K-Beauty Continues U.S. Growth

ON FRIDAY, South Korean beauty (K-beauty) and cosmetics retailer Olive Young (Los Angeles) opened its first U.S. store in Pasadena, Calif. With the opening comes the American consumer’s continued appetite for K-beauty brands during the last few years.

Last year, South Korea’s cosmetics exports totaled $11.4 billion, according to South Korea’s Ministry of Food and Drug Safety, making the country the world’s second-largest cosmetics exporter behind France. With $2.2 billion worth of shipments, the U.S. was the largest market for South Korea’s cosmetics. Between 2020 and 2024, Korea’s total cosmetics exports expanded from $7.57 billion to $10.23 billion, representing a cumulative increase of 35 percent, according to the Korea Economic Institute of America. 

K-beauty brands “have broadened their reach among North American consumers, particularly millennials and Generation Z, who increasingly seek dermatologically advanced, cruelty-free, and culturally distinctive skincare brands,” the Korea Economic Institute of America said in a report. “Industry analysts and market observers frequently describe Korean beauty products as emphasizing innovation, novel formulations, and science-oriented skincare development, contributing to a global reputation for technologically sophisticated beauty products.”

Many K-beauty brands are partnering with big-box retailers to sell their products in the U.S. One of these brands, Medicube, announced last month that its products will launch at Target and Walmart stores across the U.S., while two other brands, IOPE and Lala, made their U.S. debuts at Sephora. KSECRET SEOUL 1988 also announced last month that it will sell its products at Costco.  

In Pasadena, Olive Young’s store may be indicative of the growing popularity of K-beauty brands amongst Americans, but it is not catering to the traditional sensibilities of U.S. retail. The store’s layout is based on a “skincare-first curation” model with products grouped together based on skin concern – an approach that was developed and used in South Korea. 

“We see Olive Young not only as a destination for K-beauty, but as a discovery platform that brings together diverse beauty, wellness and lifestyle brands from Korea and beyond,” said Olive Young U.S. CEO Gaeun Kwon in the brand’s press release on the store’s opening. “Our goal is to help customers continuously discover something new — from emerging trends and innovative products to routines and brands that fit their individual lifestyles. By connecting our physical store and digital platform, we hope to make beauty discovery more accessible, relevant and inspiring for American consumers.”

Beyond skincare and cosmetics, other Korean brands are seeing potential growth in the U.S. Olive Young’s parent company, CJ Group, says it’s seeking more U.S. locations for its other brands such as food brand Bibigo, event brand KCON and ScreenX theater technology.