South Korea is known for its significant exports to the United States, including automobiles and smartphones, but its beauty products have garnered a uniquely enthusiastic following. The term “K-beauty” encompasses a variety of skincare, makeup, and cosmetics from South Korea, which are often praised for their quality and affordability. As a result, demand for these products has increased in recent years, aided by the global popularity of South Korean culture.
In 2024, American consumers are estimated to have spent $1.7 billion on K-beauty products, marking a more than 50% increase from the previous year. This growth can be attributed to the distinctive ingredients used in K-beauty, such as heartleaf and snail mucin, which are less commonly found in Western products. However, a recent 15% import tax imposed on South Korean goods by the US government may impact price structures, increasing costs for consumers.
Retailers in the US, like Santé Brand, experienced a nearly 30% surge in orders shortly after the tariff announcement, suggesting that customers are preemptively stocking up on K-beauty products due to uncertainty about future pricing. Other retailers, such as Senti Senti, report similar increases in orders as they anticipate the economic effects of tariffs.
Analysts indicate that while larger K-beauty brands may absorb the increased costs without significantly raising prices, smaller firms might struggle. The impact of these tariffs is expected to unfold gradually, as many products currently available were priced before the new tariff measures were implemented.
Furthermore, recent trade agreements have extended the same tariff rate to cosmetics from Japan and the European Union, raising the question of whether consumers in the US will shift toward domestic beauty products. Despite attempts to find suitable alternatives, some consumers, such as Pearl Mak, remain doubtful about the efficacy of American-made products compared to K-beauty options.
Source: https://www.bbc.com/news/articles/cqxgrn2z95xo?at_medium=RSS&at_campaign=rss