Despite a global economic downturn, ‘K-Beauty’ (Korean cosmetics) is experiencing significant growth, emerging as a flagship product representing Korea alongside K-Food. In particular, Korean cosmetics are no longer limited to Korean customers in the U.S., Europe, and beyond.

White, Black, Hispanic, and Asian consumers from various ethnic backgrounds are increasingly drawn to these products, driving market expansion. The recent surge in interest in Korea, fueled by the global popularity of the Netflix animated film K-Pop Demon Hunters (K-D-Hun), has also become a key factor boosting the appeal of K-Beauty.

In Southern California, Korean businesses such as Rodeo Cosmetics, Kim’s Electric, and J-Town are seeing a steady increase in non-Korean mainstream customers, serving as a major force in overcoming economic challenges. According to the Korea Food and Drug Administration, cosmetic exports for the first half of this year reached a record-high $5.5 billion, marking a 14.8% increase compared to the same period last year.

Exports to the U.S. and Japan, key markets alongside China, have seen significant growth. In the first half of this year, exports to the U.S. rose by 17.7% ($1.5 billion) and to Japan by 15.7% ($700 million) compared to the previous year. The U.S. market, in particular, has seen Korean cosmetics rise to the top import rank, with a notable milestone achieved last year when K-Beauty exports to the U.S. reached $1.71 billion, surpassing France’s $1.263 billion. Annual export figures have been: ▲2021: $9.2 billion ▲2022: $8.0 billion ▲2023: $8.5 billion ▲2024: $10.2 billion.

Excluding the 2022 decline due to a slowdown in the Chinese market, the trend has been consistently upward. Cosmetic exports are projected to exceed $10 billion this year, setting a new all-time high. Korea ranked third globally in cosmetic exports last year and continues to climb the ranks. France led with $23.25823 billion, followed by the U.S. with $11.19858 billion, and Korea closely trailing with $10.17731 billion.

This year, there is a strong possibility that Korea could overtake the U.S. to become the world’s second-largest cosmetic exporter. Driving the global K-Beauty craze are small and medium-sized Korean brands (indie brands). While major corporations like AmorePacific, LG Household & Health Care, and Olive Young leverage their capital and technology to expand, indie brands are credited with diversifying the K-Beauty market. For instance, Teetee’s ‘Mask Fit Red Cushion,’ a popular tinted cosmetic, gained attention on social media (SNS) through Black beauty creator Miss Dalci, who has 300,000 subscribers, as a cushion suitable for Black skin tones.

APR Medikube’s ‘Gel Mask’ pack drew widespread notice last year when Hollywood star Hailey Bieber posted a photo using the product on her SNS. The top 10 K-Beauty brands globally include Teetee and Medikube, alongside ‘Clear Rice Sunscreen’ by Joseon Beauty and ‘Lip Sleeping Mask’ by Laneige. Last month, The New York Times (NYT) reported a growing trend of ‘panic buying’ of Korean cosmetics among U.S. consumers, anticipating potential Trump-era tariffs, sparking widespread discussion. A Korean cosmetics industry insider remarked, “Even without targeted marketing toward mainstream society, word-of-mouth is driving a surge in young, diverse customers. We feel the Hallyu and K-Beauty wave every day in our stores.”