South Korea’s cosmetics products, collectively known as K-beauty, have gained global recognition, overtaking French brands such as Chanel and Lancôme to emerge as the No. 1 imported beauty goods in the US and Japan.
According to government and industry data on Sunday, Korea has established itself as a “cosmetic powerhouse,” with Korean skincare, or basic cosmetics, dominating the US market while Korean color makeup goods driving growth in Japan.
Data from the US International Trade Commission showed that US imports of Korean cosmetics reached $1.41 billion from January to October 2023, overtaking France’s $1.03 billion, to become the top brand in the US imported cosmetics market.
Korean cosmetics firms captured a 22.2% market share, higher than French firms’ 16.3%, data showed.
In Japan, Korean beauty companies retained their top positions in the imported makeup goods market for three consecutive years in 2024.
According to Japan’s Imported Cosmetics Association, Korean cosmetics worth 94.2 billion yen ($599 million) were imported in the first three quarters of 2024, followed by French makeup goods worth 82.3 billion yen.
Korean firms controlled a 28.8% market share in Japan, while French firms held 25.1%.
RECORD K-BEAUTY EXPORTS
According to the Ministry of Trade, Industry, and Energy on Sunday, Korea’s cosmetics exports reached a record $10.2 billion in 2024, up 20.6% from the year prior.
Korea’s cosmetics exports previously peaked at $9.2 billion in 2021 before slowing to $8 billion in 2022 and $8.5 billion in 2023.
Data from the Korea Customs Service showed skincare exports to the US rose more than threefold to $815.1 million in 2024 from $231.9 million in 2020. Exports of color cosmetics to the US market more than doubled to $267.8 million from $124 million over the same period.
Color makeup products to Japan rose by 1.6 times to $316.6 million from $196.9 million over the period, while exports of basic cosmetics to Japan increased by 1.3 times to $258.4 million from $202 million.
Analysts said the surge in demand for Korean skincare products in the US is thanks to growing interest in functional cosmetics such as anti-aging products.
Meanwhile, in Japan, K-pop idols have influenced MZ-generation consumers – those born between the early 1980s and early 2000s – to emulate the makeup styles of Korean female celebrities, they said.
TARGETING US MARKET
Korean cosmetic companies are increasingly targeting the US market – the world’s largest with its market size valued at $96.4 billion as of 2022, according to the Korea Health Industry Development Institute.
China ranked second with its valuation at $71.1 billion, followed by Japan with $26.9 billion.
Amorepacific Corp., which reduced its reliance on China over the past few years to focus on the North American market, saw its US sales rise to 356.2 billion won ($242 million) in the third quarter of 2024 from 76.6 billion won in 2022.
LG H&H Co., formerly LG Household & Health Care, is launching products exclusively for the North American market.
In her New Year’s address, LG H&H Chief Executive Lee Jung-ae said she would strengthen the North American market lineup with increased investments in the region.
INDIE BRANDS FLY OFF SHELVES ON AMAZON
The renewed popularity of K-beauty in the US and Japan is led by indie brands with no or few offline outlets.
Their beauty products are often top picks on Amazon.com, eBay Japan, Shopee and other global e-commerce platforms amid the growing popularity of K-beauty products worldwide.
Since last year, several K-beauty products have ranked top in cosmetics sales during the Prime Day event, with brands like Cosrx Inc. leading the way.
Other Korean bestsellers on Amazon include Beauty Selection, VT Co., Goodal, Tirtir, Anua, d’Alba and Beauty of Joseon.
REGULATORY CHANGES UNDER SECOND TRUMP TERM
However, potential regulatory changes under a second Trump administration, such as the proposed universal tariff of 10–20% on imports, could impact the price competitiveness of K-beauty products in the US, where they are currently duty-free.
To mitigate such risks, Korean original design manufacturers (ODMs) are bolstering their US production facilities.
Kolmar Korea, which operates a production plant in Pennsylvania, plans to build a second plant there in the first half of this year.
“We will also work closely with Korean indie brands to increase our ODM sales in the US market,” said a Kolmar Korea official.
Cosmax Inc., Korea’s largest cosmetics ODM company, operates a factory in New Jersey.
Since the third quarter of last year, the company has been running a sales office in the western US to strengthen sales of its products in cooperation with local indie brands.
By In-Soo Nam
isnam@hankyung.com
Jennifer Nicholson-Breen edited this article.
