[Edaily Han Jeon-jin Reporter Kim Ji-woo] “This is what surprises foreign buyers the most. The water turns into cream, becoming warm and increasing its absorbency. Our competitors’ products don’t do this.”

On the 29th of last month, at the LG H&H Formulation Research Lab in LG Science Park, Magok-dong, Gangseo-gu, Seoul. As Park Su-jin, head of the Hair Beauty Research Team, wearing a white lab coat, poured “Dr. Groot Miracle In-Shower Treatment” into a beaker containing wet hair, the clear liquid instantly solidified into a cloudy cream. The screen of the thermal imaging camera placed nearby turned from blue to yellow. This marked the “phase transition”—the moment the liquid transformed into a cream—and the rise in temperature. The viscosity increased 800-fold, and the cream adhered tightly to the hair without running off. Under the same conditions, products from global competitors ran right off.

The Body Research Lab is a space that offers a glimpse into the next frontier for K-Beauty. It serves as a venue to showcase the company’s technological capabilities to external parties, such as overseas buyers, and has recently hosted a series of hair care product demonstrations. Last year, visits by buyers from Costco in the U.S. and Sam’s Club in China led to actual contracts for product placement. This facility also served as the starting point for the hair loss care brand “Dr. Groot” to expand its shelf presence from the U.S. to Canada and Mexico. In essence, this is where K-Beauty—which opened up the global market with skincare—is now proving its technological competitiveness in hair care as well.

◇K-Wave Opens the Door, Technology Seals the Deal… The “Hair Export War” Among Three Companies

According to industry sources on the 4th, South Korea’s three major beauty companies (AMOREPACIFIC CORPORATION(090430), LG H&H, andAEKYUNG INDUSTRIAL(018250)) are stepping up their competition to position hair care products, such as shampoos, as their next-generation export drivers. LG H&H launched Dr. Groot on Sephora’s online store last March, and its sales during Amazon Prime Day in June surged by more than 50% year-over-year. Starting this month, the products will be sold at approximately 400 Sephora stores across the United States. AMOREPACIFIC CORPORATION has launched its hair care brand in all 45 Sephora stores in Brazil, and AEKYUNG INDUSTRIAL has expanded its hair care exports to 32 countries. The “K-Beauty formula”—proving success online before expanding to global brick-and-mortar markets—is already being replicated in the hair care sector.

If the Korean Wave opened the door to the K-haircare market, the industry is now entering a phase where technological prowess determines competitiveness. In the past, the lustrous hair of Korean idols and actors, popularized through K-pop and K-dramas, established itself as a “beauty standard” and drove product demand. However, rather than relying on that halo effect, competition is now intensifying as companies focus on expanding the market through proven performance, emphasizing functionality such as hair loss prevention, scalp care, and treatment for damaged hair.

The key to this competition lies in “visible efficacy.” LG H&H is leading the way with phase-change and heat-generating formulation technologies. These products transform into a cream the moment they are applied, allowing them to adhere closely to the hair. AMOREPACIFIC CORPORATION analyzed over 8,000 ingredients using artificial intelligence (AI) and molecular modeling to develop “Tripeptide-132,” a peptide that strengthens hair keratin. The company explained that its in-house tests showed hair tensile strength increased by up to 44%. AEKYUNG INDUSTRIAL secured a patent for “L-THP,” an ingredient that alleviates hair loss, and registered it with the International Cosmetic Ingredient Dictionary (ICID). As domestic companies move to secure differentiating technologies in this way, competition in the hair care market has now shifted to a stage where ingredients and clinical results are the deciding factors.

Competition is particularly fierce when it comes to targeting “hair types different from those of Koreans.” Companies are conducting intensive research into the distinct hair textures and scalp conditions specific to each ethnic group. LG H&H is validating its products based on a classification system that divides hair texture into 12 types, utilizing a local U.S. research institute and a panel of foreign visitors to Korea. AEKYUNG INDUSTRIAL is targeting the U.S. market—which has a large Hispanic and Black consumer base—with a product strategy that combines “extreme damage care,” designed to intensively treat hair damaged by heat styling, with fragrance. Observers note that companies are no longer simply selling Korean products as-is but are now developing products tailored to the hair textures and living environments of local consumers.

There is ample room for growth. This is due to the recent spotlight on “skinification”—treating the scalp like skin—and “bond repair” technology, which restores the structure of damaged hair. Skincare ingredients such as ceramides are being incorporated into hair products, and the range of functional products—including scalp ampoules, tonics, and hair serums—is rapidly expanding. Another strength is the ability to directly apply the research and development (R&D) capabilities accumulated in the skincare sector. According to Euromonitor, the U.S. hair care market—the fiercest battleground—is projected to grow from approximately $19.3 billion in 2025 to about $22.0 billion by 2030.

Experts are also taking note of the potential of K-haircare. Kim Ju-deok, Distinguished Professor in the Department of Beauty Industry at Seoul Cyber University, predicted, “As the status of K-Beauty has recently risen, its quality and functionality are beginning to be recognized,” adding, “Given that domestic companies have devoted significant effort to research on functional products—such as those for hair loss—growth is expected to accelerate, particularly in Europe and North America.”

◇The Challenge Begins Now… Global Giants and Export Barriers Are Wildcards

However, competition in the global market is just beginning. In the U.S. alone, global giants like P&G and L’Oréal dominate major retail chains such as Walmart and Target. Additionally, U.S. premium brands like K18 and OUAI, which focus on damaged hair repair, are growing rapidly by leveraging clinical trials and proven efficacy. K-Hair faces the challenge of proving both its differentiated technological capabilities and brand competitiveness amidst global conglomerates and premium functional brands.

Non-tariff barriers are also significant. A prime example is the varying regulations across countries regarding the claims made for hair loss and scalp care products. In South Korea, “alleviating hair loss symptoms” is recognized as a functional cosmetic, but in the U.S., it is classified as an over-the-counter (OTC) drug; in Japan, as a quasi-drug; and in China, as a special-use cosmetic. In the U.S., even products marketed for dandruff relief may be subject to OTC regulations, while China requires efficacy evaluations for each individual product (SKU). Furthermore, the U.S. Modernization of Cosmetics Regulation Act (MoCRA), which took effect in 2024, has added obligations regarding the registration of manufacturing facilities and the management of safety data. This places an even greater burden on small and medium-sized enterprises (SMEs) that lack sufficient in-house personnel and funding.

There are also calls for government policy support to underpin the long-term growth of the Korean hair care industry. The proposal centers on “regulatory harmonization” led by the Ministry of Food and Drug Safety (MFDS) to align regulatory standards with those of major export destination countries—that is, coordinating the varying certification and efficacy review criteria across nations to reduce redundant burdens. Suggested solutions include establishing an information platform that provides details on regulatory amendments by country and practical response strategies, expanding support for overseas certification costs, and setting up a consultation desk to quickly clarify regulatory interpretations.

Professor Kim Ju-deok stated, “Since the cosmetics industry is a regulated sector, it should not be left solely to companies; rather, the Ministry of Food and Drug Safety must take the lead in government-to-government negotiations to coordinate standards with overseas regulatory authorities,” adding “Just as with the U.S. MoCRA, regulations in China and Europe, and halal certification in Southeast Asia, the entry barriers vary from country to country. Exports will only increase if we make efforts to ensure mutual coordination so that partner countries recognize our certifications just as we recognize theirs,” he added.