A TikTok influencer from the U.S., boasting 910,000 followers, shares reviews of lesser-known Korean cosmetics, prompting followers to eagerly purchase the highlighted products. Through word of mouth, the product achieves the top sales rank on the largest U.S. e-commerce platform, Amazon. The company’s revenue, which was a mere 100 million won in 2020, is estimated to have surpassed 200 billion won last year. This narrative portrays the phenomenon of ‘Beauty of Joseon,’ recognized as a legendary story in the realm of small cosmetic brands in Korea.
Lesser-known Korean beauty brands are becoming increasingly popular in the U.S. market. Their substantial growth in exports can be attributed to positive word-of-mouth on social media platforms such as TikTok, where they are praised for offering high-quality products at affordable prices. Some of the brands even dominate the top sales rank on Amazon.
According to the Ministry of SMEs and Startups, export revenue for cosmetics ranked first among the top 10 export items for small and medium-sized enterprises (SMEs) last year, reaching $5.4 billion (7.2 trillion won), signifying a significant 20.2% increase compared to the previous year.
The notable growth in cosmetics exports was primarily driven by the U.S. In the third quarter of last year, SMEs saw a substantial 79.1% increase in the export value of cosmetics to the U.S., reaching 354.3 billion won. This surpassed China’s previous position (327 billion won) as the leading country for cosmetics exports, establishing the U.S. as the primary export destination for domestic SME cosmetics.
The popularity of Korean cosmetics in the local market is confirmed by U.S. government statistics. According to data from the U.S. International Trade Commission (ITC) and U.S. trade statistics, Korea claimed the top position among the importing countries for cosmetics in the U.S. as of July last year, with a dominant market share of 20.1%. This demonstrates a consistent upward trajectory, engaging in market share competition with countries such as France and Canada.
The surge in popularity during the COVID-19 pandemic, driven by increased demand for skincare solutions due to the rise in skin issues following widespread mask-wearing, contributed to the upward trend in export revenue, starting in 2020 when mask-wearing became prevalent.
The U.S. cosmetics market’s emphasis on color products provided an easy entry for domestic companies specializing in skincare. The heightened appeal of Korean culture, fueled by the widespread popularity of K-pop, contributed to this trend. Additionally, the recognition of K-beauty products increased as U.S. Millennials and Gen Z shared reviews of these products on platforms such as TikTok.
The appeal of Beauty of Joseon’s flagship product, the ‘Relief Sun,’ lies not only in affordability compared to luxury cosmetics but also in excellent ingredients and performance. This product, which secured the top spot in last year’s Amazon Black Friday sales, incorporates rice extract—a traditional Korean skincare ingredient—reinterpreted for the modern consumer, making it a successful contender in the North American market.
SKIN1004 and Mixsoon, which showcased their presence on Amazon last year, are also known for their emphasis on high-quality ingredients.
SKIN1004 clinched the top spot in sunscreen sales during Amazon’s major discount event, ‘Prime Day,’ in July last year with its vegan offering, the ‘Hyalu-Cica Water-Fit Sun Serum.’ Consequently, the company’s U.S. sales almost doubled, reaching 11.3 billion won by October, compared to the previous year.
Mixsoon’s standout product, the ‘Bean Essence,’ made its mark by reaching the 2nd position in Amazon’s serum rankings. The brand’s global popularity has also translated into domestic success, prompting Mixsoon to open a pop-up store in Seongsu-dong last year.
Kim Myung-joo, a researcher at Korea Investment & Securities, noted, “Considering the cost-effectiveness competitiveness of Korean indie cosmetics, there is a high possibility that a ‘hero’ brand, following in the footsteps of Beauty of Joseon, will emerge among Korean indie cosmetics again this year.”
