According to market research firm NielsenIQ, K-Beauty sales in the United States skyrocketed 37.2% in the 52 weeks ended Aug. 9 to reach $2 billion, driven by innovative ingredients like snail mucin and fermented extracts, affordable luxury positioning and TikTok Shop. Meanwhile, market research firm Circana estimates the American beauty industry registered single-digit growth in the first nine months of this year.
South Korea’s cosmetics prowess is transforming the global beauty market. In an article on the South Korean conglomerate Amorepacific’s transformation from domestic stalwart to export powerhouse, The New York Times points out that “South Korea surpassed the United States to become the world’s second-largest cosmetics exporter, after France, in the first half of 2025. Cosmetics exports surged 15% in the six-month period, to a record $5.5 billion, fueled by growth in the United States and Europe, according to data from the South Korean government.”
There are plenty of South Korean beauty brands and retailers intent on keeping K-Beauty top of mind among American consumers. Riding the latest K-Beauty wave, Olive Young, the biggest beauty retailer in South Korea with over 1,300 stores, is slated to make its U.S. retail debut in May with Los Angeles area stores in Pasadena and Century City, with additional store openings to follow in 2026.
Speaking to Beauty Independent last month, Krupa Koestline, cosmetic chemist and founder of KKT Labs, argued that a big reason for the difference in growth between K-Beauty and beauty’s homegrown industry is South Korean brands’ willingness to take risks. As an example, she mentioned VT Cosmetics’ Reedle Shot, which is compared to “microneedling in a bottle,” containing so-called micro-needles made from silica. She says, “I can’t imagine an American brand taking that risk.”
To unlock future growth, Beauty Independent is wondering if the U.S. beauty industry should pull from K-Beauty’s successes. So, for this edition of our ongoing series posing questions relevant to indie beauty, we asked 10 contract manufacturers, consultants and cosmetic chemists the following: What’s the South Korean beauty industry doing that American companies should be emulating? What constraints—regulatory, cultural, business-related or otherwise—might prevent U.S. beauty companies from making those changes? For companies willing to try, could K-Beauty strategies be implemented practically?
-
Krupa Koestline Founder and Cosmetic Chemist, KKT Labs K-Beauty’s success comes from a culture of fearless experimentation. Brands there trust their labs, take calculated risks and move fast. They co-develop ideas instead of just brief them. In the U.S., we’ve built an industry that moves in the opposite direction: trend-first, innovation-second. Too many brands look sideways at what’s performing on social media rather than looking forward at what’s possible through science.
That lack of true R&D collaboration is what slows us down. If your manufacturer isn’t bringing you innovation, that’s where independent labs like ours come in. Innovation labs exist to bridge that gap, to think beyond what’s been done before, build new IP and make sure science is leading the storytelling, not chasing it. If we want to match K-Beauty’s pace, we need to stop copying what’s trending and start empowering the people who can actually create what’s next.
- Anete Vabule Co-Founder and CEO, Selfnamed
What South Korean beauty brands do really well is innovate with purpose. They listen closely to what people actually struggle with in their routines and respond with products that solve those problems in ways that are both effective and genuinely interesting to use.
This means that consumers get not just results, but also the joy of exploring the product. Think of formulas that change texture as you apply them, serums that look like dessert, products that bring a little bit of surprise into everyday care. They take science seriously, but they also take the “play” part seriously.
And on top of that comes another angle—speed. Fast development, fast testing cycles, constant iteration. They don’t spend three years perfecting a single “hero” formula. They experiment, launch, learn, tweak, repeat. That lets them respond to changing consumer needs practically in real time.
This kind of innovation isn’t blocked by regulation or culture or big corporate structures. You don’t need to invent the next snail mucin trend to be innovative. You need flexible production. Most American brands are locked into large minimum batches and slow development pipelines, which kill the space for experimentation. You can’t test a bold new idea if you’re forced to go all in on 10,000 units.
If U.S. beauty brands want to take a page from K-Beauty, the first step is curiosity. Spend more time with consumers. Watch what creates joy in their routines and where the boredom sets in. Challenge your product teams to have fun. Build prototypes that feel a little wild and quickly launch limited edition products that you’re not 100% sure about. The products that will resonate with buyers have a way of carrying a brand forward.
- Tish Poling Co-Founder, President and Chief Development Officer, International Products Group
One of the biggest reasons K-Beauty continues to set global trends is that South Korea takes bold risks with product launches. They enjoy a culture that rewards experimentation. They love trying new textures, formats and skin routines.
They launch limited editions and seasonal drops often, which create excitement, not fatigue. Their feedback loops are short. Brands reformulate in weeks, not years, based on real-world reviews. South Korea’s retailers such as Olive Young and Naver Shopping function as testing labs, allowing for micro-launches at minimal risk.
