5 days ago
K-beauty wears US crown — Can it survive tariff test?
A resounding win, but hurdles remain as K-beauty's US lead signals deeper push into mainstream
It's now clear that Korean beauty has far outgrown its modest local beginnings.
Last year was truly a banner year for the industry, with cosmetics exports surging 20.3 percent to $10.2 billion, ranking third globally behind the US ($11.19 billion) and France ($23.26 billion), according to the Ministry of Food and Drug Safety.
Zooming in on US-bound exports last year, Korea's stature continues to rise: The country is not only in the top three in global exports, it ranks first in the world's largest consumer market, eclipsing former leader France.
To the top: US breakthrough
K-beauty's success formula, rooted in the global K-content wave and lab-based innovation, has worked its magic worldwide, but it's the affordability and e-commerce factors that have propelled K-beauty onto mainstream American shelves.
The online retail platform Amazon, unsurprisingly, is the prime stage for K-beauty brands, a gateway essential to nationwide popularity in the US.
'Many leading K-beauty brands have found success entering the US market through Amazon,' noted a Seoul-based cosmetics researcher, adding that their strong sales, fueled by K-beauty's competitive pricing, have only further driven demand.
Amazon reported that K-beauty sellers' net sales on its US platform jumped roughly 170 percent on-year last year, with the number of brands climbing to 230, a 1.4-fold increase over the past three years.
Success in online sales creates synergies with social media platforms like TikTok and Instagram, where K-beauty builds familiarity and trust with consumers through viral videos. So much so that TikTok's e-commerce channel, TikTok Shop, has become a new space where brands like Medipeel and Anua now hold top spots.
Outside the digital realm, Korean beauty has moved into a new phase of visibility, now stocked in major beauty retailers like Sephora and Ulta Beauty, and supermarket chains such as Walmart and Target.
Widespread retail contact, however, is not enough to sustain the K-beauty hype if the products fail to deliver on their promised efficacy.
'K-beauty's ascent owes much to its deep understanding of American consumers and its agility in meeting their needs,' explained Kim Ju-duck, professor in the beauty industry department at Sungshin Women's University.
'It has been quick to deliver localized, high-quality products tailored to American preferences and skin types, while putting emphasis on clean formulations that resonate with sustainability-conscious consumers.'
Famous examples include TirTir, whose 30-shade cushion compact appealed to a diverse range of skin tones, topping Amazon's US beauty sales last year. In skincare, Medicube has gained popularity for its collagen-boosting properties, while brands such as Cosrx and Anua stand out for star ingredients like snail secretion and heartleaf extract.
Driving this growth in part are original design manufacturers, according to Kim, whose advanced development and production capabilities have enabled smaller Korean brands to scale rapidly.
This marks a subtle yet profound shift in consumer behavior from brand loyalty to a product-first mindset, one industry observer noted. Regardless of brand size, more consumers, especially younger generations, are weighing product quality and price above all.
Korea's top two ODMs, Kolmar Korea and Cosmax, both posted record-high sales last year at 2.45 trillion won and 2.16 trillion won, respectively.
Storied brands and contract manufacturers, which handle the bulk of production for smaller K-beauty brands, also remain well-prepared to meet US regulations, including stricter FDA registration, product listing and labeling requirements under the Modernization of Cosmetics Regulation Act.
'We have a dedicated team that monitors US regulations, including MoCRA and the FDA's requirements for over-the-counter drugs like sunscreens, to ensure compliance,' said a Cosmax official.
At the top: US hurdles
K-beauty's hard-won rise to prominence faces a looming challenge: a delayed 25 percent tariff set to hit on July 8, adding to the minimum 10 percent tariff already in place.
In a bid to offset the impact, some firms are leveraging their existing capabilities, while others are eyeing market entry.
Kolmar Korea is ramping up its US operations, with a second facility entering pilot operations in the second quarter of this year, complementing its existing factory in Pennsylvania. 'With the Trump administration's tariffs in play, we're seeing a rise in domestic brand inquiries for US-based production," a Kolmar official said.
Once the second plant comes online, Kolmar Korea expects its local annual production capacity for sunscreens and basic skincare to nearly double from the current 180 million.
Cosmax projected its sunscreen production in Korea and the US will more than triple this year, as four times as many clients plan to enter the US OTC sunscreen market. Cosmax's facility in New Jersey produces around 280 million units annually, accounting for 10 percent of the company's total production.
The move coincides with a tariff scare that, in April, sent US consumers into a buying spree for Korean sunscreens prized for their superior UV protection and seamless compatibility with layered makeup.
South Korea's top two beauty giants, Amorepacific and LG Household & Health Care, are also stepping up their US operations.
LG H&H announced in April a $130 million paid-in capital increase for its North American subsidiary in order to expand its product lineup and boost marketing initiatives.
Amorepacific hinted at building its own US manufacturing facilities. In April, CEO Kim Seung-hwan told Bloomberg TV the company plans to invest in US logistics and modular production infrastructure within the next three to five years.
Though the tariff situation may seem dire, some industry insiders are more concerned about the strong won against the dollar, which could drive up the prices of Korean imports in the US market.
'Tariffs strike far and wide, not just Korea, and for companies heavily dependent on exports, the won-dollar exchange rate could prove even more critical,' said one insider on condition of anonymity.
They went on to describe a new chapter in which technological prowess will shape success in an increasingly personalized and segmented market for years to come: 'In fact, consumers' love for K-beauty is no longer about price alone."
K-beauty brands are hardly running behind as they pursue rapid innovation in their products.
At this year's CES in January, for instance, beauty powerhouses like Amorepacific, Kolmar Korea and APR showcased next-generation beauty tech, including AI-powered devices, as they charge forward into the tech-infused future.
