K-Beauty exports have exceeded $1.5 billion for the first time in history. The widespread adoption of Korean skincare products abroad, particularly in the U.S., has expanded sales channels beyond online and specialty beauty stores to major retail chains. Domestic manufacturers have also secured production volumes through the traditionally slow fourth quarter.
According to the Ministry of Trade, Industry and Energy, the export value of cosmetics in September reached $1.51 billion, a 31.4% increase compared to the same month last year. This figure surpasses the previous record of $1.35 billion set in April and July, marking a new monthly high. Exports have increased steadily across major markets, including China, the U.S., ASEAN, and the European Union.
The demand for K-Beauty skincare in international markets has already been confirmed. Market research firm Circana reported that in the first quarter of this year, K-Beauty sales and volume in the premium retail market increased by 23% and 24%, respectively, compared to the same period last year. In the mass retail market, skincare sales growth was 35%, outpacing the 8% increase in makeup sales.
Interest in Korean skincare has expanded beyond niche consumer groups to everyday use. NielsenIQ analyzed that products like sheet masks, acne patches, and essences and serums have transitioned from niche items sought by specific consumers to mainstream skincare products. Ingredients such as mucin, centella asiatica, and polydeoxyribonucleotide (PDRN) have also gained recognition among the general public.
Domestic brands have introduced these ingredients in multifunctional products for cleansing, moisturizing, and sun protection. Cosrx has incorporated mucin, derived from snail secretion, into cleansers and essences, while MediCube has used PDRN in ampoules, masks, and sunscreens. The cumulative sales of MediCube's PDRN product line have surpassed 50 million units this year, with increased sales in key overseas markets like the U.S. and Japan contributing to this growth.
Local distributors are also expanding their offerings of Korean products. U.S. retailer Target announced earlier this year the largest expansion of K-Beauty products to date, and on September 10, it introduced Korean brands in over 600 stores and its online platform as part of the 'Target Beauty Studio.' This includes skincare brands like Dr. Melachin, Purito Seoul, and Ingredient Editor, as well as color cosmetics brands like Amuse and Rom&nd.
Domestic original design manufacturers (ODM) are receiving ongoing production requests from global clients. Major domestic production lines are operating at maximum capacity, and they have secured production volumes through the end of the year, even in the typically slow fourth quarter. Korea Kolmar reported a revenue of 430.4 billion won in the second quarter, a 31.2% increase from the same period last year. Lee Seung-eun, a researcher at Yuanta Securities, estimates that the revenue for domestic subsidiaries in the third quarter will rise by 34% year-on-year to 430 billion won.
However, there may be delays in reflecting some sales due to supply issues with tube packaging. Tube containers must be manufactured and approved according to brand-specific standards and designs, making it difficult to switch suppliers quickly. The researcher noted, 'Given the strong demand, any volumes not processed in the third quarter may carry over to fourth-quarter sales, depending on the supply situation for tubes.'
* This article has been translated by AI.
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