K-Beauty has developed a full-turnkey manufacturer + brand partnership model. The manufacturer pitches the brand quarterly, not the other way around. They create formulas, perform all R&D efforts and develop complete packaging designs. This is also IPG’s model, serving as the behind-the-scenes innovation partner to our customers.
Korea’s Ministry of Food and Drug Safety (MFDS) maintains safety oversight, but allows quicker ingredient approvals than the FDA. Functional cosmetics (whitening, wrinkle care, SPF) are recognized and regulated in South Korea, but still easier to bring to market than U.S. OTCs. Beauty is a national obsession in South Korea. Although the U.S. loves our skincare, fragrance and haircare, the K-Beauty consumer uses eight to 10 products daily.
If we genuinely want to compete with South Korea, we need to adopt a “courage-versus-caution” mentality in bringing products to market.
IPG believes the future of beauty in the U.S. belongs to manufacturers who constantly innovate faster, cleaner and braver with brands and retailers who want to experiment with newness rather than only launch three times a year.
We believe the next wave of American Beauty innovation will come from marrying K-beauty’s fearless creativity and speed to market with U.S. grade compliance and clean manufacturing. This mindset will make our U.S.-born products irresistible.
- Laura Horne VP Sales and Marketing, FP Labs
Perception is that K-Beauty is different than American beauty, and while there are some true differences, some of that perception comes from the speed with which K-Beauty companies work, the unique packaging they use, the ingredient stories that they tell and the risks that they are willing to take.
Many brands have already incorporated learnings from K-Beauty into their go-to-market strategy: teaching instead of just marketing, taking a holistic approach, keeping it fun and fast, test and learn to get feedback on products and build engagement from consumers, finding or creating unique packaging, using unique, efficacious ingredients that build further interest in the brand and creating simple, effective rituals with communication on how to use the products.
Contract manufacturers should invest in R&D to reduce the time needed for brands to go to market, build different textures and experiment with different ingredients so that brands can move quick with key points of difference.
U.S. brands will need to overcome constraints in many areas of their go-to-market plan to be able to deliver more nimble launches that can mirror K-Beauty brands. Manufacturing constraints like batch size, packaging availability or raw material lead times can make it challenging to move quickly.
Ensuring regulatory requirements are met with testing and claims substantiation is rigorous. Retail expectations on launch timing due to regularly scheduled resets or constraints in their supply chain have the potential to restrict off cycle launches.
The cost of marketing and acquisition of customers can be rather high, especially for smaller brands that are less well known. The length of time to develop custom formulations that offer points of difference can mean that a consumer trend has already changed before the product is has launched, so a brand is late to market.
Implement a test-and-learn strategy that can potentially turn those constraints into positives. Use contract manufacturer stock formulations that allow for minimal investment and quick launch timelines, keep launches simple and timing flexible by launching online only to learn quickly.
- Shannaz Schopfer Founder and CEO, The Beauty Architects
K-Beauty’s standout strength isn’t just in its products, it’s in how it blends science, storytelling and sensory experience into a seamless ritual. South Korean brands treat every aspect of a product, the formula, texture, packaging and even the marketing narrative, as part of a holistic experience.
They make skincare playful, aspirational and emotionally engaging, which drives consumer excitement and loyalty. They also innovate fearlessly, testing novel ingredients, delivery systems and textures that encourage curiosity and experimentation.
Several factors hold U.S. brands back. Stricter regulatory frameworks slow experimentation with certain actives and claims. Culturally, many American consumers prioritize simplicity and efficiency over multistep or experimental routines, making adoption of more ritualized approaches challenging.
From a business perspective, supply chains and larger production models can make rapid, small-batch experimentation cost-prohibitive. Finally, risk aversion, both from investors and brand teams, often limits bold experimentation in textures, delivery systems, or packaging innovations.
Brands willing to embrace this approach don’t need to copy K-Beauty step by step, they can translate the mindset rather than the mechanics. For example:
- Product-as-experience: Focus on textures, scents and interactive formulas that invite consumer engagement. Even subtle sensory surprises make routines feel special.
- Story-driven routines: Curate products into simple, aspirational sequences that feel like a ritual but remain approachable for U.S. consumers.
The overarching lesson is that K-Beauty teaches brands to combine innovation, emotional engagement and adaptability. U.S. companies that adopt this philosophy, while navigating regulatory and cultural realities, can differentiate themselves in a crowded marketplace and create products that consumers genuinely love to use.
- Megan Cox Founder, Innacos Labs
South Korean beauty succeeds through one core principle: They deeply understand their market dynamics. Korean consumers demand efficacy above all else. With advanced biotech capabilities and domestic ingredient manufacturers at their disposal, well-funded Korean brands can access or perhaps even develop proprietary actives quickly. When local suppliers can't deliver, China and Japan are right there. This proximity creates a rapid innovation cycle.
