South Korean cosmetics startups are capitalizing on booming U.S. online sales by expanding their physical retail footprint in the country’s largest consumer market. Despite looming tariff increases, these companies are confident that strong consumer demand will offset potential cost pressures.
Brands such as Tirtir, d’Alba, Torriden, and Beauty of Joseon are currently negotiating with major U.S. retailers including Sephora, Ulta Beauty, Costco, and Target to broaden their in-store availability.
An Byung-Jun, CEO of Tirtir, credited the global popularity of Korean culture—from PSY and BTS to hit dramas and films like Parasite—for paving the way. “Interest in Korea has surged, followed by strong demand for Korean beauty products, which combine high quality with more affordable prices compared to luxury Western brands like L’Oréal and Estée Lauder,” he said.
Tirtir’s cushion foundation, designed for darker skin tones, went viral online last year and will soon be available in select Ulta Beauty stores, with the company targeting a doubling of U.S. sales this summer.
While the U.S. currently imposes a 10% tariff on many Korean beauty imports, brands remain optimistic. By outsourcing production to efficient contract manufacturers like Cosmax and Kolmar, many maintain healthy profit margins, even with a planned tariff hike to 25% in July.
In 2024, South Korea surpassed Germany to become the world’s third-largest cosmetics exporter, trailing only France and the U.S. Exports, mostly driven by e-commerce, accounted for 80% of the nation’s $13 billion cosmetics output.
Olive Young, a leading Korean beauty retailer, plans to open its first U.S. store in Los Angeles this year. Jin Se-hoon, Executive Vice President of Global Platform Business at Olive Young, noted, “California is our largest customer base for our global online platform. Tariffs pose a burden, but they won’t undermine the popularity or value of Korean beauty products.”
Social media platforms like TikTok have been pivotal in K-beauty’s rise, often turning products viral before their international launch. However, experts warn that sustained growth will require bolstered physical retail presence amid intensifying competition and emerging budget brands.
Despite challenges, investor confidence remains high. Since its recent market debut, shares of d’Alba Global have more than doubled, reflecting strong optimism in the enduring K-beauty trend.
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