K-Beauty Surges to Top in U.S. and Japan, Overtaking French Luxury Brands

Cosmetics stores on a popular street in Seoul frequented by foreigners. (Yonhap)

SEOUL, Jan. 6 (Korea Bizwire) — South Korea’s K-Beauty industry has outpaced French luxury giants like Chanel and Lancôme to become the top imported cosmetics category in the United States and Japan, solidifying its position as a global cosmetics powerhouse.

According to South Korea’s Ministry of Trade, Industry, and Energy, the country’s cosmetics exports exceeded $10 billion for the first time in 2024, marking a 20.6% year-over-year increase to reach $10.2 billion.

This resurgence follows a temporary slump in 2022 and 2023 and reflects explosive growth in global demand for K-Beauty products.

Dominance in Key Markets

In the United States, South Korean cosmetics accounted for 22.2% of total imports from January to October 2024, with $1.4 billion in sales. This performance dethroned France, which held 16.3% of the market.

The surge was driven by growing interest in Korean skincare products emphasizing anti-aging and functional ingredients.

Similarly, Japan saw South Korean cosmetics maintain the top import position for the third consecutive year in 2024. By the third quarter, imports of South Korean products totaled 94.2 billion yen ($878 million), ahead of French cosmetics at 82.3 billion yen ($768 million).

The Japanese market showed a preference for Korean color cosmetics, influenced by K-pop culture and trends like “Jang Won-young makeup,” inspired by popular idols.

A display of lipstick products, a signature item of K-Beauty. (Yonhap)

Shifting Preferences and Growth Strategies

Skincare products dominate K-Beauty exports to the U.S., with export values tripling from $231 million in 2020 to $815 million in 2024. In Japan, color cosmetics have seen a 1.6-fold increase over the same period, driven by trendy formulations and eye-catching packaging.

Industry leaders like Amorepacific and LG Household & Health Care have intensified their focus on the U.S. market, which boasts the world’s largest cosmetics sector at $96.4 billion.

Amorepacific’s North American revenue grew steadily, reaching ₩356.2 billion by the third quarter of 2024. LG Household & Health Care has also introduced market-specific products to capitalize on growing demand.

Indie brands such as CosRX, TIRTIR, and d’Alba have leveraged platforms like Amazon to expand their footprint, appealing to younger consumers through social media and word of mouth.

On the afternoon of December 3, 2024, at the COEX convention center in Seoul’s Gangnam district, an international buyer photographs K-Beauty products on display at the ’2024 Global Marketing Expo.’ (Yonhap)

Challenges on the Horizon

Despite K-Beauty’s success, concerns about potential U.S. trade policy changes loom. If tariffs of 10-20% on imports are implemented, South Korean cosmetics, currently duty-free, could face reduced price competitiveness.

Some manufacturers, such as Kolmar Korea and Cosmax, are ramping up North American production to mitigate risks. Kolmar Korea plans to fully operationalize its second Pennsylvania plant by mid-2025 to support indie brand clients entering the U.S. market.

However, industry experts remain optimistic. “K-Beauty has evolved from being known for affordability to being recognized for quality and innovation,” said a cosmetics executive. “While price adjustments may impact demand, K-Beauty’s reputation as a trusted category should sustain its momentum.”

As South Korea’s cosmetics industry looks to reduce dependence on China and further penetrate the U.S. market, the future of K-Beauty appears bright, driven by innovation, global appeal, and strategic market adaptation.