At In-cosmetics Korea this year, I saw this firsthand. While the reedle shot made headlines, multiple suppliers were already offering different variations of spicules. Dozens offered exosomes. In Asia, innovation isn't rare, it’s the baseline.
Korean brands also excel at marrying texture with performance. They'll formulate whatever's necessary to achieve both the sensorial experience and measurable results consumers expect.
This isn't optional either. South Korea's skincare market is ruthlessly competitive. Consumers have access to endless aesthetic clinics offering injections and IVs as alternatives to topicals. You can walk in and get nearly anything done during your lunch break. Without proven results and compelling marketing, brands simply disappear.
This pressure forces Korean brands to master every aspect: ingredients, benefits, clinical results and storytelling. They can't coast on marketing alone.
American brands, by contrast, often lead with marketing while treating formulation as secondary. If U.S. brands matched Korea's commitment to ingredient innovation and efficacy, while leveraging their marketing strengths, they could absolutely compete. But, currently, they're ceding ground to Korean brands even domestically because marketing without substance only goes so far.
The path forward requires U.S. brands to embrace the same rigor: invest in R&D, take calculated risks with novel ingredients and never compromise on efficacy. The marketing playbook is strong here, it just needs products that deliver on their promises.
- Fred Khoury President, Above Rinaldi Labs
The South Korean beauty industry thrives on speed, bold experimentation and a willingness to take risks, qualities that have fueled its U.S. boom. K-Beauty brands push boundaries in both ingredients and delivery formats. They pair innovation with an affordable luxury positioning and leverage platforms like TikTok Shop to reach consumers directly. The takeaway for American brands: growth comes from marrying science, storytelling and agility.
The U.S. landscape has limits. Regulatory scrutiny is tighter, particularly around novel delivery systems and ingredient claims. Cultural caution means consumers may hesitate with products that feel experimental or clinical. And many American companies are built for scale, not rapid iteration, slower timelines and bigger overheads make bold experimentation riskier.
Still, there’s a path forward. Brands can explore high-impact safe analogues, fermented botanicals, enzyme actives, encapsulated delivery systems while staying compliant. Partnering with agile contract manufacturers enables faster prototyping and small-batch testing. Education-focused marketing helps demystify new technologies and build trust. A digital-first strategy with TikTok, Instagram and live commerce can generate buzz, reduce launch risk and mirror K-Beauty’s viral momentum.
Ultimately, U.S. beauty doesn’t need to copy K-Beauty ingredients for ingredients. The lesson is mindset, prioritize fast innovation, take calculated risks and tell compelling stories that excite consumers. Companies that navigate regulatory and cultural constraints while embracing this approach are positioned to unlock the next wave of growth.
- Anay Kacharia Director of R&D, iLABS
The South Korean beauty industry has been at the forefront of innovation for multiple reasons. First and foremost, consumers there are much more open to taking risks and trying something new from an ingredient and texture perspective, and with the rising popularity of K-dramas and K-pop, that openness has only grown. We have clearly seen this play out with ingredients like snail mucin, PDRN and Jeju Island extracts as well as with technologies like reedle shot.
However, there is a significant gap when it comes to the focus that North American markets place on INCI/regulatory considerations and what consumers here are willing to accept. At iLabs, we strive to find unique ways to make innovative Korean technologies more palatable to the North American market, whether by working with suppliers to achieve similar efficacies through natural extracts or by swapping out non-clean ingredients while still delivering an elevated experience.
- Richard Omordia Head of Business Development and Outreach, Crida Labs
K-Beauty is winning now because of its fast cycles, not so stringent testing and affordability. U.S. brands could borrow that energy, but must balance it with strong safety data, proof of concept and compliance. We can unlock the next growth wave if we pair K-Beauty’s curiosity with U.S. quality and rigorous testing.
The challenge here is not just about creativity; it’s regulation and liability. The U.S. is a very litigious society as you well know. Large retailers and premium channels will generally require robust safety and efficacy data and proof before any listing.
Korean brands, on the other hand, can drop almost any product overnight, while an American brand would face months of testing and legal review, especially on those novel experimental items like "microneedling in a bottle.”
- Thomas Mooy CEO, Allure Beauty Concepts
At Allure Beauty Concepts, we’re inspired by K-Beauty’s curiosity and courage to innovate. It’s a reminder that great ideas come from being willing to experiment, to blend science and creativity together.
For U.S. manufacturers, the opportunity isn’t about copying that model, but adapting its spirit. We can take what makes K-Beauty so dynamic—the fast innovation cycles—ingredient storytelling and sensorial experience and bring it to life through American craftsmanship and partnership. That’s how we create real value for brands and, ultimately, for the people using their products.
If you have a question you'd like Beauty Independent to ask contract beauty manufacturers, cosmetic chemists or consultants, send it to editor@beautyindependent.com.
Leave a Reply
You must be logged in to post a comment.