[E-Daily Reporter KIM JUNG YOU ] With domestic cosmetics (K-Beauty) exports hitting a record high in the first half of this year, the K-Beauty industry is expanding its market reach beyond skincare into the color cosmetics (makeup) sector. As demand for color cosmetics is rebounding in the global market and growth is limited by relying solely on skincare—which has been K-Beauty’s mainstay—the industry is launching an aggressive push in key markets such as Japan and the United States.

According to statistics from Japan’s Ministry of Finance released on the 7th, the value of lipstick imports into Japan last year reached $269.94 million (approximately 419.3 billion KRW), a 5.8% increase from the previous year. Of this total, imports of K-Beauty lipstick products amounted to $148.50 million (approximately 230.7 billion KRW), a significant 19.7% increase year-over-year. Their market share in Japan’s imported lipstick market reached a staggering 55.0%, solidifying South Korea’s position as the top supplier. The gap widened further with France, which ranked second, recording imports of $65.27 million (101.4 billion KRW, 24.9% market share).

Notable K-Beauty lipstick brands popular in Japan include “Laka” and “Pyu.” It is reported that products from these brands are prominently displayed in offline stores such as the Japanese lifestyle goods store “Loft” and the drugstore chain “Matsumoto Kiyoshi,” reflecting their high local popularity. A representative from the Japan sales team at K-Beauty Company A said, “Until a few years ago, K-Beauty sales on e-commerce platforms like ‘Qoo10 Japan’ were centered on skincare, but recently, demand for color cosmetics like lipstick has also been increasing,” adding, “Since color cosmetics require customers to see the actual shades in person, they are being rapidly stocked in brick-and-mortar stores as well.”

Japan has traditionally been a powerhouse in color cosmetics. However, analysts note that with the recent surge in popularity of K-content, demand within Japan for “Korean-style” gloss and colors is on the rise. On social media, content featuring K-pop idols’ makeup tutorials has gained traction, proving highly popular among Japanese MZ-generation consumers. Furthermore, the long-lasting wear of K-Beauty products is seen as a key strength, which is reportedly driving demand in Japan.

The same trend is evident in the United States, a major export market for K-Beauty. According to the Korea Customs Service, exports of color cosmetics to the U.S. market totaled $1.7488 billion (approximately 2.7192 trillion Hanwha) last year, a 13% increase from the previous year. Considering that exports in 2022 totaled $698.92 million (approximately 1 trillion won), this represents a 1.5-fold increase in just over three years.

In the North American market, “TirTir” is cited as a prime example of success. After U.S. influencer “Miss Darsi” posted a video trying out TirTir’s cushion and stating, “It doesn’t suit my skin,” TirTir expanded its color range from three to 40 shades. This move is widely regarded as the turning point for Korean color cosmetics in the local market. Since then, next-generation Korean color cosmetics brands such as Rom&nd, Pyu, and Kaza have also been expanding their influence by targeting the North American market.

K-Beauty has recently been playing a leading role in South Korea’s exports. According to the Ministry of Trade, Industry and Energy, K-Beauty exports in the first half of this year reached $7 billion (approximately 10.8787 trillion won), setting a record high. This represents a 27.3% increase compared to the same period last year. As of last month, exports also hit a monthly record of $1.34 billion (approximately 2 trillion won).

Currently, skincare is the core of K-Beauty exports. According to the Ministry of Food and Drug Safety, skincare accounted for 74.7% of total K-Beauty exports as of last year. In contrast, color cosmetics still account for only 13.2%—which, conversely, means they have greater growth potential. As a result, the industry views color cosmetics as the next-generation growth engine for K-Beauty exports and is actively entering this market.

Domestic Original Design Manufacturer (ODM) companies—such as KOLMAR KOREA(161890)and COSMAX, INC.(192820), which handle manufacturing for K-Beauty brands—have also recently been strengthening their color cosmetics lineups. Starting last year, ODM companies have begun expanding their color cosmetics production lines to prepare for increased demand.

A beauty industry insider stated, “Amid a resurgence in demand for color cosmetics in the global market following the COVID-19 pandemic, the growing trust in K-Beauty skincare is now extending to color cosmetics as well.” They added, “From the perspective of K-Beauty companies, it has become difficult to grow solely through skincare in this increasingly competitive environment, so they are actively pushing into color cosmetics to strengthen their portfolios.”