South Korea has become the largest exporter of cosmetics to the U.S. market, ahead of France. This is reported in a press release from the US International Trade Commission.
At the same time, the total supply of Korean cosmetics increased to a record $10.2 billion, sparking interest from L'Oreal SA and Archimed SAS in Korean assets in the personal care sector. In 2024, the French investment company Archimed acquired Jeisys Medical Inc., a technology company for aesthetic skin care.
In 2024, the Korean cosmetics industry concluded 18 deals worth 2.3 trillion won ($1.6 billion) amid an increase in transactions in the M&A sector. Korean brands account for about 22% of foreign cosmetics products in the United States and about 40% in Japan.
COSRX Inc., acquired by Korean cosmetics company Amorepacific Corp. In 2023, it provided 60% of revenue in the USA and Europe, and the popularity of the facial serum developed by the company is rated as No. 1 on the platform. Amazon.com .
Korean startups in the cosmetics industry are attracting interest from major companies. In particular, Bain Capital has extensive experience in selling shares in the Korean cosmetics segment, having sold shares in botulinum toxin manufacturer Hugel Inc. for $1.5 billion and in cosmetics company Carver Korea Co. for $2.7 billion.
South Korean companies view the American market as a "land of opportunity" amid the decline in consumption in China and rely on online marketing through TikTok and Reddit, and partnerships with Costco Wholesale Corp. and Amazon.com Inc. In particular, Kolmar Korea Co. plans to launch a second factory in the United States, and CJ Olive Young offers marketing advice to local startups and plans to open its first store in the United States, with sales growing by 140% in 2014.
The optimistic forecasts of South Korean companies are at odds with the challenges faced by global brands, including Estee Lauder Co. and Shiseido Co., which forecast a drop in net sales in March 2025.
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