The K-beauty industry is experiencing steady growth. Leveraging its exceptional manufacturing and research and development (R&D) capabilities, coupled with the global spread of Korean pop culture, the sector has secured a competitive edge in the international market. Industry experts predict continued expansion, driven by ongoing overseas ventures of related companies and a growing domestic market fueled by inbound tourism.
Industry sources reported on Friday that beauty and medical companies are increasingly looking abroad to offset limited domestic demand and secure higher profit margins. Three companies, in particular, have caught the market’s attention: Classys (214150), Hugel, and Wontech.
Classys, established in 2007, is a manufacturer of aesthetic medical devices that went public on the KOSDAQ on December 28, 2017. Its flagship products include the Ultraformer MPT, a high-intensity focused ultrasound (HIFU) lifting device; the Volnewmer, a monopolar radiofrequency (RF) lifting device; and their latest offering, the Quadssey, a microneedle radiofrequency (MNRF) lifting device.
The company distributes its aesthetic medical devices, procedure consumables, cosmetics, and personal care devices to more than 80 countries through international distributors, domestic medical facilities, and direct sales to consumers.
As of 2024, 67% of Classys’ revenue comes from international sales, underscoring its strong global presence. Following FDA approval secured last July, the company is set to aggressively expand into overseas markets, including the United States, this year. Reports also indicate smooth progress in preparations for entering the Chinese market.
An analyst from Hana Securities commented that as Classys increases its global market penetration, we anticipate improved profit margins and revenue stability from recurring sales of consumables.” The firm projects a 50% year-over-year increase in consolidated revenue to 521.5 billion KRW (approximately $391.13 million) for this year, with operating profit expected to rise 51% to 258.1 billion KRW (about $193.58 million).
Hugel, founded in 2001, made history in October 2020 as the first South Korean company to receive approval from China’s National Medical Products Administration (NMPA) for its botulinum toxin product, Retibo. The product has successfully navigated regulatory challenges in China, securing a 15% market share. In a significant milestone, Hugel also obtained FDA approval in February 2024.
Industry analysts report that Hugel’s toxin sales in the U.S. market continue to perform strongly, while its operations in China are experiencing robust growth.
Looking ahead, Hugel plans to bolster its performance stability by expanding consumer touchpoints and diversifying its product portfolio. The company is set to commence direct sales in the U.S. next year and plans to broaden its product range, positioning it for significant long-term growth.
Hana Securities forecasts Hugel’s revenue for this year to reach 502.1 billion KRW (approximately $376.58 million), marking a 19% increase from the previous year. The firm’s operating profit is projected to hit 235 billion KRW (around $176.25 million), up 22% year-on-year.
Wontech, established in 1999, has made a name for itself in the aesthetic medical device industry with its flagship product, the Oligio monopolar RF lifting device. The company has rapidly expanded its presence in emerging markets across Asia, Latin America, and the Middle East, capitalizing on its competitive pricing and proven treatment efficacy.
Wontech’s business model combines equipment sales with ongoing consumable purchases, creating a robust recurring revenue stream as its installed base grows. The company has established subsidiaries in the U.S., China, and Japan, and now operates in over 58 countries worldwide. Recently, Wontech secured medical device approvals in key European markets, including the UK and Australia.
An industry insider said strong equipment sales in Asian markets such as Thailand, Taiwan, and Japan had created a positive feedback loop in which initial device sales drive ongoing consumable purchases, significantly boosting Wontech’s revenue base. The source added that the company is expected to continue growing in the coming years.