The TikTok-fueled K-beauty boom is sparking a retail race in the US

On the last Saturday in Alta Beauty In a store in midtown Manhattan, Denise McCarthy, a mother in her 40s, stood in front of a wall filled with small pastel bottles, tubes and compacts. Her phone rang — another TikTok from her 15-year-old daughter.

“My kids are sending me TikToks,” she told CNBC, as she placed Korean lip colors and sunscreen in her Christmas stocking basket. “I don’t even know what half of this does. I just buy what they send me.”

In the two aisles, a group of college students compared models of Korean foundation. A parent asked a store associate if the viral Korean sunscreen was “the product from the girl who does the ‘get ready with me’ videos.” Near the checkout area, the display of small packages of Korean sheet masks was nearly empty.

Scenes like this are happening all over the country.

Once a niche reserved for beauty obsession, Korean beauty products — known as K-beauty — have been making a full-scale break into the American mainstream, fueled by the rise of TikTok, younger, more diverse shoppers, and aggressive expansion from retailers like Ultasephora, Walmart and Costco.

Korean cosmetics sales in the United States are expected to exceed $2 billion in 2025, up more than 37% from last year, according to market research firm NielsenIQ, far outpacing broader growth in the broader beauty market.

Even as trade tensions complicate supply chains, brands and retailers told CNBC that momentum is strong.

“We have no plans to slow down and see more opportunities to penetrate the market,” said Janet Kim, vice president of K-beauty brand Neogen.

In the first half of 2025, South Korea shipped $5.5 billion worth of cosmetics, up nearly 15% year-on-year, and became the leading exporter of cosmetics to the United States, overtaking France., According to South Korean government data.

“The growth has been remarkable,” said Therese Anne D’Ambrosia, vice president of beauty and personal care at NielsenIQ. “When you compare that to the broader beauty market, which is growing in the single digits, it’s clear that K-beauty is operating differently right now.”

NielsenIQ reports that facial skin care remains the largest driver of K-beauty revenue in the United States. Hair care is growing faster, and hybrid items like tinted serums and skincare compacts — sponge pads soaked in SPF foundation — continue to rise, the company said.

Retailers are racing to capitalize on the cosmetics boom, and a turf war is underway.

Ulta, which has more than 1,400 U.S. stores, launched “K-beauty World” in July, to highlight Korean tech brands and devices. It is the only major US retailer that sells products from Medicube, a beauty technology company promoted by celebrities such as Hailey Bieber.

Ulta’s first-quarter 2025 report noted a 38% increase in Korean skincare sales, and executives said in August that new K-beauty partnerships contributed to the company beating Wall Street’s second-quarter profit expectations.

Sephora is leaning too. Its flagship location in Times Square now features an entire wall of Korean skincare and cosmetics, and the retailer has secured exclusive US launches for Korean heritage brand Hanyul and sensitive skin brand Aestura.

The big players are also piling on. Costco and Walmart have also expanded their assortments, adding essences, serums and sheet masks as demand accelerates.

“It’s an arms race to see who can tap into the Korean product market,” Delphine Horvath, a professor of cosmetics and fragrance marketing at the Fashion Institute of Technology, told CNBC. “These products are now seen as a key driver of growth for cosmetics brands, and look set to continue to thrive.”

Competition is heating up as Olive Young, often called the “Sephora of Seoul,” prepares to open its first U.S. store in Los Angeles next year. Asian cosmetics retailer Sukushi is also expanding, planning to open 20 new stores next year in cities such as Seattle, Miami and Austin, Texas.

“Meeting customers where they can touch, feel and experience what they see on TikTok is key,” Linda Dang, CEO of Sukoshi, told CNBC. “Across the industry, companies are looking to expand in part because people don’t really want to wait for shipping or travel to Korea to get products.”

The boom comes in the middle of an ongoing trade war.

This spring, American shoppers rushed to stock up on favorite Korean beauty products, preparing for higher prices due to tariffs, Dang said. However, prices ultimately remained relatively stable, with Korean brands temporarily absorbing the fees, Dang said, though many are now exploring alternative manufacturing or shipping methods.

