Korean cosmetics exports to the United States reached a record high of $440 million in the first quarter of this year, highlighting the continued global expansion of K-Beauty. Last year, Korea’s cosmetics exports to the U.S. hit $1.89 billion, surpassing France’s $1.263 billion for the first time.
The surge reflects the growing influence of Korean beauty companies in global markets. Original design manufacturers (ODMs) like Kolmar Korea and Cosmax have been pivotal in this success, crafting innovative products for ‘one-brand’ companies such as Missha and The Face Shop since the early 2000s.
Korean ODMs have built competitive advantages in specific categories like sun care, helping them outperform in markets like China where local brands dominate the mass segment while global players control premium offerings. Over 30 years, these ODMs have collaborated with more than 4,000 clients to build an extensive formulation database that global competitors struggle to match.
Gudai Global exemplifies the industry’s evolution, transforming from a cosmetics distributor to a brand company by acquiring Beauty of Joseon in 2019, and later adding “TIRTIR” and “LAKA” to its portfolio. The company reported sales of 1 trillion won ($689 million) last year, earning it the nickname “L’Oreal of Korea.”
Retail platform Olive Young has been instrumental in nurturing smaller brands. Last year, over 100 brands achieved annual sales of 10 billion won through the retailer, with three exceeding 100 billion won.
Social media, particularly TikTok with its 100.7 million U.S. users, has accelerated K-Beauty’s popularity. Searches for Korean brand sunscreens generate millions of views, demonstrating the platform’s influence on consumer behavior. Industry growth is also fueled by K-pop culture, which has created massive global interest in Korean beauty products and routines.
