Glowing Global: A Closeup on the Korean Skincare Market and its Expansion Opportunities

By Madeline Chai, Northwestern University

In the past decade, there has been a cultural shift where young American teens have started to prioritize self-care more and more. Trends like “get ready with me” style videos, where influencers showcase their beauty routines while also promoting specific products, have played a significant role in popularizing these habits among younger generations. The growing audience of skincare users has created opportunities for the beauty industry to grow and innovate within this sub-sector.

Consumers are especially captivated by the step-basis routine, requiring careful methodology and subsequent knowledge about different products and their remedies. As skincare continues to become more mainstream, research has revealed what specific ingredients are truly beneficial in preventing aging, acne, dryness and other skincare concerns. The United States may be just catching onto this trend now, but South Korea has had the secret to perfect skin unlocked for many years.

So what exactly distinguishes the Korean Skincare industry? What is it about the Korean economy that allows this industry to achieve such success?

What Differentiates Korean Skincare from Western Approaches?

The Korean Skincare industry has thrived in its differentiation from Western skincare approaches through their utilization of natural products and mild formulas that focus on promoting ultra-hydrated skin to achieve the classic Korean “glowy skin” look. Korean products are unique in that they use all-natural ingredients, allowing users to genuinely understand what they are putting onto their skin, rather than trying to comprehend the exhaustive drugstore labels that are composed of unpronounceable chemicals. When asked about why she chooses to use Korean Skincare products, Northwestern sophomore, Sydney Chean, remarks, “I enjoy how the formulas are gentle and tailored to all skin types, and how the ingredients are better for you.” A main distinction is that American products often have intense formulas that are harmful to the skin, as they contain harsh chemicals that are unfriendly to sensitive skin types. Devika Dwivedi, another sophomore at Northwestern University adds, “Because I have sensitive skin, I prioritize the ingredients in my skincare products, as well as how they physically make me feel.” Beyond branding and popularity, buyers seem to value the actual content of their products, which ultimately influences how they make users feel. As a result, Korea’s approach to using clean, pure products in their milder formulas is one factor that successfully captivates the interest of buyers.

Additionally, Korean products contain unconventional animal ingredients like snail slime, pig collagen, and starfish extract, which have proven to show customer-satisfying results. When commenting about her favorite Korean skincare product, Chean adds, “I have one product where the serum contains microneedles, which helps rebuild your skin and improve skin elasticity.” Ingredients like microneedles or exotic animal products can attract buyers who may be curious to explore new products. Dwivedi says “Korean products use ingredients that are uncommon in American brands, like snail mucin, or centella. I think other cultures are better educated on holistic health and natural ingredients than American brands are because it’s part of their culture or history.” As commercialized as this industry has become, it all roots back to ancient medicine and the use of natural resources. This not only highlights the cultural depth of these products but upholds the Korean tradition of blending cultural heritage with modern innovation.

A Closeup of the Market: What Makes it Particularly Successful?

As many of these products are mainly manufactured, distributed, and used in South Korea or in Asia, it may seem that the industry has trouble reaching a more global audience. However, due to its rise in popularity and booming demand, skincare brands rely heavily on E-Commerce to bring in sales.

The South Korean economy has extremely benefitted by the industry’s success, fueling the creation of more brands, and activation of more distribution channels. Over 50% of Korea’s total beauty revenue is attributed to sales of skincare products, with approximately 40% of that revenue derived from online sales. The E-commerce industry has allowed for these products to be distributed globally, while also minimizing the operating costs and allowing the brands to scale appropriately to meet demand. Many Korean Skincare brands are sold on Amazon or TikTok Shop—two very convenient and popular E-commerce platforms. When asked about the economic success of Korean Skincare products, Sora Lee, Global Head of Product Marketing at TikTok and Korean Beauty expert says, “When price points are lower, it's easier for people to do impulse purchases. Korean products are hyper-focused on specific skincare concerns, well-priced, and don’t look cheap, making it mentally easier for buyers to check out.” Lee compared Korean Skincare to fast fashion, as consumers are more likely to buy on the spot when products are more simple and cheap. “Korean production is more agile and low-effort, they are able to manufacture and distribute products very fast”, Lee remarks. Korea’s fast-paced culture allows them to produce more and sell more for a lower price, ultimately creating high profit margins across the industry. Additionally, Korean convenience stores often sell skincare brands on their shelves, ultimately creating a casual branding to these products, making it more accessible for buyers.

