K-Beauty Surpasses U.S. in Global Exports, Climbing to No.2 Worldwide
As of April 2025, South Korea's beauty industry has achieved a new global milestone. According to the Korea International Trade Association, from January to April this year, Korea’s cosmetics exports totaled $3.6 billion, narrowly surpassing the U.S. at $3.57 billion for the first time. Though the U.S. maintained a lead until Q1, the tables turned in April, signaling a new phase for K-Beauty in the global market.In 2023, Korea overtook Germany to become the world’s third-largest cosmetics exporter, thanks to an impressive 20.3% year-over-year growth, while Germany’s exports declined by 6.9%. France and the U.S. remained ahead at the time, but Korea's upward momentum suggests it may soon become a top-tier beauty powerhouse, only trailing France.
Notably, Korean beauty products have become increasingly prominent in North America and are now expanding rapidly across Europe and the Middle East. In the first five months of 2025, exports to Poland soared 121% year-over-year, with similar growth observed in France (106%), Ireland (88%), Belgium (51%), Italy (45%), and Denmark (38%). Shipments to the United Arab Emirates also rose 74%.
Brands like APR and The Founders are reaping the rewards of this diversification. APR's European orders in April and May alone were 2.1 times the volume of Q1. Meanwhile, The Founders’ brand “Anua” entered Amazon UK in January and expanded to Amazon Germany, Australia, and Dubai in February. Anua also significantly increased its offline retail presence, from 120 to 470 Boots stores in the UK. Clio’s brand Peripera entered Italy’s OVS and DM retail chains, while Goodal is now available in Kruidvat stores across the Netherlands and Belgium.
However, a looming threat lies ahead: the potential reinstatement of U.S. tariffs on Korean cosmetics. If enacted as announced, tariffs could reach up to 25% (10% base tariff + 15% country-specific). Industry insiders warn that even though K-beauty products are relatively affordable, this could challenge their global price competitiveness. Still, some argue that given the modest per-unit price increases, consumer resistance may remain limited compared to high-end Western brands.
The sharp rise in closures is largely attributed to the low entry barriers in the cosmetics industry. Many companies have rushed into the market relying on outsourced production via ODM (Original Design Manufacturing), launching brands without sufficient R&D or differentiation. In 2023, the number of licensed cosmetics vendors (known as “responsible sellers”) stood at 27,932, nearly double the 2019 figure of 15,707. Although slightly down from 2022, this drop reflects a government-led license cancellation drive following legal revisions, not a real market correction.
As many startups depend solely on marketing without long-term product development or branding strategies, they often struggle to sustain sales amidst rising competition. Even mid-sized enterprises with solid capital have faced difficulties. Take Coway, for instance: its cosmetics brand “Re:NK,” launched in 2010, once posted KRW 83.1 billion in sales in 2015. But by 2023, sales had plummeted to just KRW 23.4 billion. Last year, Coway spun off its cosmetics business into a subsidiary, “Re:NK BNH,” and later merged it with Healer B, a joint venture with Netmarble. While they continue promotional efforts, such as hiring K-pop group The Boyz as brand ambassadors, industry watchers speculate a possible selloff is imminent.
Meanwhile, companies from other sectors, such as education and home appliances, have also been entering the cosmetics business. In 2025, Ice Cream Media and Cuckoo Homesys added cosmetics and skincare production to their business portfolios. While diversification is common among Korean mid-sized firms, success in the crowded beauty space remains elusive without a clear brand identity or competitive edge.
This change significantly reduces administrative burden, especially for small and medium-sized brands aiming to expand into Free Trade Agreement (FTA) countries. With this revision, the number of items eligible for simplified certification has increased from 326 to 343. However, businesses must verify whether each item qualifies under the respective FTA agreements.
Authorities note that more such adjustments are expected in the future, with plans to extend simplifications to other promising export items. This development not only streamlines export procedures but also reinforces national-level support for the K-Beauty sector as a core cultural export industry.
Coupled with the ongoing expansion into Europe and the Middle East, such regulatory improvements are expected to boost the structural sustainability of Korean beauty exports. For brands navigating complex import requirements in different regions, the ability to quickly and credibly demonstrate Korean origin could be a vital advantage in maintaining and growing global market share.
