Value-for-Money K-Beauty Products Flying Off the Shelves in the Global Market [Weekend Money]

Korean Cosmetics Highlight Functional Value at Affordable Prices
APR and Silicontwo Named Top Picks

K-Beauty is rapidly expanding its influence in the global market. Driven by export growth and shifting consumer trends, it is expected that next year, K-Beauty will surpass a 5% global market share and achieve exports of USD 16 billion (approximately KRW 24 trillion).

Kyoseok Lee, a researcher at Shin Young Securities, stated in the recent report "K-Beauty: A Rational Choice, Not Just a Fad," that “the global export growth of Korean cosmetics should be viewed as a structural change rather than a temporary trend.” Lee explained, “Whereas consumption in the cosmetics market was previously centered on luxury brands, there is now a rapid spread of consumption that prioritizes value for money.” As the quality gap between high-end and mid-to-low-priced products has narrowed compared to the past, consumers are increasingly choosing products based on performance and reasonable price rather than brand. As a result, Korean cosmetics, which offer high quality at reasonable prices, are being recognized by global consumers as an attractive new alternative.

Preference for Value-for-Money and High Quality... Product Strategy with Storytelling Also Plays a Role

In particular, as demand for “value-for-money, high-quality” products is increasing among the global middle-class consumer segment—who make up more than half of the world’s population—K-Beauty’s competitiveness is becoming even more prominent. Korean cosmetics, which combine accessible pricing and stable quality, are regarded as a suitable product lineup for evolving consumer trends. Korean brands’ toners, essences, and sun care products are quickly gaining popularity among overseas consumers as alternatives to Western luxury brands, offering lower prices but emphasizing functional ingredients and skin care effects. Multi-step skincare routines and skin barrier-focused skincare methods are being highlighted as new regimens in the global market, further enhancing the competitiveness of Korean cosmetics.

Product strategy is another area where Korean cosmetics stand out. By combining storytelling about functional ingredients and skincare methods, Korean cosmetics have succeeded in attracting global consumers’ attention. Functional ingredients commonly used in Korean cosmetics—such as Centella Asiatica extract, PDRN, and snail mucin filtrate—are gaining recognition in the international market and are becoming global trends. Ingredients and skincare methods that were once unfamiliar are now accepted as “new experiences,” which is leading to simultaneous growth in brand awareness and market influence. According to researcher Lee, this characteristic is significant because it means Korean cosmetics have secured competitiveness not only through price but also in terms of product planning and content.

"APR and SillyconTwo are Top Picks"

Lee analyzed that, as the business outlook for Korean cosmetics improves, investment strategies can largely be divided into three categories: brand companies, manufacturing companies (ODM), and distribution companies.

First, among brand companies, those that have established an early presence through marketing are likely to have stronger competitiveness. For ODM companies, performance is typically stronger in the first half of the year and growth slows in the second half, so the emergence of new hit products (SKUs) is a critical factor. For distribution companies, those with global sales networks may be valued higher than general distribution businesses.

Lee named APR as the top pick within the sector. APR is recognized for leading the market by strengthening ingredient-centric product planning and marketing in line with the growing derma-cosmetics trend. Another strength is that the company has a portfolio with multiple successful products, rather than relying on a single hit product.

SillyconTwo was selected as the runner-up. As it distributes various hit brands and products simultaneously, it stands to benefit from the expansion of K-Beauty exports. In particular, it is evaluated as a company capable of serving as a core global distribution platform for K-Beauty in new markets such as Europe, the Middle East, and Latin America.

This content was produced with the assistance of AI translation services.