The boom of Korean sunscreens in the US, once led by brands like Joseon Beauty, is facing a slowdown due to stricter US regulatory standards.
E-commerce platforms like Amazon, popular among Korean indie beauty brands for US distribution, are increasingly scrutinizing Korean sunscreens to ensure compliance with US Food and Drug Administration (FDA) Over-the-Counter (OTC) regulations. These regulations, which apply to products that are not prescription drugs but have drug-like effects, require specific ingredients and testing for sunscreens.
The US has stricter regulations compared to South Korea, where a wider range of ingredients can be used in sunscreen formulations. This has allowed Korean brands to create lighter and more hydrating sunscreens. However, while these products have thrived on platforms like Amazon, which have historically had less stringent oversight, the landscape is changing.
The recent Modernization of Cosmetics Act of 2024 has prompted Amazon to more closely examine the OTC compliance of Korean sunscreens. Some Korean brands have reportedly been delisted from Amazon.
In response, brands like Joseon Beauty are collaborating with major Korean cosmetics manufacturers like Kolmar to develop new sunscreen formulations that meet US OTC standards while maintaining a hydrating texture. However, the success of these new products in the US market remains uncertain.
Some companies are even considering shifting production to US-based manufacturing facilities to navigate both regulatory hurdles and potential trade barriers. A representative from a Korean indie beauty brand noted, "Beyond FDA regulations and the Modernization Act, with the potential for increased tariffs under a Trump 2.0 administration, local production seems like a better option."
[Copyright (c) Global Economic Times. All Rights Reserved.]
