Last year, South Korea achieved a significant milestone by overtaking France as the leading exporter of beauty products to the United States, the world’s largest beauty market. This development highlights the increasing influence and appeal of Korean beauty products, or K-beauty, in the global market.
South Korea’s cosmetics exports reached a record high of $10.2 billion in 2024, surpassing the previous record of $7.5 billion set in 2020, as reported by the Korean Food Ministry.
Korea’s Rise in the U.S. Cosmetics Market
The U.S. imports of beauty products in 2024 were over $7.59 billion, a 13.7% increase from the previous year.
According to the Korea International Trade Association (KITA), South Korea exported over $1.7 billion worth of beauty products to the U.S. in 2024. That accounts for about 22.4% of the total U.S. import market. And this a 54.3% increase compared to the previous year.
On the other hand, the exports from France to the U.S. reached over $1.26 billion, making it 16.6% of the market share, which is a modest 9.4% increase from the previous year.
Korea has become the top exporter of beauty products to the U.S. market, overtaking France in 2024. It is the first time Korea has outpaced France in this sector.
Comparative Growth and Market Dynamics
In 2023, the Korea beauty product exports to the U.S. crossed the $1 billion mark. The country exported over $1.1 billion which was about 16.5% of the total U.S. import of beauty products. And this was just 1% less than imports from France. Up until 2023, France dominated this market, but its growth rate has been impacted by rapid ascent of Korean wave.
The market share other notable exporters include France with $1.26 billion, Canada with $1.02 billion, Italy with $879 million, and China with $671 million in exports.
Korea Exports Product Category Insights
The increase in Korea cosmetics exports is largely attributed to significant growth across key product categories according to the Ministry of Food and Drug Safety:
- Basic Makeup Products: Exports increased by 66.8%, rising from $840 million to $1.4 billion.
- Color Cosmetic Products: Saw a 25.8% increase, growing from $210 million to $260 million.
- Body Cleansing Products: Experienced the most dramatic rise of 122.2%, from $40 million to $90 million.
Global Export Landscape
Despite the exceptional success in the U.S., China is still Korea’s top destination for beauty products in 2024, with exports totaling $2.5 billion. In 2021, China was taking 53.2% of total Korea’s beauty product exports. However, exports to China have been on a decline, dropping to 24.5% of Korea’s total beauty product exports—the lowest in four years.
The U.S. comes second in the total exports from Korea globally. Japan ranked third, importing $1 billion worth of Korean beauty products. Notably, the United Arab Emirates entered Korea’s top 10 beauty product export destinations for the first time, with exports amounting to $170 million.
Factors Driving K-Beauty’s Popularity in the U.S.
The growing popularity of Korean beauty products in the U.S. can be attributed to several factors:
- Social Media Influence: Platforms like TikTok and Reddit have played a pivotal role in promoting K-beauty products, leading to viral trends and increased consumer interest.
- Retail Expansion: Korean beauty brands have successfully penetrated major U.S. retail chains and e-commerce platforms such as Costco and Amazon, enhancing accessibility and visibility.
A recent study conducted by TikTok and Kantar projected a significant increase in global spending on Korean cultural products, with a nearly doubling of the market value to $143 billion by 2030. This projection presents a favorable outlook for South Korea’s cosmetics industry.
This remarkable growth in exports reflects the global recognition and demand for Korean beauty products, positioning South Korea as a formidable player in the international cosmetics industry. On the other hand, global beauty giants like Estée Lauder Co. and Japan’s Shiseido Co. are struggling. The former is projecting a decline in sales for the current quarter while the latter is facing lower demands from China.
Big Investments in K-beauty
This rise of beauty product exports from Korea has also attracted significant interest from major players like L’Oréal SA and Archimed SAS. The cosmetics sector in Korea experienced a record number of deals valued at $1.59 billion (2.3 trillion won) in 2024.
Although it is lesser than the $2.25 billion record in 2017, the pace of these deals is unprecedentedly fast. It showcases a sustained momentum of growth according to the advisory firms.
Given the strong growth of exports in the US, we expect the M&A boom will definitely continue this year.
– Manhwi Han, a deal partner at advisory MMP
One notable success is COSRX Inc., which was acquired by Amorepacific Corp. in October 2023. The company generates approximately 60% of its revenue from the United States and Europe.
K-culture is behind these big investments
The sharp increase in investments in Korean cosmetics is because of the global influence of K-wave. It has taken the beauty industry to the same level as K-pop and K-drama. Subtle advertisements through product placements in K-drama are everywhere – from stick balms worth $22.99 to LED face masks worth $2,350. And because of all this, the U.S. is emerging as a primary market for Korea exports.
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