K-Beauty Surge: How Local Brands Are Overtaking Global Giants in 2026

As international beauty labels quietly pull out of South Korea, K-beauty is seizing the spotlight—and market share. Industry watchers say local brands’ improved competitiveness and shifting consumer tastes are steadily squeezing out foreign competitors.

On the 25th, sources in the industry confirmed that French skincare brand Caudalie shut its Korea operations in February, and Valentino Beauty has begun winding down its domestic business and clearing inventory.

Last year saw other global names exit as well: LVMH’s Fresh and L’Oréal’s Maybelline left the Korean market, and global beauty retailer Sephora wrapped up its Korean business in 2024. The departure of foreign players seems to be continuing.

Experts argue this isn’t just corporate trimming—it signals a structural shift in Korea’s cosmetics market. A mix of stronger K-beauty brands, price-centered shopping, and evolving consumer behavior is reshaping the landscape.

First, K-beauty is growing fast.

Across skincare and makeup, Korean brands now combine real performance with smart pricing. That combination has helped them expand rapidly and change the competitive dynamic with global players.

Price competition is heating up. Ultra-low-cost retailers like Daiso have massively expanded their beauty selections, denting demand for high-end department store lines and fueling value-driven shopping.

Changing consumer habits are also a factor.

Kyobo Securities’ report, K-Beauty Gold Rush, released on the 18th, found that tourists’ cosmetics purchases have shifted toward buying many items across many brands.

The share of foreign shoppers buying from 10 or more K-beauty brands rose from 10% in 2019 to 33% in 2025, and their numbers jumped from 77,000 to 1.46 million.

Shoppers are moving away from brand loyalty and toward trying a variety of labels—changing the way people consume beauty altogether.

This trend has boosted indie brands.

As more consumers prioritize product performance and price over big names, small and mid-sized brands are finding it easier to enter and compete in the market.

Analysts note that advances in ODM (original design and manufacturing) capabilities are helping indie brands scale faster.

At the same time, domestic companies are stepping up overseas, filling gaps left by departing foreign brands.

APR reported that about 80% of its fourth-quarter revenue last year came from overseas, signaling a growing global presence.

Gudai Global expanded by first winning customers abroad and then entering the domestic market, illustrating another successful growth path.

Industry observers now say the Korean cosmetics market is shifting from one led by global brands to one dominated by K-beauty.

Kim Ju-deok, a distinguished professor in the Beauty Industry Department at Seoul Cyber University, noted that before the 2010s foreign brands tended to lead the local market. Recently, though, K-beauty brands have surged ahead by offering strong product performance and competitive prices. Combined with changing consumer patterns, this has transformed the market’s very structure.