Korean Beauty Trends & Industry News: 25-06-05

How Daiso Is Disrupting K-Beauty Retail in 2025

    Daiso, traditionally perceived as a budget household goods retailer, is rapidly evolving into a significant player in Korea's beauty industry. With a growing number of foreign tourists naming Daiso as a must-visit destination for cosmetics, its influence as a K-beauty distributor is stronger than ever.

Notable examples include LG Household & Health Care’s exclusive “Bye od-td” line for Daiso, which surpassed one million units sold within nine months. Tony Moly’s “Boncept” line reached an impressive 3 million cumulative sales within its first year. These aren’t just affordable items, they are products backed by trusted names in the industry, tailored specifically for Daiso consumers.

Daiso's strength lies in its use of pre-existing, recognized brands, rather than promoting in-house labels. This strategy resolves both quality trust issues and pricing concerns simultaneously. The company works with both major corporations like Amorepacific and LG as well as smaller cosmetics firms such as VT Cosmetics, inviting them to create Daiso-exclusive versions of their products.

K-beauty brands are motivated to collaborate because Daiso purchases 100% of the inventory for resale, eliminating leftover stock risks. Moreover, selling through Daiso builds brand familiarity among younger consumers (especially those in their teens and twenties), who often discover brands here for the first time.

Daiso’s Q1 2025 beauty division sales grew 130% compared to the previous year, driven by the success of both skincare and makeup products. The online platform DaisoMall is also seeing massive growth, with 3.62 million users reported in March alone, up 69% YoY from 2.14 million. Just two years ago, the site had barely passed 1 million users.

Between 2023 and 2024, the number of beauty brands stocked at Daiso more than doubled, from 26 to over 60. The variety of individual products expanded from around 250 to more than 500, creating a vibrant and diverse product ecosystem.

This evolution marks a turning point: Daiso is no longer just a discount retail space, it’s now being considered a “blue chip” distribution platform within the Korean beauty industry. Its success has even begun to make industry giant Olive Young take notice, suggesting that Daiso’s approach could reshape the entire K-beauty retail landscape.

K-Beauty's Strategic Shift Toward Europe in 2025

    Korean cosmetics brands are broadening their horizons beyond North America, actively shifting focus to the European market in 2025. With rising awareness in Europe, sparked by word-of-mouth from U.S.-based influencers on social media, brands are making meaningful inroads into offline retail channels across the continent.

According to the Korea Customs Service, Korea’s cosmetics exports in May 2025 reached $806 million, marking a 9% year-over-year increase. Of this, exports to Europe (nine countries combined) accounted for $112 million, a staggering 51% increase, highlighting Europe’s growing appetite for K-beauty.

Poland stands out as the top-performing country, logging $22 million in exports for May—up 149% from the same month last year. This explosive growth is largely attributed to SiliconTwo, Korea’s largest K-beauty distributor, which has expanded aggressively via its Polish logistics hub. The company has since relocated to a logistics center three times larger than before and is reportedly still facing capacity limitations due to ongoing demand.

The U.K. is also emerging as a vital growth market, with $16 million in exports, up 68% YoY. English-speaking consumers, influenced by U.S. product reviews and influencer content, have contributed to the swift acceptance of Korean products. According to research firm Mintel, 21% of Gen Z consumers in the U.K. now use K-beauty products.

SiliconTwo has capitalized on this trend by opening its first flagship “MOIDA” store in London in December last year, followed by a second location this year. The company is also collaborating with Boots, a major U.K. beauty and health retailer, to expand its footprint. Simultaneously, major Korean brands like Laneige (under Amorepacific) and Belif (from LG H&H) have secured placements in British retail chains including Space NK and Boots, and online via GlamTouch.

Color cosmetics leader Clio is making moves as well. In Q1 2025, its sub-brands Peripera and Goodal entered OVS, Italy’s largest fashion retail chain. Additionally, Peripera became available at dm, Germany and Italy’s dominant beauty and personal care drugstore. Most recently, Clio secured a supply agreement to place Goodal products in all 1,300 stores of Kruidvat, a major drugstore chain spanning the Netherlands and Belgium.

Thanks to strategic partnerships and well-planned logistics, multiple Korean brands are now expanding rapidly throughout European offline retail. What once seemed like a digitally driven export wave has now evolved into a full-scale brick-and-mortar presence, signaling a mature and sustainable phase of globalization for K-beauty.

Top 10 K-Beauty Stocks to Watch in 2025 — Who’s Leading the Charge?

    As Korean pop culture continues to dominate globally, from music and film to skincare, interest in the K-beauty sector has soared not only among consumers but also among investors. With strong export performance, expanding brand influence, and growing demand in both Western and Asian markets, Korean cosmetics companies are being reevaluated as robust, long-term investment opportunities.

Instead of focusing on strict rankings, it’s more insightful to approach the K-beauty stock market through a sectoral lens, spotlighting 10 representative players showing notable growth potential in 2025:

1. Amorepacific & LG Household & Health Care: These two conglomerates lead the premium K-beauty movement. Amorepacific continues to invest in rebranding iconic lines like Sulwhasoo and Laneige, while LG H&H maintains a well-balanced portfolio spanning cosmetics, household goods, and beverages. ESG-focused campaigns and overseas market recovery, particularly in China and the U.S., have strengthened their positions.

2. Cosmax & Kolmar Korea: As manufacturing powerhouses specializing in ODM and OEM, these companies supply a wide range of products to major global beauty brands. Their technical expertise, expansive overseas infrastructure, and adaptability to trends make them resilient in a fast-changing market.

3. Clio & Tony Moly: Renowned for their color cosmetics, these brands resonate strongly with Gen Z consumers. Clio, through its Peripera sub-brand, is enhancing online commerce channels and rebranding to appeal to global digital shoppers. Tony Moly, leveraging trendy design and affordability, is rebuilding momentum, especially in budget-driven export markets.

4. Korea Cosmetic & Korea Cosmetic Manufacturers: These long-established mid-tier firms continue to support the industry’s backbone, focusing on B2B and OEM/ODM models. Their steady performance and network of retail channels position them as dependable players amid volatility.

5. Kolmar BNH & J2K Bio: Kolmar BNH, specializing in health supplements and functional beauty, is benefitting from the boom in wellness products. Meanwhile, J2K Bio is making waves with its focus on plant-based, sustainable beauty ingredients, tapping into the ESG-conscious consumer base and setting itself apart with innovative raw material development.

According to the Korea Cosmetic Industry Institute, Korea's beauty exports reached $7.8 billion in 2023 and are projected to exceed $10 billion by 2025. Growth drivers include China's post-pandemic reopening, increasing demand across Southeast Asia and North America, and the rise of men’s skincare and vegan/eco-friendly product lines.

However, the market isn’t without risks. Key considerations for investors include:
1. China Dependence: Overexposure to the Chinese market could hurt export figures during economic slowdowns.
2. ESG Performance: Today's consumers seek sustainable brands. ESG credibility is becoming a major purchasing, and investing, criterion.
3. Tech & Ingredient R&D: Competitive edge lies in innovation, particularly in raw material development and formulation technology.
4. Brand Storytelling: Brands that articulate clear, unique narratives often enjoy deeper consumer loyalty and global media traction.