Samjong KPMG’s K-Beauty Analysis Report
“Entering a Structural Growth Phase, Expanding Across the Entire Value Chain”
Amid the strengthening of K-beauty’s global standing, the fervor for mergers and acquisitions (M&A) and investments in the domestic and international cosmetics industry is intensifying.
According to the report "Rising Players Driving Global Beauty Trends: K-Beauty," published by Samjong KPMG on October 27, Korea's cosmetics exports grew at an average annual rate of 14.6% over the past decade (2015-2024), reaching 10.3 billion USD in 2024, a 19.9% increase compared to the previous year. Korea has now established itself as the fourth largest cosmetics exporter worldwide.
The report stated, "K-beauty, with its rapid product development, reasonable pricing, multi-step skincare, and low-irritation, high-functionality concepts, has emerged as a key trendsetter in the global cosmetics market." It further assessed, "This is not a temporary fad driven by the popularity of Korean Wave content, but rather a transition to a structural growth phase focused on product quality and brand value."
Recently, large-scale deals centered on indie brands have been occurring in succession, expanding the scope of investment across the entire value chain. Gudai Global has risen as a leading multi-brand house representing Korea by consecutively acquiring brands such as Beauty of Joseon, Laka Cosmetics, and Craver Corporation. In 2025, it further strengthened its portfolio by adding Seorin Company and Skinfood.
Major cosmetics companies are also actively incorporating indie brands with high growth potential. LG Household & Health Care acquired Viva Wave, which owns the color cosmetics brand Hince, while Shinsegae International acquired Amuse, a brand recognized for its sophisticated design and planning capabilities.
Financial investors (FIs) are also actively participating. Morgan Stanley Private Equity secured a 67% stake in Skinidea, which owns the brands Medipeel and Dermamaison, in 2024. KLN Partners acquired a majority stake in Manyo Factory. Global private equity fund KKR expanded its value chain investment by acquiring Samhwa, a premium dispenser and cushion packaging manufacturer, for approximately 733 billion KRW in July this year.
The export structure is also diversifying. While China previously accounted for over 40% of exports, its share dropped to 24.5% in 2024. Meanwhile, exports to the United States (18.6%), Europe (13.9%), and Japan (10.2%) have increased rapidly. In particular, exports to the United States surged by 55.9% year-on-year in 2024, emerging as a next-generation growth market.
Samjong KPMG analyzed that the growth of K-beauty is not limited to the performance of individual brands or products, but is the result of innovation across the entire value chain, from raw materials and packaging to manufacturing (ODM), distribution, and sales.
In the raw materials sector, technological innovation is active around high-functionality ingredients such as PDRN and exosomes. Advanced Beauty Science succeeded in domesticating PDRN technology extracted from plants, while PharmaResearch is gaining global popularity with its own brand Rejuran. In addition, with the spread of vegan and eco-friendly trends, Daebong LS is differentiating itself by developing Korean plant-based ingredients such as green tangerine and yuzu seeds.
In the packaging sector, the introduction of pre-mold systems and the development of eco-friendly packaging materials using recycled ingredients are expanding in response to the proliferation of indie brands and the strengthening of environmental regulations.
In the manufacturing (ODM) sector, Korean companies are increasingly expanding globally. Cosmax operates production bases in the United States, China, Indonesia, and Thailand, enhancing its manufacturing capabilities, while Kolmar Korea plans to establish a local factory in the United States in 2025 to target the North American market. These companies are also strengthening R&D investments to introduce smart factories based on artificial intelligence (AI) and digital transformation, and to respond to the growing demand for high-functionality products such as dermocosmetics.
In the distribution and sales sector, major K-beauty brands are actively utilizing global e-commerce platforms and new channels such as TikTok to expand their reach to overseas consumers.
Samjong KPMG suggested that as the spread of K-beauty accelerates in the global market, the key tasks for the industry’s sustainable growth will be ▲diversification of export destinations ▲strengthening global regulatory response capabilities ▲and establishing brand identity. The report particularly emphasized the need to actively seek opportunities in emerging markets such as the Middle East, Central Asia, and South America, beyond the current export focus on China, the United States, Japan, and Western Europe. Additionally, as safety and transparency standards for cosmetics are being strengthened globally, K-beauty companies should recognize regulatory compliance as a core strategy for building trust.
The report also analyzed that as the "omnivore" consumption trend-where consumers mix and match various brands and products-spreads, companies must pursue sophistication across all areas, including raw materials, packaging, and distribution channels, to deliver differentiated consumer experiences.
Kim Yumi, Managing Director at Samjong KPMG, stated, "The success of K-beauty is not the result of a single brand, but the synergy created by the organic integration of all stages of the value chain, including raw material development, formulation innovation, rapid commercialization, marketing strategies, and distribution channels." She emphasized, "Large corporations and investors should not stop at simple acquisitions, but should secure sustainable competitive advantages within the K-beauty ecosystem through strategic investments focused on strengthening value chain competitiveness and enhancing global responsiveness."
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