SEOUL: The year 2025 brought about a significant success in the field of commerce for Korea as the country became the second-largest cosmetics exporter surpassing even the United States with its record-high $11.4 billion worth of cosmetics exported abroad. It was reported by the Food and Drug Administration Ministry that this year marked the first ever time Korea’s cosmetics trade balance surpassed $10 billion with $10.1 billion, which is an impressive 13.5% increase from last year’s results.
Despite retaining their position as the leading exporter of cosmetic products globally valued at $24.3 billion, the Korean nation is now exporting cosmetics worth $11.4 billion which easily outranks the USA with its exports standing at $10.8 billion.
Korea Cosmetics Export Success Story: How the Country Earned its $10.1 Billion Surplus
The $10.1 billion Korean cosmetics export trade surplus was formed on the basis of a simple, yet extremely efficient formula — exports grew at an all-time high level by 11.8%, whereas imports decreased by 2.3% up to $1.29 billion. This huge difference made up the biggest-ever gap between surpluses in Korean cosmetics.
The surplus is now accounting for 12.9% of Korea’s trade surplus total of $78 billion; thus, it ranks among the most significant factors that make up Korea’s balance of payment situation, second only to semiconductors and automobiles.
Korean Cosmetics Exports Primarily Consist of Skin Care
In 2025, skin care will dominate Korean cosmetics exports, representing $8.53 billion worth or 74.7% of the total export value. The second most exported type was colour cosmetics at $1.51 billion worth or 13.2% of the export value. The two types accounted for 87.9% of Korean cosmetics exported abroad, indicating how Korea’s reputation as an innovator in skincare is reflected in their export market dominance.
The last 12.1%, on the other hand, consists of fragrances, hair care, and personal care products which keep growing based on smaller volume sales due to the increasing presence of Korean beauty brand products worldwide.
US Becomes Top Export Market for Korea as China Fades
The US became the number one export market for Korean beauty products in 2025 by surpassing China, with a total value of exports to the US of $2.2 billion. China was a distant second, exporting only $2 billion worth of Korean cosmetics a marked reduction of 19% from the previous year.
Korean cosmetic exports now extend to as many as 202 countries around the world – an impressive leap from 172 in 2024. The Polish market experienced a stunning growth of 115%, propelling itself into the ninth place, whereas the UAE witnessed a growth of 70.6%, making it the eighth best export destination for Korean cosmetics.
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Record Production in Domestic Production
The Korea cosmetics exports explosion is also driven by the records of domestic production. Cosmetics companies in Korea achieved an estimated production value of 17.94 trillion won, marking a 2.3% increase compared to the previous year and the highest production in history. LG H&H was the biggest company among the sales companies with a production value of 3.92 trillion won, while Amorepacific came second with a production value of 3.03 trillion won. Cosmax achieved the highest production value of 1.61 trillion won among ODMs, just ahead of Kolmar Korea’s 1.3 trillion won.
Korea Looks at Muslim Markets and Global Regulation Role
Two new strategies have been launched by the Ministry of Food and Drug Safety, aimed at ensuring continued momentum in Korean cosmetics exports throughout the next years up until 2026 and even beyond. These include organizing an International Cosmetics Regulatory Authorities Summit in September, building on an already established Asian summit event and broadening its scope to cover the Middle East and South America.
At the same time, a specific halal cosmetic certification program is set up to support the penetration of Korean products in increasing Muslim consumer markets around the world – a new strategy that will focus on the 70.6% growth trend in the UAE and Korea’s geographical expansion in cosmetics exports.
