.3% increase compared to the same period last year. Second-quarter exports reached $3.9 billion, up 25.8% from the first quarter. Growth continues to be driven primarily by North America and Europe, with cosmetics exports from small and medium-sized enterprises (SMEs) also rising by more than 30%.
The expansion of cosmetics exports could lead to increased demand not only for containers holding the products but also for packaging materials such as outer boxes. In particular, for premium cosmetics—where print quality, color reproduction, and workability are critical—high-grade whiteboard paper, which is of higher quality than standard whiteboard paper, is primarily used.
HanchangPaper is recognized as the leading player in the domestic high-grade whiteboard paper market, holding a market share of approximately 50%. High-grade whiteboard paper is used for packaging premium products, including cosmetics, information technology (IT) devices such as smartphones, and food items. It is a product with higher quality standards than standard whiteboard paper and relatively higher barriers to entry for customers.
Cosmetics packaging is considered a highly profitable product category within HanchangPaper’s premium whiteboard paper business. Cosmetics-related products accounted for approximately 10% of total sales in the first half of this year. Sales in the cosmetics segment increased by about 15% compared to the same period last year.
In particular, high-grade whiteboard paper for cosmetics packaging is a high-margin product category even within the broader high-grade whiteboard paper segment, which itself is about 15% more profitable than standard whiteboard paper. Accordingly, the company expects that the increase in sales volume driven by the expansion of K-Beauty exports will not only contribute to overall growth but also positively impact the product mix by increasing the proportion of high-margin products.
Financial performance is also showing signs of recovery. HanchangPaper recorded revenue of 137.4 billion won and operating profit of 5.6 billion won in the first half of this year. Operating profit increased by 135% compared to the previous quarter. This was driven by higher selling prices for standard whiteboard paper and a profitability-focused reorganization of the product portfolio.
The diversification of K-Beauty export markets and brands is also a positive factor driving the expansion of demand for high-end whiteboard paper. While cosmetics exports—which were historically centered on China—are expanding into North America and Europe, the overseas expansion of small and medium-sized (SME) and indie brands is also on the rise. The company explains that as the number of new brands and products increases, the variety of packaging types and SKUs will grow, potentially expanding demand for high-end packaging materials centered on small quantities and a wide variety of products.
Although demand for traditional printing paper is declining due to the spread of electronic documents, high-grade whiteboard paper is used for packaging premium consumer goods such as cosmetics, IT devices, and food, resulting in a different demand structure. It is utilized not only to protect products but also as a material to convey brand image, and since quality consistency and a proven track record of delivery are crucial, the barriers to entry for client companies are relatively high.
An industry official stated, “The expansion of K-Beauty exports is spreading not only to cosmetics manufacturers and brands but also to downstream industries such as containers and packaging materials,” adding, “As the leading player in the domestic high-grade whiteboard paper market, HanchangPaper has secured a competitive edge in the premium packaging market and is expected to benefit from the growing demand for cosmetics packaging.”