Global K-Beauty Demand Soars: An Opportunity for ODM Companies Amidst Exchange Rate Volatility
[KEY_TAKEAWAY]
The global K-Beauty market continues its explosive growth, but a weakening yen and strengthening Korean won are emerging as key variables in export strategies. It's crucial to increase reliance on the North American market and strengthen partnerships with ODM (Original Design Manufacturer) companies.
[WHAT_HAPPENED]
The global K-Beauty market size reached $15 billion (approximately 20.6 trillion KRW) in 2025, marking a 22% growth year-over-year (Euromonitor). At that time, the U.S. market spearheaded this growth, accounting for 54% of overseas online sales. Meanwhile, in early August, the Japanese yen-U.S. dollar exchange rate hit 159.4 yen, nearing the 160 yen mark, and the yen's depreciation deepened again despite joint intervention by the U.S. and Japan (한국경제).
[WHY_IT_MATTERS]
- ODM Companies: As indie brands expand into North America, Japan, and Southeast Asia, product development and production orders for Korea's "Big 3" ODMs (Kolmar, Cosmax, and Cosmecca) have surged (Daum). The role of ODM companies with strong R&D and mass production capabilities is becoming even more critical.
- Export Brands: A stronger Korean won could lead to weaker price competitiveness for K-Beauty products. However, this may be offset by overwhelming market demand and increased sales through digital channels like TikTok.
[WHAT_TO_DO]
To leverage the high growth potential of the North American market, expand marketing investments in social commerce channels like TikTok. Additionally, focus on developing locally customized products and establishing fast supply chains in cooperation with your ODM partners.
Kagit編輯部
Kagit 編輯部，綜合韓流話題整理。
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