In 2024, South Korea achieved a significant milestone in its K-beauty sector, seeing a remarkable increase in exports to the United States and Japan while exports to China fell, highlighting a shift in global trade dynamics. The Ministry of Food and Drug Safety (MFDS) reported that for the first time ever, exports in K-beauty products surpassed the impressive mark of USD 10 billion.
K-Beauty Export Growth
Oh Yu-kyoung, the MFDS Commissioner, credited the industry’s relentless efforts in attaining this historic export value, especially given the increasing regulations surrounding cosmetics globally.
Statistics show that K-beauty exports surged by 20.6%, climbing to USD 10.2 billion in 2024 from USD 8.46 billion the year before. This new record outstrips the previous high of USD 9.2 billion set in 2021.
While China remained the top destination for South Korean cosmetic exports with a value of USD 2.5 billion, making up 24.5% of total exports, its share has started to shrink, dipping below 20% for the first time since 2021. Most product categories experienced a downturn in exports to China, particularly basic skincare, which saw a significant 11% decline, falling from USD 2.16 billion to USD 1.92 billion. Conversely, color cosmetics saw a slight uptick, increasing by 5.7% from USD 300 million to USD 320 million.
Shifts in Export Markets
In stark contrast, exports to the United States exploded by 57%, reaching USD 1.9 billion and showcasing growth across nearly every product category. Basic skincare led this charge, boasting a 66.8% rise to USD 1.4 billion, while color cosmetics climbed by 25.8% to USD 260 million. Notably, personal care products experienced remarkable growth, more than doubling to USD 90 million—an impressive leap of 122.2%.
Japan also contributed significantly to the K-beauty boom, with exports growing by USD 230 million or 29.2%, breaking the billion-dollar threshold for the first time.
Other noteworthy markets for K-beauty products included Hong Kong, Vietnam, Russia, Taiwan, Thailand, the United Arab Emirates (UAE), and Singapore. Notably, the UAE saw its exports escalate from USD 90 million to USD 170 million, marking its debut among the top ten export destinations.
Future Directions for K-Beauty
When examining the specifics of export categories, basic skincare led the way with sales totaling USD 7.67 billion, reflecting a 20% growth from the previous year. Color cosmetics followed closely, reaching USD 1.35 billion with a 29% increase. Personal cleansing products showed the highest percentage growth at 30.7%, now accounting for USD 470 million.
Looking toward the future, the MFDS committed to bolstering the K-beauty industry in 2025 by enhancing policies and diversifying export strategies. The Commissioner mentioned plans to foster international collaboration through regulatory initiatives, aiming to assist companies in strengthening their global competitiveness, particularly focusing on safety assessments in critical markets like China and the United States.
Source: Cosmeticsdesign-asia.com