From social media pattern to financial powerhouse

[ad_1] Suranjana Tewari Asia Enterprise Correspondent, Seoul, South Korea

Watch: Korean skincare is a multi-billion greenback trade - what makes it so nice?

Who would have thought serums infused with snail mucin - the sticky substance they secrete - would turn into part of skincare routines all over the world?

Effectively, it is occurred - and the gooey elasticity is essential, in keeping with a viral TikTok problem selling the serum. It made its producer, the small South Korean label CosRX, go international. It's now owned by Amorepacific, the nation's largest cosmetics firm.

The speedy unfold of that sticky serum tells you simply how wildly profitable Okay-beauty has turn into. Fuelled by viral content material and tendencies, it is likely one of the largest industries in South Korea, the place the stress to look nearly flawless has at all times been large in a extremely aggressive society.

The home market alone was valued at about $13bn (£9.6bn) in 2024, with gross sales of some merchandise anticipated to develop at double-digit charges. And the remainder of the world is simply as obsessive about Okay-beauty - which is probably unsurprising given it is a part of the Hallyu, or Korean Wave, which has made Okay-Pop and Okay-dramas a world phenomenon.

Okay-beauty manufacturers now occupy complete sections at international retailers - from Sephora to Boots to Walmart. Within the first half of 2025, South Korea overtook France, the birthplace of recent cosmetics, to turn into the world's second-largest exporter of magnificence merchandise, after america.

Seek for "Korean skincare" on TikTok, Instagram or YouTube and you will be met with a deluge of content material from influencers, a few of whom have a whole lot of hundreds of thousands of followers. They dissect ingredient lists, movie unboxings and document "Get Prepared With Me" movies constructed round concepts akin to "glass pores and skin", sheet masks and, after all, snail mucin.

"There are such a lot of merchandise and types, and numerous occasions you are uncovered to hundreds of thousands of them as a shopper - it is extremely saturated and aggressive," stated Liah Yoo, a magnificence influencer and founding father of the US-based Okay-beauty model Krave Magnificence.

The method behind the rise

On the coronary heart of Okay-beauty's rise is a relentless tempo of innovation. New formulations seem each few months, usually designed to spark the subsequent on-line obsession.

Ten-step skincare routines, in a single day "water sleeping masks" and headline-grabbing components akin to salmon sperm had been as soon as considered as area of interest or unappealing. Immediately, many are staples in lavatory cupboards from London to Los Angeles.

Social media has been central to this shift. Merchandise launched in Seoul are on TikTok and Instagram feeds within the US, UK, India and Australia immediately.

There are nevertheless rising issues concerning the social impression of magnificence beliefs, significantly on younger folks. Specialists warn that fixed publicity to skincare content material on-line can gas anxiousness and extreme spending.

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/c253/live/b71fce30-e809-11f0-a8dc-93c15fe68710.jpg.webp" loading="eager" alt="Getty Images Sulwhasoo brand global ambassador, Yoona of girl group Girls' Generation poses for a photocall for the AMORE PACIFIC 'Sulwhasoo' holistic night party on April 14, 2025 in Seoul," class="sc-5340b511-0 hLdNfA"/> Getty Photographs Okay-pop star Yoona selling one in every of South Korea's best-known magnificence manufacturers

"We're totally conscious that extreme use or misuse of social media can result in backlash," stated Kim Seung-hwan, Amorepacific's chief government, including that manufacturers should strike a cautious steadiness in how they use on-line platforms.

The problem will solely develop because the trade expands to incorporate Western multinationals.

L'Oréal acquired a South Korean conglomerate which included the model Dr.G in late 2024, saying the deal would assist meet rising demand for efficient but reasonably priced Okay-beauty merchandise.

Different international companies are more and more incorporating widespread components related to Korean manufacturers akin to centella asiatica and rice water into their very own traces.

A lot of South Korea's giant magnificence manufacturers are a part of the nation's highly effective conglomerates, or chaebols.

Amorepacific accounts for roughly half of the home market. Its portfolio ranges from premium manufacturers akin to Sulwhasoo to international mass-market names like Laneige, environmentally targeted labels akin to Innisfree, and fast-growing unbiased manufacturers. However at the same time as a chaebol, Amorepacific says it seems to be to smaller unbiased manufacturers for contemporary concepts.

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/39cd/live/8f3702c0-e7fb-11f0-a8dc-93c15fe68710.jpg.webp" loading="lazy" alt="Getty Images Influencer Aylen Park and her mother attend Korean beauty event in New York, October 23, 2025." class="sc-5340b511-0 hLdNfA"/> Getty Photographs Influencer Aylen Park and her mom attend a Korean magnificence occasion organised by Amorepacific and Sephora in New York

"By means of the founder and the CosRX workforce, we had been capable of study their method to method innovation and the way to reply extra rapidly to shopper wants," Mr Kim from Amorepacific stated. "These classes have since been built-in into our wider organisation."

