Korea Cosmetics

Research evidence excerpt

Korea Cosmetics

Macquarie Equity Research

26 June 2026

Consumer Staples

KoreaKorea Cosmetics

K-beauty scores well on EU's clean-beauty bar

Jun

Key Points Choi

• K-beauty has emerged as more than a value option in Europe, with

strong ingredient profiles positioning it as a credible alternative.

• Our analysis of product review app Yuka suggests pricing and Figure 1 - Korea cosmetics coverage

ingredient quality are loosely correlated; K-beauty products still scored Rec. (Won)CP (Won)TP TSR(%)

competitively. APR (278470KS) OP 381,000 520,000 38%

• EU penetration may be gradual given its fragmented nature, but its d'AlbaKolmarGlobalKorea (483650KS)(161890KS) OPOP 232,00086,600 295,000105,000 28%23%

large TAM should offer a sustainable sales growth opportunity. Pumtech Korea (251970KS) OP 33,200 64,000 94%

L&C Bio (290650KS) OP 97,100 114,000 17%

Classys (214150KS) OP 46,550 77,000 66%

• Europe demands ingredient-conscious beauty. The EU has been one HugelPharma(145020KS)Research (214450KS) OPN 254,000322,500 300,000330,000 18%4%

of the strictest consumer beauty markets globally with tighter guidelines Source: Macquarie Research, June 2026

on ingredients than the US and Korea. This has created a consumer Prices as of 24 June 2026

base that pays closer attention to product safety and formulation

quality. Even in this demanding market, K-beauty products have been Figure 2 - Correlation between

gaining traction across Europe thanks to strong ingredient profiles and pricing and Yuka score

compelling value.

• K-beauty screens well on what EU consumers value. From the EU

consumers' perspective, the odds of K-beauty success look high, in our

view. We used Yuka, a widely used consumer app that lets shoppers

scan product barcodes to review ingredient profiles, to understand