South Korea overtakes France as top beauty exporter to US

THE WHAT? The US can’t get enough of K-beauty. Indeed, Korean cosmetics have become so popular that the country has overtaken France as the top exporter of beauty products to America. Shipments hit a record US$10.2 billion in 2024, up from 2020’s US$7.5 billion.

THE DETAILS Indeed, according to a report published by Reuters, this interest has spurred on M&A with L’Oreal clocking up a record 18 deals worth KRW2.3 trillion in 2024. Further activity it expected this year too; with rumors swirling around a potential sale of Classys Inc.

THE WHY? Reuters explains that the K-culture wave has spurred interest in all things Korean from food to beauty products, a trend that is widely expected to continue. Equally, K-beauty firms have invested in the US market in an attempt to diversify following the slump in China.
Manhwi Han, Deal Partner at MMP, told Reuters, “Private equity funds are paying more attention to Korean cosmetics. Given the strong growth of exports in the US, we expect the M&A boom will definitely continue this year.”

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