In 2024, Amorepacific bought about $6.2bn of merchandise. LG Family & Well being Care, one other main conglomerate, recorded gross sales of $4.1bn. The size of the trade continues to point out up in South Korea's export figures too.

Exports rose 15% within the first half of 2025 to a document $5.5bn, largely pushed by sturdy gross sales within the US and Europe, placing the nation on monitor to surpass $10bn in annual magnificence exports.

For Mr Kim, all clients usually are not the identical.

"In nations like Japan, Korea and China, there's extra curiosity in issues like flawless pores and skin. In Europe perfume is the principle class, and within the US make-up is extra widespread," he stated.

"Issues are altering although," he added, pointing to rising curiosity amongst Western shoppers in youthful-looking pores and skin and solar safety, significantly as consciousness of local weather change and UV publicity grows.

Maintaining with the competitors

To cater to the ever-growing demand, South Korea's 30,000 or so magnificence manufacturers depend on a extremely refined industrial ecosystem.

They're supported by unique improvement producers, or ODMs, which deal with analysis, formulation and manufacturing for 1000's of labels.

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/7ef9/live/9af7c760-e47d-11f0-9721-bbfac09df7bb.jpg.webp" loading="lazy" alt="Getty Images Customers browse Amorepacific Corp. cosmetics at the store in the company's headquarters in Seoul, South Korea, on Wednesday, Sept. 12, 2018." class="sc-5340b511-0 hLdNfA"/> Getty Photographs Amorepacific is South Korea's largest cosmetics firm

Even giant conglomerates outsource some product traces, whereas smaller names rely closely on ODMs to maneuver rapidly and hold prices down.

Cosmax, one of many largest producers, provides merchandise to about 4,500 manufacturers from factories throughout South Korea, China, the US and South East Asia.

In 2024, it accounted for simply over 1 / 4 of South Korea's $10bn value of cosmetics exports.

This permits merchandise to maneuver from being conceptualised to being bought in as little as six months - the method that may take one to a few years for a lot of Western manufacturers.

Automation helps hold prices down. The BBC visited a sprawling Amorepacific manufacturing unit outdoors South Korea's capital Seoul, the place a handful of employees oversaw totally automated manufacturing traces bottling Laneige's Water Sleeping Masks and CosRX's Vitamin C 23 Serum.

Pace, nevertheless, comes at a price. Intense competitors has contributed to skinny revenue margins and excessive charges of enterprise failures. In keeping with authorities information, greater than 8,800 cosmetics manufacturers have gone out of enterprise in recent times.

"South Korea has nice infrastructure that may allow you to create a model rapidly, however rising a profitable model is one other story," stated Ms Yoo. "It comes right down to your model ethos, your identification, and the way completely different your merchandise are from anything in the marketplace."

As competitors intensifies, manufacturers face rising stress to be extra clear, and to concentrate on components and the effectiveness of their merchandise slightly than celeb endorsements.

"We're not simply shopping for from the large manufacturers now. We're truly speaking about components, the place it is sourced, what it does," stated Mia Chen, a outstanding magnificence influencer. "Lots of Korean skincare derives from pure components, and all of us need that on our pores and skin with out unintended effects."

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/7cb8/live/e4a58830-dbc1-11f0-8c0a-bb33e8d9ed4b.jpg.webp" loading="lazy" alt="Getty Images Sydney Sweeney visits the LANEIGE Pop-Up at The Grove LA on March 25, 2024 in Los Angeles, California" class="sc-5340b511-0 hLdNfA"/> Getty Photographs Sydney Sweeney is the worldwide ambassador for Amorepacific's Laneige model

The trade can also be being formed by its altering market.

China is now not the largest abroad purchaser as its personal manufacturers erode the dominance as soon as loved by Japanese and Korean imports.

For the primary time in 80 years, Amorepacific's North America enterprise overtook the one in China final yr, Mr Kim stated, including that the agency additionally expects development in Japan, Europe, India and the Center East.

The US stays a key market, importing extra magnificence merchandise from South Korea than wherever else. However President Donald Trump's 15% tariffs on Korean imports have sparked some uncertainty.

Olive Younger, South Korea's largest cosmetics retailer which plans to open its first retailer within the US this yr, imposed a 15% customs obligation on American orders. Amorepacific stated it could contemplate worth will increase solely on a case-by-case foundation, based mostly on discussions with retail companions akin to Sephora and Walmart.

However the companies have the backing of the South Korean authorities, which designated Okay-beauty a strategic nationwide asset in December, promising to help manufacturing and exports.