[Click eStock] "SMCG, the Hidden Gem of the Cosmetics Market"

On the 11th, SK Securities forecasted that SMCG would benefit from the increasing demand for glass containers in the cosmetics market.

Heo Seon-jae, a researcher at SK Securities, stated, "With the strengthening of plastic regulations, brands are enhancing their image by promoting eco-friendliness," and explained, "due to intensified competition and premiumization trends in K-Beauty, the glass container market will continue its structural growth trajectory."

He added, "Countries around the world are tightening regulations related to plastics, such as mandatory recycling rates and carbon emission permits," and noted, "this directly leads to a rise in the relative attractiveness of glass containers." Furthermore, he emphasized, "As the cost difference between glass and plastic production disappears, the eco-friendliness, safety, and premium feel of glass containers will become even more prominent."

Researcher Heo analyzed, "glass containers are actively applied to flagship products of various brands such as Amorepacific, Vinau, Manyeogongjang, and Dear Dahlia," and added, "Vinau's color cosmetics brand 'Fwee,' a major client, has recorded explosive sales growth through products based on glass containers."

He explained, "the glass container manufacturing industry requires continuous 24-hour operation of glass melting furnaces, resulting in significant operating leverage," and stated, "as of last year, fixed costs accounted for about 80%, and meaningful operating profit margin increases will accompany the full-scale sales growth going forward."