South Korean beauty products, particularly sunscreens, have been a hot commodity in the US market, with consumers stockpiling them in anticipation of price hikes following the imposition of tariffs by the Trump administration. Despite the concerns over increased prices, K-beauty is expected to maintain its competitive edge in the US market.
In 2024, South Korea surpassed France as the largest exporter of cosmetics to the US, capturing a significant market share. Among the various K-beauty products, sunscreens have emerged as a top choice for American consumers. Reports suggest that South Korea-made sun care products are projected to experience a substantial growth in e-commerce sales in the US.
Unlike in Europe and Asia, where sunscreens are classified as cosmetics, the US Food and Drug Administration (FDA) categorizes them as over-the-counter drugs. This regulatory distinction has led US consumers to view Korean sunscreens favorably due to their perceived superiority in providing a wider range of benefits, such as better UV protection, lightweight texture, and compatibility with makeup.
Lauren Lee, the founder of K-beauty retailer StyleStory, highlighted that the tariffs imposed on South Korean imports could impact consumer confidence and lead to a short-term decline in sales. However, she expressed optimism about the resilience of Korean cosmetics in the US market, citing their competitive pricing even after the price increase.
Major Korean beauty brands with a presence in the US are exploring strategies to mitigate the impact of tariffs. Some companies are considering ramping up production at their US facilities, while others are contemplating setting up manufacturing plants in the country to minimize supply disruptions and potential price hikes.
Industry experts emphasize the importance of adapting to market changes, with some brands likely to explore alternative markets to offset the impact of tariffs. Markets such as China, Japan, Hong Kong, Vietnam, Russia, and Taiwan have emerged as key importers of K-beauty products, offering potential opportunities for brands seeking to diversify their export destinations.
Despite the challenges posed by tariffs, Korean beauty brands are leveraging their competitive pricing and product quality to maintain their foothold in the US market. By exploring innovative strategies and adapting to evolving trade dynamics, K-beauty is poised to navigate the uncertainties and sustain its position amid changing market conditions.