Korea's cosmetics exports reach record $2.6 bil. in first quarter

Korea’s cosmetics exports surged to a record high of $2.6 billion in the first quarter of 2025. However, U.S. President Donald Trump's new tariff plan is expected to complicate the industry’s prospects.

The Ministry of Food and Drug Safety said Wednesday that the figure marks a 13 percent increase from the previous record set in the first quarter of 2024.

China was the largest importer, purchasing $520 million worth of cosmetics, followed by the United States at $440 million. The U.S. accounted for 16.9 percent of Korea’s total cosmetics exports, with first-quarter exports to the country increasing by $60 million compared to the same period last year.

Many Korean cosmetics companies have entered the U.S. market in recent years. This year, beauty retail giant CJ Olive Young launched a U.S. subsidiary in Los Angeles to enhance its presence in one of the world’s largest beauty product markets.

Meanwhile, cosmetics contract manufacturer Kolmar Korea plans to expand its Pennsylvania factory by adding a new facility to increase the production of popular sunblock and skincare products.

According to market tracker Grand View Research, the U.S. cosmetics market was valued at approximately $66.47 billion last year.

The ministry highlighted that Korea surpassed France last year to become the top cosmetics exporter to the U.S. However, the industry’s outlook has become uncertain following Trump’s announcement of a 25 percent tariff on Korean products.

Trump said Wednesday that, in addition to base tariffs, reciprocal tariffs would be imposed on major U.S. trading partners, including Korea, China, Japan, the European Union and Taiwan.

Experts say that the tariffs could significantly harm Korea’s cosmetics industry unless the country swiftly negotiates with the Trump administration to have them reduced.

“With Trump’s proposed tariff plan, Korean products face a 25 percent tariff, while the EU is subject to a 20 percent tariff. This means Korean goods will be 5 percent more expensive than their French counterparts, the biggest competitor in the U.S. cosmetics market,” Choo Moon-gab, a director at the Korea Federation of Small and Medium Business, told The Korea Times.

However, one industry source expressed confidence that the U.S. tariff hike will not severely affect Korean beauty products.

"Unlike the auto industry, where a single purchase involves a hefty sum of money, cosmetics typically see price differences of just a few dollars. Given the strong consumer loyalty to Korean products, the overall impact may be limited,” a manager at beauty product company APR told The Korea Times.

She added, "We’re not too concerned about competition with French products either, because they are positioned as high-end premium products, whereas Korean cosmetics are priced much lower."