The South Korean cosmetics and beauty industry has identified Southeast Asia as its next major export frontier, following in the footsteps of established markets like the United States, China, and Japan. This strategic shift is driven by the rapid growth of the Southeast Asian market, fueled by the widespread popularity of Korean culture (Hallyu) and the expansion of robust online distribution networks. From manufacturing giants to boutique brands, companies are intensifying their efforts to capture local consumer demand.
According to data released by market research firm Global Market Insights (GMI) on June 22, the Southeast Asian K-beauty market is projected to grow from $4.4 billion last year to $11.1 billion by 2035, maintaining a steady compound annual growth rate (CAGR) of 9.6%.
By product category, the skincare segment emerged as the leader, accounting for approximately $1.4 billion in revenue in 2025. It also demonstrated the strongest growth momentum, with a CAGR of 9.9%. On a country-by-country basis, Thailand stood out as the largest market, valued at $1.1 billion in 2025, while Vietnam was identified as the market with the highest growth potential.
In terms of market share, Amorepacific holds the leading position with approximately 14%. The top five companies, including LG Household & Health Care, COSRX, Dr.Jart+, and Missha, collectively control about 43% of the market.
The growing significance of Southeast Asia is also evident in Korea’s overall cosmetics export performance. In the first quarter of this year, Vietnam and Thailand ranked 5th and 10th, respectively, as top export destinations for Korean cosmetics. Notably, exports to Vietnam rose by 2.3% from $124 million in the first quarter of last year to $127 million this year. Similarly, exports to Thailand saw a significant 10.3% increase, rising from $58 million to $64 million during the same period.
Major Korean companies are deploying diverse strategies to penetrate these local markets. Cosmax, a global leader in cosmetics manufacturing, is expanding its original design manufacturing (ODM) operations in Thailand. The revenue of Cosmax’s Thai subsidiary climbed from 19.9 billion KRW in 2021 to 73.1 billion KRW last year, with a target of hitting 100 billion KRW this year. The company is actively collaborating with local brands through a "full-service" strategy that encompasses everything from product formulation and brand planning to packaging design and retail distribution.
Meanwhile, LG Household & Health Care is aggressively targeting the Vietnamese market with its derma-cosmetic brand, 'CNP.' By recently inviting popular local influencer Thuan Pham to host a brand event, the company saw CNP's sales in Vietnam soar by 161% in the first quarter of this year compared to the same period last year.
The pharmaceutical sector is also making significant strides into the Southeast Asian beauty market. Yuhan Corporation is expanding its local marketing efforts through its beauty brand 'Dinsy,' while Dongkook Pharmaceutical is strengthening its distribution channels by entering major online and offline retail outlets in Thailand.
Industry insiders note that companies that have previously focused on expanding exports to the US and China are now gearing up to capture emerging markets in Europe, South America, and Southeast Asia. "Southeast Asia, in particular, offers immense growth potential due to its high affinity for Korean culture and a large, youthful population that is eager to adopt new beauty trends," an industry representative said. As K-beauty continues to evolve, Southeast Asia is poised to become a critical pillar of South Korea’s global beauty footprint.
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