K-beauty boom makes S.Korea the fourth-largest cosmetics exporter

Cosmetics industry sees continued export growth for two straight decades

K-beauty has emerged as a global trend, thanks to the development of innovative products and the flourishing Korean wave, or hallyu. In particular, cosmetics are among the export items showing a steady export growth trend since 2000. In 2020, South Korea became the fourth-largest export country for global cosmetics.

Source: Korea Health Industry Development Institute, Foundation of Korea Cosmetic Industry Institute

The demand for cosmetics products diminished globally during the pandemic as there were fewer occasions to wear make-up given guidelines on working from home, social distancing and wearing masks. Meanwhile, there was a rise in consumption focused on skincare products to address skin troubles that stemmed from wearing masks for long periods. This led to increased exports of facial masks and haircare products driven by increased homecare and self-care beauty routines.

Five countries, including China, accounted for 80% of total exports in 2020. Among them, exports to Greater China accounted for 50.3% while exports to Japan rose by 58.9% compared to the year-earlier period -- thereby demonstrating a strong export growth to key countries.

The Japanese market is displaying a sharp growth rate amid K-beauty's global growth trend. According to a report issued in 2020 by the Foundation of Korea Cosmetic Industry Institute, K-beauty has become popular in Japan thanks to the third hallyu wave, which has won over consumers in their teens and twenties.
Just a few years ago, Korean cosmetics products available in Japan were limited to specific categories such as color make-up items. But recently, products popular in South Korea such as skincare and basic make-up products have logged strong sales in Japan. In the past, K-beauty was introduced via Korean dramas, but now there are a variety of channels, such as online media outlets and Youtubers.
According to KOTRA's Japan trade division, products used by trend-sensitive Koreans are making their way to Japanese consumers via word-of-mouth through Youtube. Even products that are not yet available in Japan are being purchased via overseas delivery, with the high demand often leading to their official launches in that market.