South Korea, China Beauty Brands Expand Rapidly in the West

Asian beauty brands, particularly from South Korea and China, are accelerating their global expansion, capturing a share of the US$677 billion global market in Western economies through innovative product development, savvy marketing, and strategic investments.

South Korea’s K-beauty market reached US$14.7 billion in 2024 and is projected to more than double to US$31.8 billion by 2033, driven by an estimated CAGR of 9%. While domestic markets in Korea, China, and Japan show early signs of saturation, international demand—especially from the United States and Europe—offers ample growth opportunities.

After a funding dip in 2024 to under US$1 million, the K-beauty startup sector rebounded in early 2025, raising nearly US$5 million in the first four months, signaling renewed investor confidence in the global scalability of these brands.

K-beauty’s strongest gains are visible in the United States, where Korean beauty exports rose 53% year-on-year in 1Q25. The United States now accounts for 28% of Korea’s total beauty exports, up from 17% two years ago. Despite tariffs and geopolitical uncertainty, Korean brands are securing shelf space at major retailers like Ulta, Target, and Sephora. Key players such as TIRTIR, Beauty of Joseon, and d’Alba are expanding distribution, while Olive Young, Korea’s leading beauty chain, plans to open a flagship store in Los Angeles.

The UK is also witnessing increased physical presence. Chains like Boots and Superdrug are expanding their Korean skincare offerings, and independent retailers such as Moida and PureSeoul are establishing brick-and-mortar stores in central London. These expansions signal that the trend is evolving into a broader market shift with long-term potential.

Several factors are driving Asian beauty brands into the Western mainstream. Social media, particularly TikTok, is the most powerful accelerator. TikTok-driven product discoveries now influence 34% of beauty purchases, with Gen Z accounting for over half of that traffic. Viral trends like “glass skin” and 10-step skincare routines have boosted searches for “Korean skincare” by 168% year-on-year.

Product innovation is another key lever. Asian brands are at the forefront of ingredient experimentation, utilizing unconventional ingredients like snail mucin, PDRN (a DNA derivative from salmon), and heartleaf extract. Unique formulations like toner pads, essences, and hydrogel masks are driving adoption, with most best-selling products priced under US$25.

Cultural alignment with consumer values is also a factor. Millennials and Gen Z prioritize clean ingredients, customization, and sustainability, values embedded in many Asian beauty brands. Inclusivity is another strength; for instance, TIRTIR expanded its foundation shade range from three to 40 to meet diverse consumer needs.

With domestic markets maturing, Chinese beauty giants like Proya and S’Young are looking outward. These companies are acquiring or investing in premium Western fragrance and skincare brands to establish a foothold in developed markets and diversify their revenue streams. Proya, which recently surpassed ¥10 billion in revenue, exemplifies this trend of outbound Chinese consumer companies pursuing global M&A.

Western entrepreneurs are also capitalizing on the trend. Australia’s W Cosmetics, initially focused on Asian beauty imports, now operates 38 stores and generates over US$200 million annually, with 16 more outlets planned for 2025.

Despite the growth, challenges remain. The influx of SKUs could lead to market saturation and overwhelm consumers. Western regulators may scrutinize certain Asian ingredients more rigorously, adding compliance hurdles. Additionally, trade tensions and tariffs could disrupt supply chains and pricing models.