According to market research firm Euromonitor International, ‘K-Beauty’ has become a key driver for the next phase of the global beauty market, as brands compete fiercely in terms of value, efficacy and a ‘digital-first’ approach. According to new data from Euromonitor’s Passport knowledge portal, beauty and personal care brands from South Korea achieved a global online market volume of US$15 billion last year, up from US$12.5 billion the previous year. This growth is primarily driven by digital-first strategies and strong demand in the US and Europe.

Germany: a growth market

“K-Beauty can no longer be confined to a single export market or region,” says Kayla Villena, a manager at Euromonitor International: “The brands are successful because they combine proven efficacy with faster innovation, clear added value and a digital approach that appeals to consumers across regions.” The market structure of K-Beauty has changed rapidly. By 2025, the US will already account for 54 per cent of online sales abroad. At the same time, Western Europe’s share has risen from three to ten per cent. Germany and the UK are the most important growth markets. Meanwhile, China’s share has fallen from 66 to 21 per cent of sales.

Digital brands are setting the pace

According to Euromonitor, digital channels are playing a key role in driving the rapid expansion of K-Beauty. TikTok, in particular, is emerging as a key growth driver, supported by a social commerce marketing strategy. In the US, TikTok Shop has risen to become the seventh-largest e-commerce retailer for beauty products – in 2023, the company was still in 27th place. The market value of TikTok Shop in the US reached more than US$900 million last year – in 2023, it was just US$100 million. Latin America is currently emerging as the next growth region, as the focus there is shifting from make-up to skincare. According to Euromonitor’s ‘Voice of the Consumer Beauty Survey’, Brazilian consumers now regard K-Beauty as more trustworthy when it comes to specific, exotic ingredients than they did two years ago. The availability of K-Beauty brands on the Brazilian e-commerce market rose by 159 per cent last year. Euromonitor International has teams in 16 offices worldwide and a network of analysts in more than 100 countries.

Source: Euromonitor