"K-Beauty Tops Sales with 2.5 Trillion Won Sold, Surpassing France as Number One"

Korean Cosmetics Top U.S. Export Rankings Last Year
Expanding Presence in the U.S. Through Platforms Like TikTok and Amazon

A cosmetics shopping mall in Myeongdong, Seoul is bustling with foreign customers.

Riding the wave of the Korean Wave (Hallyu) including K-pop, the global K-beauty trend is booming, and last year, South Korea's cosmetic industry surpassed France to rank first in exports to the United States.

On the 31st (local time), Bloomberg cited data from the U.S. International Trade Commission, reporting that South Korea's cosmetic exports to the U.S. last year reached $1.701 billion (approximately 2.5 trillion KRW), surpassing France's $1.263 billion (about 1.8 trillion KRW). Canada ranked third with $1.022 billion (about 1.5 trillion KRW), followed by Italy, China, Mexico, the United Kingdom, and Japan.

The K-beauty craze is analyzed to be a result of the popularity of K-culture. The Korean cosmetics industry has benefited from the global popularity of K-pop and K-dramas, and companies are leveraging product sponsorships to sell various products in the U.S. market, the media reported. Earlier, last year, the Ministry of Food and Drug Safety also announced that the scale of Korean cosmetics exported worldwide, including the largest market, the U.S., increased by 20.6% compared to the previous year, reaching $10.2 billion (about 15 trillion KRW), surpassing $9.2 billion (about 13.5 trillion KRW) in 2021 and breaking the $10 billion mark for the first time.

Foreign tourists visiting Myeongdong Shopping Street in Seoul are consulting for cosmetic purchases.

This trend emerged as consumption of Korean cosmetics slowed in the Chinese market, which had enjoyed a boom for some time. The industry has expanded its presence in the U.S. through online promotions via platforms like TikTok and Reddit, as well as partnerships with Costco and Amazon. Kolmar Korea is preparing to operate its second factory in the U.S. in response to increased demand in North America, and CJ Olive Young reportedly plans to open its first specialty store in the U.S., fueled by a 140% increase in sales to overseas travelers last year.

As Korean cosmetics gain popularity, foreign companies such as L'Or?al are showing interest in acquiring Korean firms. According to advisory firm MMP, mergers and acquisitions (M&A) of Korean cosmetic companies reached a record 18 deals last year, Bloomberg reported. However, in terms of deal value, it was about $2.3 trillion (approximately 3,435 trillion KRW), falling short of $3.3 trillion (about 4,869 trillion KRW) in 2017 and $2.8 trillion (about 4,134 trillion KRW) in 2023. An MMP representative stated, "Private equity funds' interest in Korean cosmetics is increasing," and predicted, "Given the strong growth in exports to the U.S., the M&A boom is expected to continue this year as well."