The Rise of Korean Cosmetics Exports
In 2022, the export revenue of d’Alba Global, a domestic cosmetics company, was only 19.1 billion Korean won, with overseas sales accounting for just 13% of total revenue. However, as its flagship products gained popularity in the U.S. and Japan through social media, the company’s export revenue skyrocketed to 326 billion Korean won in the last year, representing a 17-fold increase over three years. Similarly, The Founders Inc., which manages the cosmetics brand Anua, transitioned into a major export company where 85% of its sales now come from overseas after its “Korean cosmetics with low skin irritation” products began selling rapidly in the U.S. and Japan.
This is not an isolated success story. The number of domestic cosmetics export SMEs with annual export revenues exceeding 50 million dollars (approximately 74 billion Korean won) has increased more than fivefold in three years. As more companies target overseas markets early rather than remaining in the domestic market, the so-called “K-beauty” landscape is expanding significantly.
According to data received by the office of People Power Party Representative Ku Ja-keun from the Ministry of SMEs and Startups on the 26th, the number of cosmetics SMEs with exports exceeding 50 million dollars increased from three companies in 2022 to 17 companies in 2025. The total export revenue of these companies surged more than 11-fold during the same period, from 214.1 million dollars to 2.5125 billion dollars. Thanks to the growth of emerging exporters, overall export revenue also increased by 86% during this period, from 4.47 billion dollars to 8.32 billion dollars.
Export Companies Increasing, Growth Accelerating
Another example of this transformation is Goodai Global, which operates the global cosmetics brand Beauty of Joseon. In 2022, the company had sales of 41.3 billion Korean won. Its sunscreen product made a significant impact in the global market when it ranked first in the sunscreen category on U.S. Amazon. Last year, Beauty of Joseon’s sales surpassed 400 billion Korean won, nearly a tenfold increase in three years, with overseas sales accounting for 90%. In December last year, the company also received the “100 Million Dollar Export Tower” award.
Experts point to changes in the “K-beauty ecosystem” as a key factor behind the accelerating growth of emerging exporters. The shift from traditional offline distribution models to social media and Amazon has allowed even small and medium-sized brands with limited capital to enter overseas markets with a single “hit product.” Additionally, global-level ODM (Original Design Manufacturer) companies like Cosmax and Kolmar Korea, which handle product development and production, have created an environment where companies can challenge the global market quickly with just an idea. The natural increase in demand for K-beauty through K-content has further supported this growth.
Lee Kyung-min, chairman of the Korea Cosmetics Export Association, stated, “In the past, it took more than 10 years for companies to grow from small to mid-sized to large, but recently in the K-beauty sector, companies have emerged that have reduced this period by more than half.” He added, “Emerging brands that focus on marketing and distribution while reducing product development burdens through ODM companies are expanding their export scale in a short period by concentrating more on overseas exports than the domestic market.”
Decline in China, Rise in U.S. and Japan
The landscape of export destinations has also shifted. While China was the largest export destination for cosmetics in 2022, its export revenue decreased from 1.3 billion dollars to 1.1 billion dollars last year. In contrast, the U.S. overtook China with a nearly 2.7-fold increase from 600 million dollars to 1.6 billion dollars during the same period. The number of cosmetics SMEs exporting to the U.S. increased by 45%, from 2,044 companies in 2022 to 2,966 companies in 2025, while the number of companies entering the Chinese market grew by only 9%, from 1,835 to 2,000. During the same period, the number of companies entering the Japanese market increased by 35%, from 1,420 to 1,915.
This shift is due to the rapid expansion of “C-beauty” Chinese cosmetics in the local Chinese market, which has narrowed the space for K-beauty. Meanwhile, the popularity of K-beauty continues in the U.S., Japan, Europe, and other regions, leading to a steady stream of hit products. An industry source noted, “Newly emerging Korean brands are also prioritizing high-consumption countries like the U.S. and Europe over China.” “In these markets, Korean cosmetics are perceived as a cost-effective alternative that offers quality not inferior to domestic premium brands at much lower prices.”
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