TikTok-fueled Ok-beauty growth triggers a retail race within the U.S.

On a latest Saturday at an Ulta Magnificence retailer in midtown Manhattan, Denise McCarthy, a mom in her 40s, stood in entrance of a wall of tiny pastel bottles, tubes and compacts. Her cellphone buzzed — one other TikTok from her 15-year-old daughter.

“My youngsters textual content me the TikToks,” she instructed CNBC, scooping Korean lip tints and sunscreens into her basket, destined for Christmas stockings. “I do not even know what half of this does. I simply purchase those they ship me.”

Two aisles over, a bunch of faculty college students in contrast swatches of Korean cushion foundations. A dad requested a retailer affiliate whether or not a viral Korean sunscreen was the one “from the woman who does the ‘prepare with me’ movies.” Close to the checkout, a show of Korean sheet masks mini-packs was almost empty.

Scenes like this are taking part in out throughout the nation.

As soon as a distinct segment reserved for magnificence obsessives, Korean cosmetics — often called Ok-beauty — are breaking totally into the American mainstream, fueled by TikTok virality, youthful and extra numerous customers, and aggressive enlargement from retailers equivalent to Ulta, Sephora, Walmart and Costco.

Ok-beauty gross sales in america are anticipated to prime $2 billion in 2025, up greater than 37% from final 12 months, based on market analysis agency NielsenIQ, far outpacing the broader magnificence market’s single-digit progress.

And at the same time as commerce tensions complicate provide chains, manufacturers and retailers instructed CNBC the momentum is robust.

“We’ve no plans of slowing down and see extra alternatives to penetrate the market,” stated Janet Kim, vp at Ok-beauty model Neogen.

Within the first half of 2025, South Korea shipped a document $5.5 billion price of cosmetics, up almost 15% 12 months over 12 months, and has turn into the main exporter of cosmetics to the U.S., surpassing France, based on knowledge from the South Korean authorities.

“The expansion has been outstanding,” stated Therese-Ann D’Ambrosia, vp of magnificence and private care at NielsenIQ. “If you evaluate that to the broader magnificence market, which is rising at single digits, Ok-beauty is clearly working in a unique gear proper now.”

Facial skincare stays the largest Ok-beauty income driver within the U.S., NielsenIQ reported. Hair care is rising quickest, and hybrid objects equivalent to tinted serums and pores and skin care-infused cushion compacts — sponge cushions soaked with an SPF basis — proceed to surge, the agency stated.

Retailers are racing to reap the benefits of the cosmetics growth, and a turf conflict is underway.

Ulta, which has over 1,400 U.S. shops, launched “Ok-beauty World” in July, to highlight Korean manufacturers and tech gadgets. It is the one main U.S. retailer carrying merchandise from Medicube, a beauty-tech firm touted by celebrities equivalent to Hailey Bieber.

Ulta’s first quarter 2025 report cited a 38% enhance in Korean skincare gross sales, and executives stated in August that new Ok-beauty partnerships contributed to the corporate beating Wall Road expectations for earnings within the second quarter.

Sephora is leaning in as nicely. Its Instances Sq. flagship location now options a complete wall of Korean skincare and cosmetics, and the retailer secured unique U.S. launches for Korean heritage model Hanyul and sensitive-skin label Aestura.

Large-box gamers are piling in too. Costco and Walmart have additionally expanded their assortments, including essences, serums and sheet masks as demand accelerates.

“It is an arms race to see who can capitalize available on the market for Korean merchandise,” Delphine Horvath, professor of cosmetics and perfume advertising and marketing on the Style Institute of Know-how, instructed CNBC. “These merchandise are actually seen as a prime driver of progress for beauty manufacturers, and it appears it’ll preserve booming.”

The competitors is heating up simply as Olive Younger, usually known as the “Sephora of Seoul,” prepares to open its first U.S. retailer in Los Angeles subsequent 12 months. Asian magnificence retailer Sukoshi can be increasing, planning 20 new shops within the coming 12 months throughout cities equivalent to Seattle, Miami, and Austin, Texas.

“Assembly clients the place they’ll contact, really feel and check out what they see on TikTok is vital,” Sukoshi CEO Linda Dang instructed CNBC. “Throughout the trade, firms wish to develop partly as a result of individuals actually do not wish to have to attend for transport or journey all the best way to Korea to get merchandise.”

The growth arrives in the course of the continuing commerce conflict.

This spring, U.S. customers rushed to replenish on Ok-beauty favorites, bracing for value hikes from tariffs, Dang stated. Nevertheless, costs in the end stayed comparatively secure as Korean manufacturers have briefly absorbed the duties, Dang stated, although many are actually exploring various manufacturing or transport strategies.

