On a recent Saturday afternoon at an Ulta Beauty store in midtown Manhattan, shoppers crowded around displays of pastel-colored Korean beauty products. Among them was Denise McCarthy, a mother in her 40s, filling her basket with lip tints and sunscreens her teenage daughter had sent via TikTok.

“My kids text me the TikToks,” she said. “I don’t even know what half of this does. I just buy the ones they send me.”

Nearby, college students compared cushion foundations, a father searched for a viral sunscreen, and a display of Korean sheet mask packs was nearly sold out. Similar scenes are now unfolding across the country as Korean cosmetics — widely known as K-beauty — experience an unprecedented surge in American demand.

Once a niche category for beauty enthusiasts, K-beauty has entered the mainstream, powered by TikTok virality, younger and more diverse shoppers, and a major push from retailers including Ulta, Sephora, Walmart, and Costco. According to NielsenIQ, K-beauty sales in the U.S. are projected to surpass $2 billion in 2025, a more than 37% jump from the previous year — far outpacing the overall beauty market’s single-digit growth.

Despite global trade uncertainties, brands and retailers say momentum remains strong. “We have no plans of slowing down,” said Janet Kim, vice president at Neogen. “There are more opportunities to penetrate the market.”

South Korea exported a record $5.5 billion in cosmetics in the first half of 2025, up nearly 15% year over year, overtaking France as the top cosmetics exporter to the United States.

Retailers Compete in a Rapidly Expanding Market

Facial skin care remains the largest revenue driver, while hair care is the fastest-growing category. Hybrid products — including tinted serums and SPF-infused cushion compacts — are also rising sharply in popularity.

Major retailers are racing to capture the boom. Ulta, with over 1,400 stores nationwide, introduced “K-beauty World” in July, its largest spotlight on Korean brands to date. It remains the only major U.S. retailer carrying products from beauty-tech company Medicube, endorsed by prominent celebrities.

Ulta reported a 38% increase in Korean skin care sales in the first quarter of 2025, crediting new brand partnerships for exceeding earnings expectations.

Sephora is expanding aggressively as well. Its Times Square flagship now features a full wall dedicated to Korean beauty, and the retailer has secured exclusive U.S. launches for heritage brands Hanyul and Aestura.

Costco and Walmart have added essences, serums, and sheet masks, while specialty retailer Sukoshi — which focuses on Asian beauty — plans 20 new stores across major U.S. cities.

“It’s an arms race,” said Delphine Horvath of the Fashion Institute of Technology. “Korean products are now seen as major growth drivers.”

The competitive landscape is shifting further as Olive Young — often referred to as “the Sephora of Seoul” — prepares to open its first U.S. store in Los Angeles.

Navigating Tariffs Amid Surging Demand

The K-beauty boom comes amid ongoing U.S.–South Korea trade tensions. Earlier this year, consumers rushed to stock up ahead of expected tariff-related price hikes. While South Korea and the U.S. ultimately agreed to a 15% tariff — instead of the initially proposed 25% — many Korean brands have temporarily absorbed costs to avoid price hikes.

“That easy system of trading isn’t what it was before tariffs,” said Sukoshi CEO Linda Dang. “But brands have worked hard to keep prices stable.”

Retailers say demand continues to outpace any trade-related uncertainty.

A ‘Second Wave’ Powered by Culture and Technology

K-beauty’s growth in the U.S. is part of a broader global rise in Korean entertainment — from music groups like BTS and Blackpink to streaming hits such as “KPop Demon Hunters.”

The first wave of K-beauty in the mid-2010s introduced American shoppers to glass skin, 10-step routines, snail mucin, BB creams, and cushion foundations. But distribution was limited, and products catered mainly to lighter skin tones.

The second wave is larger, more diverse, and more inclusive. It spans skin care, makeup, scalp care, body care, fragrance, and beauty-tech devices.

TikTok is central to its acceleration. Posts tagged “K-beauty” or “Korean skin care” receive an estimated 250 million views per week. Viral products often sell out instantly — especially those combining gentle ingredients with low prices.

“TikTok has changed the game,” Horvath said. “Brands are investing heavily in influencers, and creators explain texture, formulas, and results in ways consumers understand.”

Virality is also pushing brands to be more inclusive. After criticism over limited shade ranges, brands such as Tirtir expanded foundation offerings from three shades to forty in a matter of months.

Across the Americas, demand continues to rise: 61% of consumers in Mexico and nearly half in Brazil report K-beauty is popular in their country.

However, analysts warn that heavy dependence on TikTok brings risks. “Algorithm changes could significantly impact discoverability overnight,” said NielsenIQ’s Therese-Ann D’Ambrosia.

Relentless Innovation Fuels K-Beauty’s Edge

Experts say the industry’s rapid innovation stems from intense domestic competition in South Korea. The country has more than 28,000 licensed cosmetics sellers — nearly double the number from five years ago — creating an environment where trends evolve at record speed.

Companies like Neogen develop hundreds of formulas each day, testing ingredients and formulations through continuous clinical trials.

This cycle has led to multiple global breakouts. When snail mucin became a worldwide sensation, COSRX — a key brand behind the trend — was acquired by beauty conglomerate Amorepacific for around $700 million.

Analysts expect the next phase of innovation to become even more experimental. Emerging formulas include DNA extracted from salmon or trout sperm, early research suggesting potential skin-calming and repair benefits. Brands are also exploring biotechnology and AI-enhanced product development.

“K-beauty is very data-driven,” Kim said. “Artificial intelligence helps us develop formulas faster, analyze results, and innovate in delivery systems.”