CNBC Cites NielsenIQ Data
"K-beauty Expected to Surpass $2 Billion in U.S. Sales This Year"
TikTok Word-of-Mouth Drives Growth Among Millennials and Gen Z
There are projections that sales of Korean cosmetics in the United States will surpass 2 billion dollars (approximately 2.93 trillion won) this year. Analysts attribute this rapid takeover of major U.S. retail shelves to the word-of-mouth marketing effect generated through social networking services (SNS) such as TikTok, a Chinese-owned video-sharing platform popular among younger consumers.
On the 27th (local time), CNBC in the United States reported, citing data from market research firm NielsenIQ, that K-beauty sales in the U.S. are expected to increase by 37% year-on-year in 2025. While overall growth in the U.S. cosmetics market is expected to remain in the single digits this year, the growth trajectory of K-beauty is considered exceptionally steep.
Therese-Anne D'Ambrosio, Vice President of Beauty & Personal Care at NielsenIQ, said in an interview with CNBC, "The growth of K-beauty is truly remarkable," adding, "While the overall U.S. beauty market is growing in the single digits, K-beauty is clearly operating at a different pace."
The driving factors behind this growth include the explosive reach of TikTok, a young and diverse customer base, and the aggressive expansion strategies of major retailers such as Ulta, Sephora, Walmart, and Costco.
In particular, major U.S. distributors are closely monitoring consumer interest in K-beauty. Ulta, a cosmetics specialty store, announced that its sales of Korean cosmetics rose by 38% in the first quarter of this year and that it posted results surpassing market expectations in the second quarter as well. The company explained that collaboration with K-beauty brands has been a key driver of sales growth. Sephora is also actively expanding its K-beauty presence by dedicating a wall in its New York Times Square flagship store exclusively to K-beauty products and signing exclusive supply agreements with various K-beauty brands.
Word-of-mouth marketing centered on TikTok is most frequently cited as the primary factor behind K-beauty's rapid growth. According to Personal Care Insights, about three-quarters of K-beauty consumers in the U.S. are Millennials & Gen Z, who primarily obtain product information from TikTok. Consumer data company Spate reported that weekly views of posts related to K-beauty and Korean skincare reach as high as 250 million.
However, some point out that K-beauty's growth is excessively dependent on SNS-based word-of-mouth, which poses a potential risk. Vice President D'Ambrosio warned, "If growth becomes overly concentrated on a single platform, even a change in the recommendation algorithm can drastically alter exposure overnight. We have witnessed several times how adjustments to recommendation algorithms on these platforms can lead to significant consequences."
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