Recently, South Korea’s beauty industry is showing signs of recovery in China, with cosmetics exports posting positive growth in March for the first time in four months. The rebound follows a period of sharp decline and comes amid growing optimism surrounding China’s economic recovery and potential easing of restrictions on Korean cultural imports.
According to Korean alternative data platform KED Aicel, cosmetics exports to China rose 10.4% year-on-year in March to $197.5 million. This marks a significant turnaround after a prolonged slump that began in November 2024, when exports dropped 7.3%.
Skincare led the rebound, accounting for 54% of all Korean cosmetics exports to China. Shipments of skincare products jumped 25.4% to $107.7 million. Haircare and facial masks also contributed to the recovery, with increases of 14.9% and 6% respectively. However, not all categories shared in the upswing—exports of color cosmetics and perfumes continued to fall, declining by 32.6% and 21.4% respectively.
Analysts attribute the recovery to China’s recent economic stimulus efforts, including the Yi Gu Huan Xin policy, which promotes replacing old products with new ones. These measures have helped revive consumer sentiment and spending, as evidenced by a 4.4% rise in cosmetics consumption and 4% growth in overall retail sales in the first two months of 2025.
Further buoying expectations is speculation that Beijing may soon lift its unofficial ban on Korean cultural exports, imposed in 2017 in response to South Korea’s deployment of the U.S. THAAD missile defense system. Sources suggest the ban could be removed as early as May, as China seeks to bolster its soft power amid escalating trade tensions with the U.S.
If the ban is lifted, it could unlock significant opportunities for Korean beauty brands by easing restrictions on the distribution of Korean dramas, K-pop, games, and consumer goods like cosmetics. Major players such as LG H&H and Cosmax stand to gain the most. LG H&H, which derives 20% of its revenue from China, and Cosmax, which generates nearly 30% of its sales there, could both see accelerated growth. Cosmax’s Chinese unit is already targeting 10% growth in 2025, with analysts predicting it may exceed expectations if momentum continues.