Brands like APR and The Founders are reaping the rewards of this diversification. APR's European orders in April and May alone were 2.1 times the volume of Q1. Meanwhile, The Founders’ brand “Anua” entered Amazon UK in January and expanded to Amazon Germany, Australia, and Dubai in February. Anua also significantly increased its offline retail presence, from 120 to 470 Boots stores in the UK. Clio’s brand Peripera entered Italy’s OVS and DM retail chains, while Goodal is now available in Kruidvat stores across the Netherlands and Belgium.
However, a looming threat lies ahead: the potential reinstatement of U.S. tariffs on Korean cosmetics. If enacted as announced, tariffs could reach up to 25% (10% base tariff + 15% country-specific). Industry insiders warn that even though K-beauty products are relatively affordable, this could challenge their global price competitiveness. Still, some argue that given the modest per-unit price increases, consumer resistance may remain limited compared to high-end Western brands.
Domestic Closures Persist Amid Global K-Beauty Boom
Despite the booming export figures, South Korea's domestic cosmetics market is experiencing a wave of closures. According to the Ministry of Food and Drug Safety, both production and exports reached record highs in 2023, with total production valued at KRW 17.5 trillion and exports at $10.2 billion, up 20.9% and 20.3% year-over-year respectively. However, the number of cosmetics companies shutting down is also soaring. In 2023 alone, 8,831 cosmetics license holders closed operations, nearly ten times the number in 2020 (882 closures).The sharp rise in closures is largely attributed to the low entry barriers in the cosmetics industry. Many companies have rushed into the market relying on outsourced production via ODM (Original Design Manufacturing), launching brands without sufficient R&D or differentiation. In 2023, the number of licensed cosmetics vendors (known as “responsible sellers”) stood at 27,932, nearly double the 2019 figure of 15,707. Although slightly down from 2022, this drop reflects a government-led license cancellation drive following legal revisions, not a real market correction.
As many startups depend solely on marketing without long-term product development or branding strategies, they often struggle to sustain sales amidst rising competition. Even mid-sized enterprises with solid capital have faced difficulties. Take Coway, for instance: its cosmetics brand “Re:NK,” launched in 2010, once posted KRW 83.1 billion in sales in 2015. But by 2023, sales had plummeted to just KRW 23.4 billion. Last year, Coway spun off its cosmetics business into a subsidiary, “Re:NK BNH,” and later merged it with Healer B, a joint venture with Netmarble. While they continue promotional efforts, such as hiring K-pop group The Boyz as brand ambassadors, industry watchers speculate a possible selloff is imminent.
Meanwhile, companies from other sectors, such as education and home appliances, have also been entering the cosmetics business. In 2025, Ice Cream Media and Cuckoo Homesys added cosmetics and skincare production to their business portfolios. While diversification is common among Korean mid-sized firms, success in the crowded beauty space remains elusive without a clear brand identity or competitive edge.
Simplified Origin Documentation to Aid Export Growth
In a move to support exporters, Korea’s Customs Service revised its trade regulation on June 30, 2025, easing origin verification requirements for six cosmetics categories, including lipstick, eyeshadow, mascara, and sheet masks. Previously, exporters had to prepare up to eight documents, such as manufacturing process charts, raw material statements, and origin proof sheets. Now, they only need to submit a single “Domestic Production Confirmation” form.This change significantly reduces administrative burden, especially for small and medium-sized brands aiming to expand into Free Trade Agreement (FTA) countries. With this revision, the number of items eligible for simplified certification has increased from 326 to 343. However, businesses must verify whether each item qualifies under the respective FTA agreements.
Authorities note that more such adjustments are expected in the future, with plans to extend simplifications to other promising export items. This development not only streamlines export procedures but also reinforces national-level support for the K-Beauty sector as a core cultural export industry.
Coupled with the ongoing expansion into Europe and the Middle East, such regulatory improvements are expected to boost the structural sustainability of Korean beauty exports. For brands navigating complex import requirements in different regions, the ability to quickly and credibly demonstrate Korean origin could be a vital advantage in maintaining and growing global market share.
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