K-beauty's US crown under tariff strain in 2 minutes
Korean beauty, born from local culture, is now soaring on a global scale.
Its triumph is most vividly illustrated in the US, where it became the top cosmetics exporter in 2024, surpassing former leader France for the first time.
Despite this meteoric rise, however, a question remains: How far can K-beauty go at this pivotal juncture, now clouded by looming tariffs?
Success formula
• Global K-content wave meets lab-developed innovation, popularized through e-commerce
• Localized, high-quality products with clean formulations tailored for US consumers
• Strong foothold on Amazon, with competitive pricing fueling demand
• Viral marketing on TikTok and Instagram, opening new channels like TikTok Shop
• Expansion into major US retailers: Sephora, Ulta Beauty, Walmart and Target
Navigating US regulations
• Compliance with the Modernization of Cosmetics Regulation Act rules for Food and Drug Administration registration, product listing and labeling
• Dedicated compliance teams at beauty giants and major original design manufacturers
• Successful product testing and certification for over-the-counter sunscreens
Tariff headwinds
• Delayed 25 percent tariff set for July 9 alongside existing 10 percent tariffs
• Growing concerns over won-dollar exchange rate and its impact on import prices
• Expansion of US-based production by companies such as Kolmar Korea and Cosmax
• Increased US investments by Amorepacific and LG H&H, including LG's $130 million capital infusion and Amorepacific's US facility plan
What's next?
• Long-term strategy emphasizing technological leadership, product innovation
• Shift in innovation focus to AI-powered devices and next-generation beauty technology
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