South Korea’s beauty industry achieved unprecedented success in 2024, with both production and export figures reaching historic highs, according to an analysis conducted by the Ministry of Food and Drug Safety on the country’s cosmetics production, export, and import performance.
The domestic cosmetics production performance reached 17.5426 trillion won, marking a remarkable 20.9% increase compared to the previous year. Export revenues climbed to $10.2 billion, representing a substantial 20.3% year-over-year growth and setting a new all-time record for the industry.
This exceptional performance has elevated South Korea’s position in the global cosmetics export market, surpassing Germany to claim the third position worldwide. The current ranking places France in first place, followed by the United States in second, with South Korea now occupying the third spot ahead of Germany.
Basic skincare products emerged as the primary driver of production growth, with manufacturing output reaching 10.2961 trillion won and breaking through the 10 trillion won threshold for the first time. This category’s success was particularly evident in lotions and creams, essences and oils, and face packs and masks, which collectively contributed to the overall production increase.
Color cosmetics also showed strong performance, with lip products leading the growth in this segment. Personal cleansing products, particularly foam cleansers, similarly contributed to the increased production figures across the industry.
The functional cosmetics segment demonstrated outstanding performance with production reaching 7.3515 trillion won, representing a remarkable 35.2% increase compared to the previous year. Anti-aging and wrinkle improvement products particularly drove this growth, reflecting growing consumer demand for advanced skincare solutions.
While China remained South Korea’s largest export destination with $2.49 billion in sales despite a 10.3% decrease, the industry successfully diversified its market presence. The United States showed exceptional growth with a 56.4% increase in exports, while Japan recorded a substantial 29.1% rise. These two countries have now positioned Korean cosmetics as their top choice, surpassing French products in market preference.
The industry’s global reach expanded significantly with high export growth rates recorded in emerging markets including the United Arab Emirates, Indonesia, and Poland. The total number of export destination countries increased to 172, demonstrating the broadening international appeal of Korean cosmetics.
The cosmetics industry’s infrastructure showed significant expansion, with the number of cosmetics retail companies capable of contract manufacturing doubling over the past five years. Manufacturing companies also experienced substantial growth, increasing by approximately 1.5 times during the same period.
The scale of operations among industry players expanded notably, with companies recording production values exceeding 100 billion won increasing dramatically from 12 companies in 2023 to 21 companies in 2024. Eight companies demonstrated exceptional performance by achieving production growth rates exceeding 100% compared to the previous year, including Dalba Global, The Founders, Skin Angel, TIRTIR, L&P Cosmetic, Godiva Global, Binau, and APR.
