South Korean beauty startups, buoyed by robust online sales in the United States, are accelerating their physical retail expansion in the world’s largest consumer market, betting that strong brand appeal and quality will outweigh rising tariff concerns.
Emerging brands such as Tirtir, d’Alba, Torriden, and Beauty of Joseon are in discussions with major US retailers to stock their products in physical stores, according to company executives interviewed by Reuters. This strategic pivot underscores the confidence K-beauty players have in their ability to maintain momentum in a dynamic and highly competitive market.
Korean beauty products, widely recognised for their quality, affordability and savvy digital marketing, have risen on the back of South Korea’s wider cultural influence — often referred to as the ‘K-wave’. Music, film, and television successes like BTS and Parasite have paved the way for consumer interest in Korean lifestyle exports.
“In the US, interest in South Korea had already been growing. Korean cosmetics entered at the right moment. The quality is high, but prices remain competitive against legacy luxury brands like Estée Lauder and L’Oréal,” said An Byung-Jun, CEO of Tirtir.
Tirtir saw its US profile surge last year following the viral popularity of its cushion foundation tailored for darker skin tones. The product is slated to be available at select Ulta Beauty stores this summer. An added that the company is targeting a twofold increase in US sales this year.
Retailers including Sephora, Ulta Beauty, Costco, and Target are currently engaged in talks with Korean cosmetics firms to expand their offerings to physical store locations, according to more than a dozen industry sources including executives, CEOs, and market analysts.
Many Korean brands remain optimistic that they can weather tariff headwinds more effectively than global peers, due in part to their lean operational models. A significant number outsource manufacturing to firms like Cosmax and Kolmar—often referred to as the “Foxconns of fast beauty”—to minimise production costs.
In 2024, South Korea surpassed Germany to become the world’s third-largest exporter of beauty products, following only France and the United States. Export volume accounted for 80% of the nation’s $13 billion cosmetics output, largely propelled by e-commerce channels.
The growing interest is also visible at the consumer level. “They go straight to the point to fix what your skin needs,” said 25-year-old Yuliet Mendosa, a US tourist in Seoul and fan of K-pop group BTS, while browsing an Olive Young store.
Expanding Amid Global Trade Uncertainty
The US expansion effort comes amid ongoing global trade uncertainty triggered by the tariff regime introduced under former President Donald Trump. While this has raised concerns among exporters, Korean executives maintain that solid demand and brand equity will offset potential losses.
Olive Young, South Korea’s leading beauty retailer, is preparing to open its first US store in Los Angeles later this year, confirmed Jin Se-hoon, Executive Vice President of the company’s global platform business.
“California is currently the largest customer base for our global online platform,” Jin stated, acknowledging that tariffs are a concern but not a deal-breaker.
The US market push also reflects a strategic pivot following a downturn in exports to China, previously the largest overseas destination for Korean beauty products. This decline has been attributed to escalating geopolitical tensions and intensified market competition.
Skincare label d’Alba—owned by newly listed d’Alba Global—is currently negotiating with Costco, Ulta Beauty and Target to expand its physical presence. The brand is known for its vegan-certified mist serums and sunscreens.
Meanwhile, luxury retailer Sephora, part of LVMH, is preparing to introduce two Korean brands—Torriden and Beauty of Joseon—into its US stores this summer, according to a company spokesperson.
While the current 10% tariff is “endurable,” Tirtir’s CEO An noted that a proposed 25% levy expected in July may prompt slight price adjustments. The South Korean government is actively pursuing tariff exemptions in bilateral trade discussions with Washington.
Jung Jun-ho, strategy team leader at The Founders—maker of skincare line Anua—believes Korean brands retain an edge. “Our operating profit margin was over 30% last year, giving us flexibility to absorb cost increases,” he said. Anua products became available in Ulta Beauty stores this year.
Digital Success Sets the Stage for Physical Growth
In 2024, South Korea overtook France as the top exporter of cosmetics to the United States, according to official statistics. The shift was driven largely by surging e-commerce sales, especially through platforms such as Amazon.
Market data from Euromonitor reveals that the five top-performing Korean cosmetics brands in US e-commerce—including Beauty of Joseon, Medicube and Biodance—have collectively recorded an average online sales growth of 71% over the past two years. In comparison, the top five French brands posted only 15% growth, while the overall US market expanded by 21%.
Social media continues to be a powerful driver of this growth. “A single viral TikTok post or influencer endorsement can turn a product into an international bestseller before it’s even sold overseas,” said South Korea-based beauty marketer Odile Monod.
Nonetheless, experts warn that long-term success will hinge on building offline visibility and in-store availability. Jason Kim, CEO of cosmetics distributor Silicon2, said that physical retail presence is now crucial for brand sustainability.
Some early signs of market saturation are beginning to emerge. COSRX, a startup now under cosmetics giant AmorePacific, is reportedly seeing sales growth flatten amid intensifying competition and the rise of lower-cost alternatives.
Still, investor sentiment remains positive. Shares of d’Alba Global have more than doubled since their market debut last month.
“The K-beauty wave is powerful,” said Kim. “But indie brands must prepare for the challenges ahead.”