South Korea finalized an agreement with President Donald Trump last month, settling on a 15% tariff rate instead of the initial 25% tax the president announced in April.

“The easy trade system is no longer what it was before the tariffs,” Dang told CNBC. “However, many companies have worked with advertisers and internally to do everything they can to offset these costs and prevent them from being passed on to customers in the United States.”

Over the past decade, there has also been a rise in Korean entertainment in the United States — from pop groups like BTS and Blackpink to this year. Netflix hit “KPop Demon Hunters” – which helped propel South Korea’s cultural exports to unprecedented popularity.

“Korean culture has exploded on all fronts, and it really shows when it comes to K-beauty,” Dang said.

K-beauty’s “first wave,” which hit the U.S. in the mid-2010s, was defined by “glass skin,” 10-step procedures, snail mousse, compact pillows, and beauty creams. Most of the products meet the needs of light skin, and distribution was limited to small stores. Amazon Sellers and early test placements are at Ulta and Sephora, beauty experts said.

“The first wave saw some breakout, but nothing like today,” Horvath said. “Most of them were people who knew.”

The second wave was larger, faster and much more comprehensive. It spanned color cosmetics, hair and scalp care, body care, fragrances and high-tech devices.

TikTok is a central driver of discovery, especially for Gen Z and millennial shoppers, who account for nearly three-quarters of K-beauty consumers, according to a market analyst report from Personal Care Insights. Posts tagged with “K-beauty” or “Korean skincare” attract 250 million views weekly, according to consumer data firm Spate. Massive products with sleek packaging often disappear from shelves faster than retailers can restock them — especially those that combine cute formulas with low prices, Dang said.

“TikTok has changed the game,” Horvath said. “It’s easier to educate consumers about innovation and spread information. Brands are investing heavily in paying influencers, and TikTokers are talking about combinations, formulas, and effectiveness.”

The widespread reach has also pushed brands to be more inclusive of younger, more diverse shoppers. After TikTok creators criticized Korean brand Tirtir for only offering three foundation shades, the company expanded to 40 shades within months and several other companies followed suit.

The trend is evident across the Americas: 61% of consumers in Mexico and nearly half in Brazil say Korean cosmetics are popular in their country, compared to about 45% in the United States, according to Statista.

“Traditional retail and e-commerce are still important, but TikTok Shop is the standout disruptor,” Nielsen’s D’Ambrosia said. “It’s not just about direct sales on that platform, it’s about how it changes the entire discovery and purchasing journey.”

But the second wave carries its own risks. Relying too heavily on virality can expose brands to sudden algorithm changes or regulatory scrutiny, D’Ambrosia said.

“When you have a lot of growth concentrated on one platform [such as TikTok]“Algorithm changes can dramatically impact discoverability overnight,” D’Ambrosia said. “We’ve seen what happens when platforms tweak their recommendation engines. … There are definitely some warning signs we’re watching.”

Dang said the staying power of Korean cosmetics is rooted in the highly competitive domestic Korean market. Trends move incredibly quickly and consumers spend more per capita on beauty than any other country, according to South Korean research firm KOISRA.

South Korea had more than 28,000 licensed cosmetics sellers in 2024 — nearly double the number five years ago — creating a pressure cooker environment that forces constant experimentation, Neogen’s Kim said.

“We develop about hundreds of formulas every day,” Kim told CNBC. “We build the library and test the results through individual clinical tests…. Whatever is really unique and works really well for skin care, we develop it.”

Korean consumers navigate trends quickly, fueling a pool of emerging brands that can quickly go viral and, in some cases, be acquired. For example, when snail gel, a gel used to protect and repair people’s skin, took off globally, skincare brand Amorepacific acquired COSRX, the small Korean brand that helped popularize the ingredient, for nearly $700 million.

Analysts expect the next wave of products to be more experimental.

Brands are betting on interesting ingredients like DNA extracted from salmon or sperm from trout, which early research suggests may help soothe or repair skin. It is also expanding into biotechnology.

“K-beauty is very data-driven. [Artificial intelligence] “It helps us get quick results for content, formula development and advertising,” Kim said. “In Korea, they’re starting to talk about delivery systems. They’re very good at biotechnology.”