(News Focus) K-beauty's 2nd boom: How indie brands, manufacturing powerhouses are rewriting the industry
By Kim Eun-jung
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)
At the center of K-beauty's latest boom are indie brands.
Unlike traditional cosmetics companies that relied heavily on department stores and offline retail channels, indie brands use social media, influencers and e-commerce platforms to reach consumers directly.
They can quickly test products, respond to trends and launch new items at a pace few legacy companies can match.
This shift has upended an industry once dominated by giants such as Amorepacific Co. and LG H&H.
Companies such as APR, d'Alba, Beauty of Joseon, Anua and SKIN1004 have rapidly expanded overseas through Amazon, TikTok Shop and other digital platforms.
Among them, APR stands out as perhaps the clearest symbol of K-beauty's new era.
The company, known for its Medicube skincare and at-home beauty devices, has become South Korea's largest beauty company by market capitalization at around 15 trillion won -- exceeding the combined market value of Amorepacific's 6.4 trillion won and LG H&H's 3.6 trillion won.
International markets, particularly the U.S., now account for a large portion of APR's sales, fueled by TikTok virality and expanding retail partnerships.
A visitor to Cosmo Beauty Seoul, a beauty industry exhibition, tests a skin care device at a booth in the COEX in southern Seoul on May 27, 2026. (Yonhap)
Behind the success of K-beauty's indie brands lies South Korea's world-class manufacturing ecosystem.
Unlike original equipment manufacturers (OEMs), which simply produce products according to customer specifications, original development manufacturers (ODMs) participate in everything from product planning and formulation development to manufacturing.
This allows cosmetics brands to focus on marketing, branding and distribution while outsourcing research and production to specialized manufacturers.
Industry leaders such as Cosmax and Kolmar Korea each generated more than 1 trillion won in ODM sales last year, underscoring the scale of Korea's manufacturing capabilities.
As global demand rises, Korean ODM companies have expanded production facilities in North America and Southeast Asia to better serve overseas customers.
Industry experts say the relationship between indie brands and ODM firms has created a virtuous cycle that accelerates innovation as fast-moving brands generate ideas and market feedback, while manufacturers rapidly turn those ideas into products.
"The current growth cycle of K-beauty differs from previous ones in that it is not centered on a particular country or a handful of brands," said Park Hyun-jin, an analyst at Shinhan Investment Securities. "It represents a structural phase of industry growth driven by the convergence of social media, cultural content, ODM manufacturing and direct-to-consumer platforms."
ejkim@yna.co.kr
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