Analysts note that K-beauty is diversifying its export growth engines by extending the proven success formula established in North America and Europe into emerging markets. According to The Korea Economic Daily, K-beauty exports to the United Arab Emirates (UAE) from January to October 2025 reached USD 209.91 million (approximately KRW 300 billion), marking the first time on an annual basis that exports have surpassed KRW 300 billion. Exports to the UAE, which stood at only USD 58.21 million as recently as 2022, increased to USD 89.03 million in 2023 and exceeded USD 100 million for the first time last year. Over the past four years, the export volume has more than tripled. A similar expansion trend is evident in the Latin American market. From January to October this year, cosmetics exports to the three largest Latin American markets for K-beauty—Mexico, Brazil, and Argentina—reached a record high of USD 91.85 million (approximately KRW 130 billion). Following a surge of more than 60%, from USD 34.77 million in 2023 to USD 57.15 million last year, exports have continued to grow steadily. The reason K-beauty companies are actively targeting the Middle Eastern and Latin American markets lies in their ability to apply the U.S.-style K-beauty success model with relative ease. Similar to North America and Europe, K-beauty consumption in these regions is largely driven by TikTok. An industry insider explained, “The structure in which consumers encounter products through short-form content and proceed directly to purchase closely resembles the U.S. market, resulting in relatively low marketing entry barriers.” Another key advantage is the high potential to become a “first mover” in these markets. Since there are no overwhelmingly dominant brands in certain product categories, companies can secure a meaningful market share even at an early stage of entry. Overall market entry barriers are also considered lower than those in North America and Europe. In particular, the Middle East is attractive from a logistics cost perspective, as air and maritime freight rates are significantly lower than those to the United States. Driven by intensified efforts to penetrate the Middle Eastern and Latin American markets, Korea’s K-beauty exports are expected to expand further next year (The Korea Economic Daily, December 12, 2025). |
