K-beauty exports topped $11.4 billion last year

Exports up 31% through August this year

Over 70% of Japanese consumers check ingredients before buying

63 firms target retail and aesthetics buyers in Osaka

The K-beauty pavilion, jointly operated by KOTRA and Global FM, at Cosme Week Osaka 2026, held at Intex Osaka on Wednesday. [KOTRA]
The K-beauty pavilion, jointly operated by KOTRA and Global FM, at Cosme Week Osaka 2026, held at Intex Osaka on Wednesday. [KOTRA]

K-beauty, which has topped Japan's imported cosmetics market for four consecutive years, is now setting its sights beyond value-for-money and trend appeal — moving into the premium segment by leading with ingredients and functional efficacy. As Japanese consumers increasingly scrutinize what goes into a product rather than which brand makes it, South Korean cosmetics companies are expanding their reach through functional formulations and specialized distribution channels.

The Korea Trade-Investment Promotion Agency (KOTRA) announced Thursday that it is operating a Korean pavilion at Cosme Week Osaka 2026, a dedicated cosmetics trade fair running for three days from Wednesday in Osaka, Japan.

Nine South Korean cosmetics companies are participating in the Korean pavilion, while 54 more are showcasing products in a separate K-beauty showcase. All 63 firms are using the event to explore market entry opportunities, targeting Japanese retailers as well as buyers from dermatology clinics and aesthetics businesses.

K-beauty's export growth has been steep. South Korea's cosmetics exports surpassed $10 billion for the first time last year, reaching $11.4 billion. The momentum has continued this year, with exports hitting $9.6 billion through August — up 31 percent from the same period last year. South Korean cosmetics now hold the top share of the imported cosmetics market in Japan, the United States and Russia, among others.

In Japan in particular, South Korean cosmetics have led the imported cosmetics market for four consecutive years from 2022 through last year. Consumer behavior in the country is also shifting.

A telling example is the trend known as "seibun-kai" — a purchasing pattern in which consumers research exactly which ingredients a product contains and what effects they can realistically expect, rather than simply reaching for a well-known brand.

A survey by Japanese e-commerce platform Qoo10 of 500 women aged 15 to 44 found that more than 70 percent check a product's ingredients or materials before buying. Searches for functional ingredients commonly found in South Korean cosmetics — including CICA, PDRN and niacinamide — are also on the rise.

Regulatory shifts in Japan add another variable. The Japanese government, through a public-private partnership body called the J-Beauty Industry Study Group launched in June last year, is reviewing plans to ease restrictions on cosmetics advertising claims and shorten the review period for quasi-drug approvals.

Until now, Japanese regulations have placed significant limits on how ordinary cosmetics can advertise functional benefits such as skin brightening or wrinkle reduction. KOTRA said that if those restrictions are eased, South Korean functional cosmetics — which already compete on ingredient quality and efficacy — could find new room to expand into the premium segment.

Competition, however, is intensifying. Rivals from China and other countries are applying similar functional ingredients and tapping South Korean original design manufacturing and original equipment manufacturing firms, narrowing the product gap. There are also concerns that if K-beauty remains associated in the Japanese market primarily with fast trends and strong price-to-performance ratios, long-term differentiation will be difficult to sustain.

Products reflecting these shifts will take center stage at the Osaka fair. South Korean companies are presenting "doctor cosmetics" — formulations incorporating dermatological ingredients such as PDRN, AHA and BHA — alongside clean beauty products that emphasize low-irritant and vegan ingredients.

The firms are also targeting "pakke-gai," a purchasing behavior popular among younger Japanese consumers in which buyers are drawn to a product by its packaging design or visual presentation. South Korean companies are bringing design-forward beauty products aimed at this segment.

Western Japan, including Osaka where the fair is held, is home to a concentration of major pharmaceutical companies and cosmetics ingredient suppliers. The event draws not only large retailers but also specialized distributors that supply dermatology clinics and aesthetics businesses, as well as buyers seeking products for professional treatments.

KOTRA plans to display products from all 54 showcase companies together so local buyers can assess textures and feel firsthand. After the fair, the agency will connect interested buyers with South Korean companies for one-on-one online export consultations and sample testing.

"K-beauty has secured the top position in Japan's imported cosmetics market, and there remains significant room to expand further into the premium segment — where ingredients and functionality matter most — as well as into specialized channels such as aesthetics clinics and dermatology practices," said Park Yong-min, head of KOTRA's Japan regional office. "We will continue supporting K-beauty companies in entering Japan's high-value market by leveraging the demand we identify at this Cosme Week."


kwater@heraldcorp.com