South Korea finalized a deal with President Donald Trump final month, deciding on a 15% tariff fee as an alternative of the preliminary 25% levy the president introduced in April.

“The system of simple buying and selling is not what it was earlier than tariffs,” Dang instructed CNBC. “That being stated, plenty of firms have labored with advertisers and internally to do their greatest to offset and stop passing these prices on to clients within the U.S.”

Over the previous decade, there’s additionally been an increase in Korean leisure within the U.S. — from pop teams equivalent to BTS and Blackpink to this 12 months’s Netflix hit “KPop Demon Hunters” —which has helped push South Korea’s cultural exports to unprecedented recognition.

“Korean tradition has exploded on each entrance, and that has actually proven up in the case of Ok-beauty,” Dang stated.

Ok-beauty’s “first wave,” which hit the U.S. within the mid-2010s, was outlined by “glass pores and skin,” 10-step routines, snail mucin, cushion compacts and wonder blemish lotions. Most merchandise catered to lighter pores and skin tones, and distribution was restricted to small boutiques, Amazon sellers and early check placements at Ulta and Sephora, magnificence consultants stated.

“The primary wave had some penetration, however nothing like in the present day,” Horvath stated. “It was largely individuals within the know.”

The second wave has been greater, quicker and much more inclusive. It has spanned colour cosmetics, hair and scalp care, physique care, fragrances and high-tech gadgets.

TikTok is the central engine of discovery, particularly for Gen Z and millennial customers, who account for roughly three-fourths of Ok-beauty customers, based on a Private Care Insights market analyst report. Posts tagged “Ok-beauty” or “Korean skincare” draw 250 million views per week, based on shopper knowledge agency Spate. And viral merchandise with glossy packaging usually vanish from cabinets quicker than retailers can restock — notably people who mix mild formulation and low costs, Dang stated.

“TikTok has modified the sport,” Horvath stated. “It is simpler to teach customers on innovation and get the phrase out. Manufacturers are deeply invested in paying influencers, and TikTokers speak about textures, formulation and efficacy.”

Virality has additionally pushed manufacturers to be extra inclusive for youthful and extra numerous customers. After TikTok creators criticized Korean model Tirtir for providing solely three basis shades, the corporate expanded to 40 shades inside months and lots of different firms adopted swimsuit.

The pattern is seen throughout the Americas: 61% of customers in Mexico and almost half in Brazil say Ok-beauty is standard of their nation, in contrast with about 45% within the U.S., based on Statista.

“Conventional retail and e-commerce stay necessary, however TikTok Store is the standout disruptor,” stated Nielsen’s D’Ambrosia. “It is not simply concerning the direct gross sales on that one platform; it is about the way it’s altering the complete discovery and buy journey.”

However the second wave brings its personal dangers. A heavy dependence on virality may expose manufacturers to sudden algorithm adjustments or regulatory scrutiny, D’Ambrosia stated.

“When you’ve gotten a lot progress focused on one platform [such as TikTok], algorithm adjustments may considerably impression discoverability in a single day,” D’Ambrosia stated. “We have seen what occurs when platforms tweak their suggestion engines. … There are positively some warning flags we’re watching.”

Ok-beauty’s endurance, Dang stated, is rooted in an intensely aggressive home Korean market. Developments transfer at breakneck velocity and customers spend extra per capita on magnificence than in another nation, based on South Korean analysis agency KOISRA.

South Korea had greater than 28,000 licensed cosmetics sellers in 2024 — almost double that of 5 years in the past — making a pressure-cooker surroundings that forces fixed experimentation, stated Neogen’s Kim.

“We develop about a whole bunch of formulation every day,” Kim instructed CNBC. “We construct the library and we check outcomes with medical particular person assessments. … Every little thing that is very distinctive and works rather well for skincare, we develop.”

Korean customers churn by means of tendencies rapidly, fueling a pipeline of upstart manufacturers that may go viral and, in some instances, get acquired. For instance, when gooey snail mucin, a gel used to guard and restore individuals’s pores and skin, took off globally, skincare model Amorepacific acquired COSRX, the small Korean model that helped popularize the ingredient, for roughly $700 million.

The following wave of merchandise, analysts predict, are prone to be much more experimental. 

Manufacturers are betting on buzzy elements equivalent to DNA extracted from salmon or trout sperm that early analysis suggests could assist calm or restore pores and skin. They’re additionally increasing into biotechnology.

“Ok-beauty could be very data-driven. [Artificial intelligence] helps us get quick outcomes for content material, method improvement, and promoting,” Kim stated. “In Korea, they began speaking about supply techniques. They’re superb with biotechnology.”