Since the start of this year, news of “sales” in the Korean beauty market has surfaced frequently, with transaction amounts often exceeding the billion-yuan mark. From local Korean startups to global private equity giants, it seems the capital market has unanimously set its sights on Korean cosmetics.
So, why are K-beauty brands becoming increasingly “valuable”? And how long can this wave of enthusiasm last?
L’Oréal and Private Equity Giants Set Their Sights on K-Beauty
The U.S. private equity firm Blackstone Group is reportedly in talks to acquire Korean premium hair salon chain Juno Hair in a deal valued at around KRW 800 billion ($575.8 million). In fact, over the past year, reports of sales in the Korean beauty market have surfaced frequently. According to an incomplete tally by CHAILEEDO, at least seven Korean beauty brands or companies have been sold or are seeking a sale so far this year.
In terms of sale valuations or deal amounts, almost all transactions have reached the billion-yuan scale, with three deals exceeding the 10-billion-yuan mark. Overall, the total sale amount is estimated at no less than RMB 14.2 billion.
The largest transaction came from Korean cosmetic packaging supplier Samhwa. Notably, in July 2023, global private equity firm TPG acquired 100% of Samhwa and its four subsidiaries for KRW 300 billion ($215.9 million). Two years later, in 2025, Samhwa is being sold again — this time to another PE giant, KKR — for around KRW 900 billion ($647.7 million), including dividends, more than doubling the purchase price in just two years.
Another case of a secondary sale involves Korean affordable makeup brand Apieu. In 2017, Korean PE firm IMM acquired shares worth KRW 40 billion ($28.8 million) to become the largest shareholder of Able C&C, the parent company of Apieu and Missha. In recent years, IMM has sought to sell Able C&C but ultimately decided to sell Apieu separately, citing brand value and other factors. These deals underscore the rising value of the Korean beauty market, with brands and companies commanding increasingly higher price tags.
In terms of buyers, Korean companies remain the main force in acquiring K-beauty brands. For example, Korean beauty startup Goodai Global announced it would acquire skincare brand Skinfood for about KRW 150 billion ($108 million). However, beauty giant L’Oréal and global private equity heavyweight KKR have also turned their attention to the Korean beauty market. Over the past year, they acquired packaging supplier Samhwa and the parent company of skincare brand Dr.G, Gowoonsesang Cosmetic, respectively.
One key reason for this surge in interest is the rapid growth of the Korean beauty market. According to the latest data from South Korea’s Ministry of Food and Drug Safety, in the first half of 2025, Korea surpassed the U.S. for the first time to become the world’s second-largest cosmetics exporter after France. During the period, Korean beauty exports rose 14.8% year-on-year to $5.5 billion, marking the third consecutive year of growth since the first half of 2021 and setting the highest first-half export record in nearly five years.
In addition, public data shows that the proportion of Korean beauty-related startups jumped from 5.4% in 2023 and 5.8% in 2024 to 18.4% in 2025. Among all invested startups, the share of beauty startups rose nearly eightfold from the previous year to 28.6% of the total. This clearly indicates that the Korean beauty industry is entering a new wave of growth opportunities.
Replicating the Path to Success: K-Beauty Ushers in a “Second Spring”
So, why has K-beauty — once in decline — become popular again?
In the Asian market, K-beauty’s former glory needs little introduction. With the rise of K-POP and the Korean Wave, Korean cosmetics enjoyed years of immense popularity across Asia, particularly in China and Japan, winning the favor of countless consumers. According to China Customs data, in 2015, cosmetics imports from Korea reached RMB 4.989 billion, a year-on-year surge of 1,623.88%. That same year, Korea overtook the U.S. and Japan to become China’s second-largest source of cosmetic imports.
Notably, the path that led to K-beauty’s explosive success in Asia now seems to be replicating itself in North America, Europe, and other markets.
In recent years, Korean films such as Squid Game and Parasite have reached mainstream Western audiences through platforms like Netflix, winning loyal fans and successfully breaking into the European and American markets. Likewise, the global success of K-pop groups such as Blackpink and BTS has further boosted K-beauty’s brand awareness and acceptance in these regions.
As more consumers become interested in Korean entertainment, Korean cuisine, cosmetics, and other cultural exports have also entered their radar. Meanwhile, the widespread sharing of K-beauty–related marketing — from Korean-style filters to multi-step skincare routines and sheet masks — on platforms like Instagram and TikTok has fueled its overseas popularity.
“Social media and TikTok have helped bring K-beauty into consumers’ daily lives,” said Kaitlin Rinehart, Vice President of Merchandising at Ulta Beauty, the largest beauty retailer in the U.S., in a public statement earlier this year. This has undeniably boosted K-beauty’s popularity in markets such as the U.S., where, according to foreign media, consumers spent $1.7 billion on K-beauty products in 2024 — more than 50% higher than the previous year.
