Daily Industry & Raw Materials Briefing — April 7, 2026
K-Beauty exports hit an all-time high in Q1 2026, reaching $3.1 billion—a 19% jump year-over-year. Meanwhile, the prolonged Middle East conflict is strangling naphtha and oil supplies via the Strait of Hormuz, causing ripple effects across Asian industrial supply chains. Financial authorities are scrambling to provide liquidity to struggling sectors, while the semiconductor industry is showing signs of recovery with investments ballooning 35x compared to last year.
Key Industry Trends
🧴 Cosmetics | K-Beauty exports hit record $3.1 billion in Q1
K-Beauty is on a roll. Q1 2026 exports climbed 19% year-over-year to hit an all-time high of $3.1 billion. According to data from the Ministry of Food and Drug Safety, the boom is largely driven by surging demand in the US market. The growth trend over the last few years has been steady: $1.8B in 2022, $1.9B in 2023, $2.3B in 2024, and now $3.1B in 2026.
🧴 Cosmetics | Daebong LS and BASF partner for precision beauty tech
Local cosmetic material specialist Daebong LS has teamed up with global chemical giant BASF to sharpen their "precision design" capabilities. The industry is taking note of this shift, which moves beyond simple ingredient competition to focus on differentiated material engineering from the initial design phase.
💻 Semiconductors | Q1 investments reach 789.5 billion KRW — 35x jump
Investment in the semiconductor sector reached approximately 789.5 billion KRW in Q1 2026, marking a massive 35-fold increase compared to the same period last year. Analysts attribute the surge to growing optimism regarding a recovery in the semiconductor cycle.
🔋 Secondary Batteries | Integrated process expertise gains ground
As demand shifts across cosmetic materials, semiconductor equipment, and battery production, companies that can master end-to-end production processes are becoming increasingly competitive. At the "KOREA PACK & ICPI WEEK 2026" exhibition, firms like JP Innovation demonstrated a strategy of serving diverse industries—from pharma and bio to chips and batteries—to hedge against downturns in any single sector.
Raw Materials & Supply Chain Shortages
⚠️ Naphtha supply crisis — Packaging costs soar, May is the "danger zone"
Geopolitical tensions in the Middle East are causing severe disruptions to naphtha, a key ingredient for food packaging. With the prolonged US-Iran conflict blocking the Strait of Hormuz, naphtha prices have spiked from an average of $595 per ton in January. Industry experts warn that the real pinch will be felt in May as existing inventory stocks run dry.
⚠️ Middle East risks — Distribution chaos and inflation loom
The Middle East geopolitical risk is fueling a chain reaction: rising oil and naphtha prices are hiking the costs of packaging, logistics, and food supplies. Retailers are currently scrambling to rework their product lines and delivery strategies, as reports signal a growing risk of distribution bottlenecks and sharp inflation.
⚠️ SMEs in distress — Rising costs and canceled contracts
Small and medium-sized enterprises are facing a "perfect storm" of rising raw material costs, surging logistics fees, and mass contract cancellations due to the Middle East situation. Supply chain experts are urging proactive responses, warning that once manufacturing capacity is lost, it is extremely difficult to recover.
⚠️ Fashion | Bracing for long-term Middle East risks
While the fashion industry hasn't hit a crisis point yet, companies are bracing for potential impacts on the upcoming Fall/Winter (FW) season. Given the industry's heavy reliance on overseas materials and the volatility in oil and currency exchange rates, firms are already reviewing supply chain diversification as a contingency plan.
Macro-Economic Analysis
📊 Financial authorities act to defend industry liquidity
In response to the growing supply chain anxiety caused by the Middle East, financial authorities have begun rolling out liquidity defense measures for key industries. With the rising threat to oil supply and the resulting volatility in exchange rates, corporate cash flow is tightening rapidly. Analysts note that while the government is injecting cash, time is the biggest variable.
📊 Global economy — Asian supply chain strain spreads
According to international reports like CNN, the disruption to oil and petrochemical supplies stemming from the Iran conflict is effectively spreading across all of Asia. Symptoms are becoming visible, ranging from consumer panic buying to production halts at factories.
📊 Cosmetics: Export growth continues despite uncertainty
Even as macroeconomic indicators remain volatile and unpredictable due to the Middle East conflict, the export growth of the beauty and cosmetics industry remains remarkably resilient. Analysts highlight that this strong export performance is currently serving as a key pillar of stability against the broader economic uncertainty.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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