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

“My kids are texting me the TikToks,” she told CNBC, as she shoveled Korean lip tints and sunscreen into her basket, destined for Christmas stockings. “I don’t even know what half of this does. I just buy the one they send me.”

Two aisles away, a group of students compared samples of Korean pillow foundations. A father asked a store employee if a viral Korean sunscreen came “from the girl who makes the ‘get ready with me’ videos.” At the checkout counter, a display of Korean mini-packs of sheet masks was almost empty.

Such scenes are playing out across the country.

Once a niche reserved for beauty enthusiasts, Korean cosmetics – known as K-beauty – are now fully penetrating the American mainstream, fueled by TikTok virality, younger and more diverse shoppers, and aggressive expansion from retailers like UltaSephora, Walmart And Costco.

According to market research firm, K-beauty sales in the United States are expected to reach more than $2 billion by 2025, more than 37% more than last year NielsenIQwhich easily exceeds the single-digit growth of the broader beauty market.

And even as trade tensions complicate supply chains, brands and retailers tell CNBC the momentum is strong.

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

In the first half of 2025, South Korea shipped a record $5.5 billion worth of cosmetics, up nearly 15% year-on-year, and has become the largest exporter of cosmetics to the US, surpassing France., This is evident from data from the South Korean government.

“The growth has been remarkable,” he says Therese-Ann D’Ambrosiavice president of beauty and personal care at NielsenIQ. “When you compare that to the broader beauty market, which is growing in the single digits, K-beauty is clearly operating in a different gear right now.”

Facial skin care remains the largest revenue generator for K-beauty in the U.S., NielsenIQ reports. Hair care is growing the fastest, and hybrid products such as tinted serums and skincare-infused cushion compacts – sponge cushions soaked in an SPF foundation – continue to rise, the company said.

Retailers are rushing 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 showcase Korean brands and tech devices. It is the only major U.S. retailer to offer products Medicubea beauty tech company touted by celebrities like Hailey Bieber.

Ulta’s first quarter 2025 report noted a 38% increase in sales of Korean skin care products, and executives said in August that new K-beauty partnerships helped the company beat Wall Street earnings expectations in the second quarter.

Sephora is also leaning in. The Times Square flagship location now features a slew of Korean skincare products and cosmetics, and the retailer has secured exclusive U.S. launches for Korean heritage brand Hanyul and sensitive skin label Aestura.

Major players are also flocking. Costco and Walmart have also expanded their lineups, adding essences, serums and sheet masks as demand increases.

“It’s an arms race to see who can capitalize on the market for Korean products,” Delphine Horvath, a professor of cosmetics and fragrance marketing at the Fashion Institute of Technology, told CNBC. “These products are now seen as one of the key growth drivers for cosmetic brands, and this growth looks set to continue.”

The competition is becoming just as fierce Olive Youngdubbed the “Sephora of Seoul,” is preparing to open its first U.S. store in Los Angeles next year. Asian beauty store Sukoshi is also expanding, planning 20 new stores in the coming year in cities such as Seattle, Miami and Austin, Texas.

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

The boom comes amid the ongoing trade war.

This spring, American shoppers rushed to the store build up a stock on K-beauty favorites, bracing for price increases from tariffs, Dang said. However, prices ultimately remained relatively stable as Korean brands temporarily absorbed the duties, Dang said, although many are now exploring alternative production or shipping methods.

South Korea struck a deal with President Donald Trump last month that set a 15% tariff instead of the initial 25% levy the president announced in April.

“The system of easy trade is not what it was before the tariffs,” Dang told CNBC. “That said, many companies have been working with advertisers and internally to do their best to offset these costs and prevent them from being passed on to U.S. customers.”

Over the past decade, there has also been an increase in Korean entertainment in the US, including pop groups such as BTS and Blackpink until 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-beauties “first wavewhich emerged in the US in the mid-2010s, was defined by “glass skin,” 10-step routines, snail slime, pads and beauty spot creams. Most products were intended for lighter skin tones, and distribution was limited to small boutiques, Amazon retailers and early test placements at Ulta and Sephora, beauty experts said.

“The first wave had some penetration, but nothing like today,” Horvath said. “It was mainly people who knew about it.”

The second wave has been bigger, faster and much more inclusive. It includes color cosmetics, hair and scalp care, body care, fragrances and high-tech appliances.

TikTok is the central discovery engine, especially for Gen Z and millennial shoppers, who make up about three-quarters of K-beauty consumers, according to a market analyst report from Personal Care Insights. Posts tagged “K-beauty” or “Korean skin care” are viewed 250 million times a week, according to consumer data company Current. And viral products with sleek packaging often disappear from shelves faster than retailers can restock — especially products that combine gentle formulas and low prices, Dang said.

“TikTok has changed the game,” Horvath said. “It’s easier to educate consumers about innovation and get the word out. Brands are investing deeply in paying influencers, and TikTokers are talking about textures, formulas and efficacy.”

Virality has also pushed brands to be more inclusive to younger and more diverse shoppers. After TikTok creators criticized The Korean brand Tirtir only offers three foundation shades to the company extensive up to 40 shades within months and many other companies followed suit.

The trend is visible across America, with 61% of consumers in Mexico and nearly half in Brazil saying K-beauty is popular in their country, compared to about 45% in the US, according to Statista.

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

But the second wave brings its own risks. A heavy reliance on virality could expose brands to sudden algorithm changes or regulatory scrutiny, D’Ambrosia said.

“When you concentrate so much growth on one platform [such as TikTok]Algorithmic changes can have a significant impact on discoverability overnight,” said D’Ambrosia. “We’ve seen what happens when platforms change their recommendation engines. … There are definitely some warning flags that we’re keeping an eye on.”

K-beauty’s staying power is rooted in an intensely competitive domestic Korean market, according to Dang. Trends are following each other at breakneck speed and consumers are spending more on beauty per capita than in any other country, according to the South Korean research firm DOG.

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 we test the results with clinical individual tests. … Anything that is very unique and works very well for skin care, we develop.”

Korean consumers move quickly through trends, fueling a pipeline of upstart brands that can go viral and in some cases be acquired. For example, when sticky snail mucin, a gel used to protect and repair people’s skin, took off worldwide, skincare brand Amorepacific said bought COSRXthe small Korean brand that helped popularize the ingredient, for about $700 million.

Analysts predict that the next wave of products will likely be even more experimental.

Brands are betting on buzzy ingredients like DNA extracted from salmon or trout sperm that early research shows can help soothe or repair skin. They are also expanding into biotechnology.

“K-beauty is very data-driven. [Artificial intelligence] helps us achieve rapid results in content, format development and advertising,” Kim said. “In Korea they started talking about delivery systems. They are very good with biotechnology.”