K-beauty brands that have gained a presence in the U.S. market through the e-commerce platform Amazon are increasingly opening physical stores. Walmart, Target, Costco, Sephora, and Ulta Beauty, a cosmetics retailer referred to as the 'American version of Olive Young,' are also strengthening their offerings of Korean products. This is seen as a response to the increasing demand for K-beauty in the U.S.
According to industry sources on the 22nd, Ulta recently unveiled 13 new K-beauty brands in its online and offline stores. Basic cosmetics brands such as VT Cosmetics, Medi Cube, Chasing Rabbit, I'm From, Mix Soon, Neo Gen, Some By Mi, and Ingredient Editor, as well as color cosmetics brands like Tirtir, Pyu, Kaja, Unleashia, and Rom&nd, are being sold.
To this end, Ulta has collaborated with companies like Landing International, which operates the Korean cosmetics platform 'K-Beauty World.' Caitlin Reinhardt, Ulta's vice president of merchandise, noted in a statement, "This exclusive partnership allows beauty enthusiasts nationwide to easily experience K-beauty," adding, "We have introduced K-beauty brands in the skincare category, but now we can meet brands across more diverse categories and price ranges."
Founded in 1990, Ulta is a cosmetics retailer with over 1,400 stores across the United States. Unlike Sephora, a beauty retailer operated by LVMH that focuses on luxury brands, Ulta offers a variety ranging from mid-range to high-end brands, which is why it is also called the 'American version of Olive Young.' Last year, its revenue was $11.3 billion (about 16.25 trillion won), selling approximately 30,000 products from over 600 brands.
The membership has about 45 million members. Nearly half of the female purchasers belong to Generation Z (born from 1995 to the early 2010s). In the second quarter of last year, Berkshire Hathaway, led by "the Oracle of Omaha" Warren Buffett, sold about half of its Apple shares and purchased 690,106 shares of Ulta for approximately $266 million (worth about 37 billion won at the time).
However, evaluations indicate that the growth rate has slowed recently due to intensifying competition among beauty products among U.S. retailers. Therefore, Ulta seems to be seeking to establish growth momentum by expanding its K-beauty product lineup.
According to the U.S. International Trade Commission (USITC), last year, Korea's export of cosmetics to the U.S. reached $1.71 billion (approximately 2.5 trillion won), surpassing France to take first place. From January to June this year, the export of cosmetics to the U.S. increased by about 18% compared to the previous year.
As K-beauty gains recognition for its marketability through platforms like TikTok and YouTube, U.S. offline retailers are increasingly bringing in Korean cosmetics. Target, a major discount retailer, plans to expand its dedicated K-beauty section, currently operating in about 1,600 stores, to all its stores (1,978 stores) by the end of the year. Sephora, a beauty specialty store, has also doubled its K-beauty portfolio this year. Walmart and Costco are also selling Korean cosmetics at their beauty counters.
The United States has announced plans to raise the reciprocal tariff on Korea to 25% starting next month. However, the cosmetics industry seems optimistic about the demand increase. Cosmetic manufacturers Kolmar Korea and COSMAX have expanded local production in the U.S., and Amorepacific Corporation is also considering establishing a production facility in the United States.
CJ Olive Young established a U.S. branch at the beginning of this year and is pushing to open its first store in Los Angeles. An industry insider stated, "There are concerns that tariffs may lead to price increases or decreased revenue, but we hope it won't have a significant impact on local cosmetic demand."