A customer shops for color cosmetics in a department store in Seoul on April 17, 2022. Sales of color cosmetics by the big three department stores, Hyundai Department Store, Lotte Department Store and Shinsegae Department Store, jumped by two digits since their regular spring bargain sale kicked off in early April. (Yonhap)
SEOUL, May 18 (Korea Bizwire) — Russia’s invasion of Ukraine and Indonesia’s ban on palm oil exports are leading to spiking prices of raw materials and raising the prices of essential goods like cosmetics and soap.
South Korea’s top cosmetics maker AmorePacific Corp. reported that the import price of glycerin used to make cosmetic products reached 1,524 won per kilogram in the first quarter, up 31.4 percent from last year (1,159 won).
LG Household & Health Care Ltd., a major producer of cosmetic and health care products, reported that the import price of palm stearin reached US$1,551 per ton, up 20.1 percent from last year ($1,291).
The import price of palm kernel oil reached $2,394 per ton, up 18.2 percent on year.
Glycerin, used to make cosmetics goods, is produced from palm oil. Corn starch and oil are also used to make cosmetic products.
Palm oil is used to make soap, shampoo, and other essential goods.
LG Household & Health Care saw its operating profit drop by 16.6 percent in the first quarter due to rising prices of raw materials.
Amorepacific has raised the prices of 83 products by an average of 10 percent.
Ashley Song (ashley@koreabizwire.com)
