K-Beauty Surges: New 1000 Billion-Won Firms and Global Expansion
Creatrip Team
2 months ago
K-beauty (Korean beauty) is booming as more companies surpass 1000 billion won in sales and exports set new records. Cosmetic manufacturers, including ODM/OEM firms, are expanding product lines from basic skincare to color makeup and haircare, and building new factories to meet rising orders. The number of firms with annual sales over 1000 billion won rose from 29 in 2023 to 36 last year and is projected to reach 42–45 this year, a nearly 44% increase over two years. Major players (LG Household & Health Care, Amorepacific) share the market with rising brands (e.g., Imiin, Wyatt, TonyMoly). M&A activity and private equity interest have surged, and exports are on track to hit about $11 billion this year, driven by a 15.4% increase in cosmetics exports in the first three quarters. To sustain growth, companies are diversifying into color cosmetics and hair/scalp products and expanding sales beyond traditional markets (US, Japan) into Southeast Asia, Europe, the Middle East, and Latin America. Notable moves include haircare brand Wyatt entering global retailers, rom&nd (color cosmetics) selling strongly on TikTok in the US, vegan brand Dear Dahlia expanding in Europe, and CJ Olive Young accelerating overseas store openings (plan to open four stores in the US). (ODM: original design/manufacturing by a contractor; OEM: manufacturing under another brand)
