K-Beauty Expands Overseas... U.S. Market Share Rises [Click e-Stock]

Steady Growth Amid Declines in Major Countries
Securing Overwhelming No. 1 Position in U.S. Market... Global Market Share on the Rise

On the 13th, customers, mostly foreigners, are selecting cosmetics at a cosmetics shopping mall in Myeongdong, Seoul. Photo by Younghan Hur younghan@

The Korean cosmetics industry is accelerating its push into the global market. Despite the overall sluggish U.S. cosmetics import market, Korean companies are increasing their market share.

On May 7, Hanwha Securities provided this analysis of the Korean cosmetics industry. In March, U.S. cosmetics imports totaled approximately $660 million, up 3% year-on-year. While the year-over-year growth rate shifted from -17% in January to +1% in February, indicating a return to growth, the total U.S. cosmetics imports in the first quarter amounted to $1.74 billion, down 5% from the same period last year. This decline was mainly due to continued weakness among major import partners such as France, Italy, China, and Japan.

In contrast, imports of Korean cosmetics showed robust performance compared to the overall market. As of March, imports reached $160 million, a 16% increase year-on-year. For the first quarter, Korean cosmetics imports rose 7% from a year earlier, bucking the trend of an overall market contraction.

Korean cosmetics also stand out when compared to other countries. France (-19%), Italy (-23%), China (-12%), and Japan (-18%)—all leading cosmetics exporters—experienced negative growth. The U.S. import market appears to be shifting from a focus on European premium brands to Korean brands and some neighboring North American countries.

Hanwha Securities believes that Korean cosmetics have not only reached the top tier in the U.S. import market but have established an absolute lead. In both January and February of this year, Korea accounted for about 23% of U.S. cosmetics imports, and this figure rose to 24% in March.

Except for February, when there were fewer business days, Korea's cosmetics export value has set a new record every month. Exports to the U.S. also showed solid growth, rising 26% in March and 8% last month.

Yoojung Han, a researcher at Hanwha Securities, stated, "Achievements in the U.S. market are not only proof of brand product strength and mass appeal, but also serve as a basis for expanding into new markets such as Europe, Japan, and Southeast Asia. This means much more than just increased sales," adding, "With proven results and capabilities in the U.S., Korea's further expansion as a cosmetics powerhouse and its rising share of the global market will continue."

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