(News Focus) K-beauty's 2nd boom: How indie brands, manufacturing powerhouses are rewriting the industry

SEOUL, June 17 (Yonhap) -- South Korea's cosmetics industry is in the midst of a second global boom, powered not by legal conglomerates but by fast-moving indie brands, sophisticated manufacturers and the growing influence of social media.

Once dominated by legacy giants such as Amorepacific Co. and LG Household & Healthcare Co. (H&H) and driven by demand in China, the K-beauty industry is now expanding its foothold in the United States and Europe on the back of a new generation of players.

As a result, South Korea has become the world's second-largest cosmetics exporter after France and beauty products are the country's top consumer export item.

Foreign travelers select cosmetic products at Olive Young's store in Seoul on Nov. 24, 2025. (Yonhap)

The latest figures highlight just how rapidly K-beauty is expanding.

Combined exports of Korean beauty products reached US$5.6 billion in the January-May period, up from $4.6 billion a year earlier, according to the Ministry of Trade, Industry and Energy.

The surge follows a record-breaking year in 2025, when South Korea's cosmetics exports climbed to an all-time high of $11.4 billion, after first surpassing the $10 billion mark in 2024.

One of the biggest changes in K-beauty's rise has been the diversification of export markets.

Once driven largely by Asian consumers and fans of K-pop and dramas, Korean cosmetic products are increasingly winning over mainstream shoppers worldwide.

In 2025, the U.S. became South Korea's largest cosmetics export market for the first time, with shipments reaching $2.2 billion, surpassing China, once the dominant destination for Korean cosmetics.

Europe is emerging as another growth engine. Cosmetics exports to Europe jumped 60 percent on-year through April, reaching $820 million, even surpassing the U.S. market during the period.

Industry watchers are increasingly optimistic that the current boom is not a short-lived trend but a structural shift, as the momentum shows no signs of slowing.

"While China was the largest export market for Korean cosmetics in 2024, the U.S. became the top destination in 2025, and Europe is expected to take the lead in 2026. This reflects the dynamic nature of the K-beauty industry," said Park Jong-dae, an analyst at Hana Securities. "At the current pace, South Korea could even challenge France for the top spot within the next four to five years."

A pedestrian walks past a cosmetics shop in Myeongdong in downtown Seoul on Dec. 21, 2025. (Yonhap)

Unlike traditional cosmetics companies that relied heavily on department stores and offline ret