A large portion of Korean skincare products’ marketing is attributed to global interest in K-dramas, K-pop and other aspects of Korean culture. The Korean pop-star “look,” which consists of glass-like, glowy, fair skin, has become popular across the globe. As fans follow their favorite K-stars on social media, they are exposed to the products they use to achieve their look, ultimately expanding their influence to those who may not be particularly interested in skincare. Sydney Chean states that she believes that Korean skincare popularity is due to how Korean trends have “blown up.” She says, “Whether it’s convenience stores, k-pop stars and music, there has been a lot of talk.” The entire K-beauty phenomenon has become widely known due to these K-pop stars and influencers, so much that foreigners will travel to Korea to get specific treatments done.

Future Growth Opportunities

According to the Straits Research market report, the Korean Beauty market in South Korea is currently $12.54B, and is expected to reach $25.9B by 2032 at a 8.43% growth rate. In addition, a 2024 Forbes article expects the K-Beauty Market to hit $18.3B in revenue by 2030. These statistics reflect great economic success and show high growth potential in this rapidly evolving industry, marking South Korea as a global leader in this market. The Straits Research report explains that this immense expected growth is partly due to an increase female participation in economic activities, which can be attributed to an overall rise in income levels.

As Korean culture continues to gain global popularity, there are many outlets for the Korean Skincare industry to expand globally. The next step in Korea’s expansion plan would be breaking into the U.S. beauty market. Partnerships with American beauty companies could work to familiarize American buyers with Korean brands, and increase their general prevalence in stores. Physically bringing Korean products into American stores would increase buyer awareness, ultimately helping make Korean Skincare more mainstream in the U.S.

The approach that Korean products embrace is a contributing factor to the industry’s success, but it is still important for these brands to be wary of global skincare trends and to try to implement them into innovative, new products. For example, we have seen veganism rise in the U.S. as personal and environmental preference, so to make their products more widely accepted, Korean skincare brands may have to experiment releasing vegan products to appeal to this demographic. The initial interest amongst US consumers is already there, which creates many opportunities for the Korean Market to expand into the U.S.

On the topic of industry expansion, Sora Lee suggests that it revolve around multicultural marketing and partnerships. “Instead of doing what others are doing, they (brands) need to try out different things. Reach out to different types of creators and experiment with different marketing tactics.” Lee explains how the Korean Beauty industry is “homogenous,” and follows an “idol system” where brands produce similar products, hoping that at least one will become successful. However, the American consumer system emphasizes tailoring products to the exact needs of the consumer. When attempting to expand westward, it may be important for Korean brands to experiment tailoring their products to the needs of their target consumers. This can allow them to be more intentional with their production, reducing waste and ultimately becoming more sustainable.

Additionally, when looking into the greater westward expansion of K-beauty, Lee explains that it is important to “work closely with local people who understand both cultures,” rather than continuing to let Korean executives control the marketing operations. When looking to expand into the American market, it is important for Korean brands to partner with industry professionals in the United States in order to better understand the American market and consumers. Especially in the age of digital media, it may be helpful to rely on American social media influencers to achieve this success. Influencers hold immense power in promoting products through participating in trends and brand endorsements, which could be impactful in creating popularity around Korean skincare in the U.S.

Conclusion

In conclusion, the potential expansion of the Korean Beauty market has an upward trajectory, both economically and socially. The Korean industry has nailed down its economic tactics, through E-commerce sales and pop-culture natural marketing. Although the Korean Market has its clear leaders, there is plenty of room for new companies, as the market attraction creates substantial demand for new products. Korean skincare’s distinction from American products gives them an advantage in the market, where they are able to price low, while also achieving high profit margins.

As of now, it seems that Korean Beauty stands superior to American Beauty products, as consumers increasingly prioritize quality, affordability, and cultural connection in their beauty routines. Korean skincare exemplifies how a blend of tradition and modernity can create a compelling, world-renowned market, and their products provide opportunities for beauty education, health awareness, and of course, perfect skin.

Cover photo taken from Flickr.