K-Beauty & Health Industry Issues
Over the past week, several notable developments have emerged across the domestic and global beauty and health industries, marking significant milestones for Korean cosmetics.
USD 11.4 Billion in Exports: A New Record
The official export figure for last year announced by Korea's Ministry of Trade, Industry and Energy.
Following exports of USD 9.2 billion in 2021 and USD 10.2 billion in 2024, the industry has continued to set new records. Beyond headline figures, the substance of growth has been solid. K-beauty has shown strong momentum in new regions such as the Middle East, Europe, and Oceania .
Notably, 91% of exporters are SMEs (Small and Medium-sized Enterprises). What once seemed like a distant dream—the era of 10,000 beauty export companies—now appears increasingly within reach.
China remains a key variable. Following recent summits, expectations are growing regarding how the improving diplomatic climate may affect K-beauty's performance, particularly in areas like dermacosmetics and raw materials.
The Rise of Dermacosmetics & Smart Consumers
As consumer demand increasingly focuses on ingredients and efficacy, dermacosmetics —integrating advanced dermatological science—are emerging as a new growth engine.
Recent analyzes from Amazon (US), Qoo10 (Japan), and Olive Young (Korea) show that skin booster ingredients such as exosomes and PDRN recorded the highest growth rates.
Top 10 Searched Keywords by Global Formulators:
- Anti-aging
- Moisturizing
- Anti-acne
- Brightening
- Hair conditioner
- Anti-wrinkle
- Anti-inflammatory
- Soothing
- Firming
- Hair growth
The overwhelming emphasis on anti-aging and soothing functions suggests that global consumers continue to prioritize long-term skin health.
Industry Moves: M&A and Market Strategy
Taekwang Industrial is aggressively expanding into beauty and health via M&A, acquiring Dongsung Pharmaceutical to build a comprehensive platform spanning cosmetics and healthcare.
Meanwhile, LG Household & Health Care has implemented price increases of roughly 5.6% due to rising raw material costs. In this climate, small brands with strong identities and fan communities are gaining noticeable traction compared to mass-market giants.
Topic-Based Summary
- 1. K-Beauty Exports Korea's cosmetic exports reached an all-time high, overtaking France to rank first in the US market. Strong growth in Australia driven by skincare.
- 2. Consumer Trends Foreign tourists are shifting from simple shopping to dermatology and healthcare experiences ("Glowmads").
- 3. Rise of Dermacosmetics Dermacosmetics are emerging as a central growth axis, with record production of products for skin barrier repair and wrinkle improvement.
- 4. Technology & R&D Development of next-generation emulsion technologies and research into safety testing methodologies.
- 5. Corporate Strategy Strategic divergence: Amorepacific and LG H&H are emphasizing derma beauty vs. daily consumer goods.
- 6. Retail Shifts Intensifying competition among beauty select shops and value-driven brands gaining traction at retailers like Daiso.
- 7. Small Brands Resurgence First-generation road-shop brands gaining renewed attention globally via influencers; small brands growing through D2C channels.
- 8. IPO & Investment K-beauty companies are accelerating IPO preparations amid increasing sales.
- 9. Intellectual Property Sharp rise in overseas trademark squatting and unauthorized use of K-brands is a growing concern.
- 10. Healthcare Trends Rising interest in functional ingredients for stress relief and expansion of health functional foods into convenience stores.
- 11. Global Platforms Margin pressure on Korean exporters due to unit price reduction demands from global e-commerce platforms.
