The K-beauty industry is accelerating its efforts to enter emerging markets such as India and the Middle East, moving away from export dependence primarily on North America and China. Until now, China, which has been a major pillar of Korean cosmetics exports, has faced a decline in demand due to economic slowdown, while the United States has seen tariff risks emerge. As a result, the domestic cosmetics industry is seeking new outlets by diversifying supply chains and distribution channels.
According to the industry on the 31st, the United States agreed to a reciprocal tariff rate of 15% in negotiations with Korea. The tariff will take effect from the 1st of next month. If price competitiveness is weakened due to tariff pressure, export impacts are inevitable. Accordingly, K-beauty corporations are strengthening efforts to proactively secure markets outside North America.
India is gaining attention as one of the key growth markets for K-beauty. The Indian beauty and personal care (BPC) market is expected to grow to $30 billion (approximately 40.5 trillion won) by 2027. According to a local research agency, the average annual growth rate of K-beauty in India is projected to exceed 9%. As of the first half of this year, Korea's exports of cosmetics to India reached $50 million (approximately 6.75 billion won), an increase of 44.7% compared to the same period last year.
Previously, Amorepacific Corporation was the first to establish major brands such as Innisfree, Laneige, and Sulwhasoo in the local market. In particular, Innisfree's Indian subsidiary recorded sales of 11.7 billion won, a 58% increase from the previous year, signifying strong growth. Indie brands such as Beauty of Joseon, SKIN1004, and Anua are also expanding their influence primarily through e-commerce platforms like Nykaa and Tira.
The Middle East has emerged as a new market for ODM (original design manufacturing) manufacturers, driven by the growing demand for customized color cosmetics, including halal products. CNC International saw its sales of liquid blush products optimized for local skin tones and religious characteristics surge by 575% year-on-year in the first quarter. By April 2025, Korea's exports of cosmetics to the Middle East reached $120 million, achieving over 40% of the annual export amount in the first half of the year.
The export share also expanded from 1% in 2021 to 4% in 2025, with K-beauty brands ranking among the top on major platforms like Amazon in the United Arab Emirates. COSMAX is reinforcing its product development tailored to emerging markets such as India, Latin America, and Africa through the 'LOCO project.' With an established logistics and distribution base, India serves as a production and export outpost for ventures into the Middle East and Africa.
Europe symbolically represents a region where the K-beauty export landscape is being reshaped. According to the Korea Customs Service's trade statistics, the share of cosmetic exports to Europe increased from 13.8% last year to 17.1% this year (January to May). By April, Europe even surpassed the United States (16.8%) with a share of 17.2%, indicating the possibility that the European market may surpass the U.S.
In the first quarter of this year, Europe's sales for SILICON2, the largest K-beauty distributor, amounted to 81.3 billion won, accounting for 33% of the total, which is over 80% more than the sales in North America (45.2 billion won). Analysts suggest that the expansion of European distribution networks such as Boots and Sephora, along with offline entry strategies, has proven effective.
From January to May this year, the share of the Middle East in cosmetics exports also increased from 3.3% to 4.1%. The United States fell from 18.1% to 17.5%, while exports to the Chinese region decreased from 31.1% to 27.1%. The export shares of Korean cosmetics for the period from January to May this year are as follows: Chinese region (27.1%), United States (17.5%), Europe (17.1%), ASEAN (13%), Japan (9.9%), and Middle East (4.1%).
Market dominance is shifting from large corporations to indie and small brands. According to the Ministry of SMEs and Startups, cosmetic exports from small and medium-sized enterprises reached $1.84 billion in the first quarter of 2025, a 19.6% increase compared to the previous year. Their share of total exports reached 71%, significantly outpacing the 3% growth rate of large corporations during the same period.
An industry insider noted, "In response to the tariff issue from the United States, we are diversifying our portfolio to minimize risk factors," adding that there is a caution not to repeat the past mistakes of large cosmetics corporations that relied heavily on China.
Kwon Woo-jung, a researcher at Kyobo Securities, said, "K-beauty is showing excess demand in Europe and the Middle East. Senior executives from global cosmetic distributors like Boots, Sephora, DM, and Rossmann are actively visiting Korea to bring in K-beauty."
Kwon added, "Currently, K-beauty accounts for 10% of the skincare sales at Boots, and Sephora in the United Kingdom classifies 'Korean skincare' as a separate category. Despite having no branches, K-beauty has captured a 13% share in the Middle East during the first quarter of this year, reflecting a strong response."