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Korean cosmetics brands cash in on US demand

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Social media, K-pop boost interest in 'K-beauty'

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South Korea was third biggest cosmetics exporter in 2024

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Korean firms outperform French rivals in U.S. e-commerce

sales

growth

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Korean firms in talks with U.S. retailers to expand

physical

store presence

By Hyunsu Yim, Hyunjoo Jin

SEOUL, June 5 (Reuters) - Emboldened by roaring online

success in the U.S., South Korea's cosmetic startups are

expanding their bricks-and-mortar presence in the world's

biggest consumer market, confident their mass appeal will offset

the hit from tariffs.

Brands like Tirtir, d'Alba, Torriden, and Beauty of Joseon are

in talks with major retailers to stock their U.S. shelves,

company executives have told Reuters.

Korean beauty, or "K-beauty", products are able to compete

globally on quality, price and snappy marketing and have

benefited greatly from the success of the Asian export giant's

other consumer hits, namely its music, film and television.

"K-culture - things like PSY in the past, BTS, and then

Korean dramas and films like 'Parasite' - those really paved the

way," Tirtir CEO An Byung-Jun said.

"In the U.S. market, there was already growing interest in

South Korea. Then Korean cosmetics entered the scene. The

quality was good, but the prices were lower than the existing

luxury brands like L'Oreal or Estee Lauder."

Tirtir's profile shot up last year following the viral

online success of its cushion foundation shades designed for

dark skin. The product will be sold at some U.S. stores of Ulta

Beauty ( ULTA ) this summer, An told Reuters, adding it aims to

double U.S. sales this year.

Retailers in the U.S. from Sephora and Ulta Beauty ( ULTA ) to Costco

and Target ( TGT ) are in talks with Korean cosmetics

brands to launch sales in their physical stores, according to

Reuters' interviews with a dozen people including cosmetics

company CEOs, executives and industry experts.

They also expect Korean brands to weather tariffs better than

rivals thanks to higher margin business models. Many of them

outsource production to contract manufacturers like Cosmax

and Kolmar, dubbed the Foxconns of fast beauty, to

keep costs down.

South Korea overtook Germany to become the world's third-largest

beauty product exporter after France and the U.S. in 2024. Four

fifths of its $13 billion cosmetics output are for exports,

which have predominantly been driven by e-commerce sales.

Yuliet Mendosa, a 25-year-old visiting Seoul from America,

is a fan of K-pop boy band BTS, which led her to greater

interest in K-beauty products.

"They go straight to the point to fix what you need to fix

and your skin," she said at an Olive Young store.

CHANGING LANDSCAPE

The U.S. push comes at a tricky time for the world's big

exporters with President Donald Trump's sweeping tariffs

unsettling global trade.

But while the levies create uncertainty for Korea's beauty

exporters, strong demand is expected to mitigate some of this,

executives say.

South Korea's dominant beauty retailer Olive Young plans to

set up its first U.S. store in Los Angeles as early as this

year, Jin Se-hoon, Executive Vice President of the company's

global platform business, told Reuters.

"The U.S., especially California, has by far the most

customers for our global online shopping platform," Jin said.

He said Washington's tariffs were a burden but not enough to

hurt K-beauty's popularity and value-for-money proposition.

Their U.S. expansion, despite tariffs, also seeks to sustain

momentum after exports to China, the biggest overseas market for

K-beauty, fell due to geopolitical tensions and competition.

Skincare brand d'Alba, owned by d'Alba Global

and known for its vegan mist serum and sunscreens, is in talks

with Costco, Ulta Beauty ( ULTA ) and Target ( TGT ) for retail distribution, the

company said.

LVMH's cosmetics chain Sephora plans to launch two

new Korean brands Torriden and Beauty of Joseon this summer,

according to a Sephora spokesperson.

Costco, Target ( TGT ) and Ulta did not respond to requests for

comments.

Tirtir's An said the baseline 10% tariff that the U.S. has

already imposed is "endurable" although the planned 25% tariff

on South Korean products due in July may force the company to

raise prices "a little bit."

Seoul, a major U.S. ally, is seeking tariff exemptions in trade

talks with Washington.

The Founders--the maker of Anua skincare products, which hit

Ulta Beauty ( ULTA ) shelves this year--also have more room to absorb

higher tariffs than rivals, its strategy team leader Jung Jun-ho

said. The company posted an operating profit margin of over 30%

last year.

NICHE BRANDS

South Korea replaced France as the biggest cosmetics

exporter to the U.S. in 2024, according to official data, driven

by online sales through Amazon ( AMZN ).

The top five Korean cosmetics brands in U.S.

e-commerce--which include Beauty of Joseon, Medicube and

Biodance--saw online sales grow 71% on average over the past two

years, outperforming the overall U.S. market's 21% growth,

according to Euromonitor data.

The top five French brands--which include L'Oreal Paris,

Dior and Lancome--posted 15% growth over that period.

Social media has played a big part in Korea's success.

"Nowadays a single viral TikTok video or influencer

endorsement can turn a product into a global bestseller before

it even launches outside Korea," said South Korea-based beauty

marketer Odile Monod.

But longer-term success will require increased physical

store sales, said Jason Kim, CEO of cosmetics distributor

Silicon2.

There are already signs of growth plateauing for some

companies, such as startup COSRX, now part of Korean cosmetics

giant AmorePacific, as competition heats up and

cheaper alternatives emerge, analysts said.

For now, investors remain upbeat about Korean potential,

with shares of d'Alba Global more than doubling since their

debut last month.

"The K-beauty trend is strong," Silicon2's Kim said. "But

indie brands will face challenges too."