The South Korean cosmetics and beauty industry has officially identified Southeast Asia as its next major export frontier, following successes in the United States, China, and Japan. Driven by the widespread popularity of Korean culture (the "Hallyu" wave) and the rapid expansion of digital retail infrastructure, Korean firms ranging from major manufacturers to independent brands are aggressively targeting local consumer demand.
According to the market research firm Global Market Insights (GMI), the Southeast Asian K-beauty market is projected to surge from $4.4 billion last year to $11.1 billion by 2035, maintaining a compound annual growth rate (CAGR) of 9.6%.
By product category, skincare accounted for the largest share of the market, with sales reaching approximately $1.4 billion in 2025, also exhibiting the highest growth rate at 9.9% CAGR. Geographically, Thailand emerged as the largest market with an estimated value of $1.1 billion in 2025, while Vietnam was identified as the fastest-growing market in the region.
In terms of market share, Amorepacific holds the top position at approximately 14%. The top five companies, including LG Household & Health Care, COSRX, Dr. Jart+, and Missha, collectively control about 43% of the market.
Official export data confirms this trend. In the first quarter of this year, Vietnam and Thailand ranked 5th and 10th, respectively, among Korea’s top cosmetic export destinations. Vietnam’s imports of Korean cosmetics rose by 2.3% year-on-year, from $124 million to $127 million. Thailand saw an even sharper increase, with exports growing by 10.3% from $58 million to $64 million over the same period.
Major corporations are diversifying their localization strategies to capture this momentum. Cosmax, a leading global ODM (Original Development Manufacturing) firm, is rapidly expanding its operations in Thailand. The company’s Thai subsidiary saw its revenue jump from 19.9 billion KRW in 2021 to 73.1 billion KRW last year, with a target of 100 billion KRW for this year. Cosmax differentiates itself with a "full-service" strategy that supports local brands with everything from product development and packaging design to distribution channel entry.
LG Household & Health Care is focusing on Vietnam with its derma-cosmetic brand, 'CNP.' By collaborating with local influencer Tun Pham for brand events, the company saw its first-quarter revenue for CNP in Vietnam skyrocket by 161% compared to the same period last year.
The pharmaceutical industry is also making significant inroads into the Southeast Asian beauty market. Yuhan Corporation is expanding its marketing efforts for its beauty brand 'Dinsy' in Vietnam, while Dongkook Pharmaceutical is strengthening its local distribution network by securing shelf space in major online and offline retail channels across Thailand.
Industry insiders note that companies that previously focused their exports on the US and China are now gearing up for expansion into emerging markets like Europe, South America, and Southeast Asia. "Southeast Asia is particularly attractive because of its high affinity for Korean culture and a large youth demographic, which provides immense growth potential," said an industry source.
As K-beauty continues to evolve from a trend into a staple in Southeast Asian households, Korean companies are expected to further deepen their roots in the region, leveraging tailored strategies that blend superior product quality with localized digital marketing.
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