K-Beauty's growth formula is changing. Moving away from a structure centered on the Chinese market and large brands, small and indie brands are expanding in overseas markets such as the U.S. and Europe. This shift is creating a virtuous cycle in the industry ecosystem, where brands, manufacturing, and distribution grow together, enhancing K-Beauty's competitiveness.
According to the Ministry of Trade, Industry and Energy, cosmetic exports in the first half of this year (January to June) reached $6.997 billion (approximately 9.413 trillion won), marking a 27.2% increase compared to the same period last year. This figure represents the highest export level for three consecutive years since 2024. In July, exports totaled $1.351 billion (about 1.8175 trillion won), and in August, they reached $1.312 billion (approximately 1.765 trillion won), reflecting remarkable growth of 37.8% and 52.1%, respectively, year-on-year.
Notably, the shift in key overseas markets has become pronounced in recent years. The export structure, once centered on China, is rapidly transitioning to the U.S. and Europe. According to the Ministry of Food and Drug Safety, the proportion of cosmetic exports to China decreased from 32.8% in 2023 to 24.5% in 2024, and further to 17.7% in 2025. This decline is attributed to companies reducing their reliance on China following the deployment of THAAD and subsequent regulations affecting Chinese imports.
In contrast, the share of exports to the U.S. increased from 14.1% in 2023 to 18.7% in 2024, and reached 19.1% in 2025, surpassing China. In terms of export volume, the U.S. accounted for $2.184 billion last year, while China recorded $2.018 billion. Poland is also emerging as a new market; K-Beauty exports to Poland were only about $50 million in 2023, but are projected to grow to $130 million in 2024 and $280 million in 2025, entering the top nine export destinations.
An industry insider noted, "While export destinations were previously concentrated in China, they are now diversifying with a focus on the U.S. The recent overhaul of cosmetic regulations in China has increased the burden of required documentation and costs, leading more companies to consider targeting other markets with the same investment of time and resources."
Alongside market changes, the industry structure has also evolved. Previously, K-Beauty was dominated by large corporations like Amorepacific and LG Household & Health Care, which managed research, production, and distribution in a vertically integrated model. Products developed in-house were sold through their own brand shops, department stores, and duty-free shops.
Currently, an ecosystem where brands, manufacturing, and distribution share roles has become the focal point of growth. Brands concentrate on planning and marketing, while contract manufacturers like Cosmax and Kolmar Korea handle production. Distribution companies such as Olive Young connect various brands through platforms and local distribution networks. This shift has created a foundation for market entry without large-scale organizations, expanding the growth structure to include indie brands. This has led to an assessment that the entire industry is growing together, rather than just specific companies.
The government is also working to expand the industry base. The Ministry of Food and Drug Safety has launched the Global Cosmetic Regulatory Authorities Summit (GCORAS) to share regulatory systems and policies with 15 institutions across 12 countries, including ASEAN, the Middle East, and Latin America. This initiative aims to establish an international cooperation framework to support domestic companies' overseas expansion in line with the strengthening of global regulations on cosmetic safety assessments, manufacturing, and quality management standards (GMP), as well as halal certification.
An industry representative stated, "As awareness of K-brands and the national image has increased, overseas consumers are naturally encountering these products more often. With quality standards rising and competitive pricing, the market is steadily expanding not only in the U.S. but also in Southeast Asia."
* This article has been translated by AI.
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