When news broke of Apieu’s potential sale, some foreign media analysts argued that IMM’s decision to sell Apieu separately rather than the entire Able C&C company could be more appealing, noting that “Korea’s export of affordable color cosmetics to the U.S. has fueled a new wave of the global K-beauty boom.” This reflects just how strong U.S. consumer enthusiasm for K-beauty is.
CHAILEEDO notes that major K-beauty players like LG Household & Health Care and Amorepacific have already been actively expanding into Europe and North America. As early as the beginning of 2023, LG H&H President and CEO Lee Jung-ae publicly stated: “To avoid overreliance on the Chinese market, the group’s next growth market will be North America, and marketing focus will shift there.”
Similarly, in its 2024 Corporate Value Enhancement Plan, Amorepacific clearly stated it would “shift focus from China to the U.S., Europe, and other markets.” This strategic pivot has helped the group further expand overseas and enhance K-beauty’s global influence.
For example, Amorepacific’s 2024 sales in the Americas surged 83% to KRW 524.6 billion ($377.5 million), surpassing Greater China for the first time and becoming the group’s largest overseas market. Performance in the EMEA region (Europe, Middle East, and Africa) was even more remarkable, with sales soaring 229% year-on-year.
In its recently released Q2 2025 (April–June) earnings report, Amorepacific posted KRW 1.015 trillion ($730.4 billion) in sales, up 1.1% year-on-year, and operating profit of KRW 73.6 billion ($53 million) — a staggering 1,673.4% increase from the same period last year. The company again attributed the growth to “sustained high growth in European and American markets.”
Although LG H&H’s Q2 performance this year was less than stellar, its premium personal care brand Dr.Groot maintained solid momentum in North America, with sales up 6.4%. It’s fair to say that K-beauty companies, drawing on their success in Asia, now see clear potential in global expansion — and the continuing spread of the Korean Wave has created favorable conditions for K-beauty’s rise in Europe and the U.S.
From “Selling Products” to “Selling Uniqueness”: New Players Overtake Industry Giants
Analysts believe that K-beauty’s rise in markets such as Europe and the U.S. is not only driven by the Korean Wave but also by the industry’s ongoing evolution.
One of the main reasons K-beauty products quickly gained traction in Asia and Western markets was their strong value-for-money proposition — affordable pricing paired with quality that meets most consumers’ needs. However, as market competition has intensified, value alone is no longer enough to sustain K-beauty’s popularity. The industry has shifted from simply “selling products” to “selling uniqueness.”
This transformation can be seen in several areas. First, K-beauty brands are doubling down on product innovation, launching items with distinctive selling points. Recently, ingredients such as PDRN and exosomes — widely used and recommended by Korean dermatology clinics — have drawn significant attention in China and abroad.
PDRN’s application in tissue repair was approved as early as 2008, and it quickly became a sought-after ingredient in Korean skin clinics. Brands such as Deshure and Rejuran, which feature PDRN, have become favorites among Chinese and international aesthetic consumers. Korean skincare brand CNP has also incorporated the ingredient into its products. As one U.S. physician told foreign media, “PDRN is still relatively new in the U.S., but more and more consumers are starting to ask about it.”
In addition, K-beauty products often emphasize natural concepts, featuring ingredients such as rice extract, ginseng essence, and snail mucin — aligning with the Western preference for natural, organic, and clean beauty.
Another noteworthy development is the meteoric rise of APR Corp, a Korean home beauty device company whose market capitalization has approached KRW 8 trillion ($5.8 billion), surpassing Korea’s largest cosmetics brand Amorepacific and closing in on Japan’s Shiseido. This success is closely tied to “K-style beauty.”
Compared to other beauty device brands, APR’s products reflect the minimalist elegance of Korean design, with compact, portable formats. Unlike traditional brands that rely heavily on duty-free channels, APR has forged its own path by launching large-scale marketing campaigns on TikTok. Its brands have collaborated with international celebrities such as Hailey Bieber, the Kardashians, and Kylie Jenner, using appearances in their daily videos to convey the idea that consumers can enjoy spa-like treatments at home.
Public data shows that with influencer endorsements and multi-channel marketing, APR’s flagship brand Medicube has racked up over 2.6 billion TikTok video views, while traffic to its independent website surged from 176,000 visits in July 2023 to 581,000 in July 2025. In the first half of this year alone, revenue from Amazon, TikTok, and its official website exceeded $210 million.
By retaining its unique identity while investing heavily in R&D and innovation, continuously launching competitive new products, and tailoring precise marketing strategies to overseas markets, K-beauty has met both the practical and emotional needs of Western consumers. This kind of innovation-driven transformation — rather than chasing short-lived trends — has allowed the industry to regain momentum.
Overall, many K-beauty brands have successfully upgraded from “selling products” to “selling uniqueness,” earning growing market favor. As global recognition and affection for K-beauty deepen, the industry’s “second spring” looks set to keep flourishing.
