Ministry of Health forecasts $12.5 billion in cosmetics exports by '26 (+9.5%)... Holding corporate meeting to listen to difficulties
This year, 233.8 billion won invested in biohealth export activation... Announcing four-step support plan for overseas expansion of small and medium cosmetics enterprises
The total export target for the biohealth industry in 2026 is projected at $30.4 billion, a 9.1% increase from 2025. On the 3rd, the Ministry of Health announced specific support plans to promote exports of domestic biohealth companies and held a meeting to gather various opinions from the industry.
Current and Future Prospects of K-Beauty
Key Driver of Biohealth Industry Growth
In 2025, the biohealth industry recorded export achievements of $27.9 billion, ranking 8th among core domestic industries. Particularly, the cosmetics sector marked $11.4 billion in exports, solidifying its position as the top item within the biohealth industry. This reflects a 12.2% increase from the previous year, proving the global spread of K-Beauty's popularity helped by the excellent quality of Korean products and the Korean Wave. A noteworthy point is the diversification of exports to various markets such as Southeast Asia, the Middle East, and Europe, with the U.S. emerging as the largest export destination. The export share to regions outside the top five countries reached 43.4%, successfully reducing dependence on specific markets.
Cosmetics Export Target and Expectations for 2026
The export targets for the biohealth industry in 2026 are set as follows: $12.5 billion for cosmetics (+9.5%), $11.7 billion for pharmaceuticals (+12.4%), and $6.2 billion for medical devices (+2.7%). Cosmetics are expected to maintain steady growth, supported by K-Beauty's global recognition and improved online and offline accessibility. These positive forecasts stem from the solid competitiveness and constant innovation in Korea's cosmetics industry.
Government's Comprehensive Export Support Policy
The Ministry of Health plans to invest 233.8 billion won, a 3.5-fold increase from the previous year, to promote biohealth industry exports this year. The ministry actively supports the enactment of the Cosmetics Industry Promotion Support Act to foster the growth of the cosmetics industry, focusing on infrastructure building for global expansion, overcoming export regulatory barriers, market diversification, and step-by-step support for SMEs' overseas expansion.
Strengthening Global Infrastructure and Raw Material Supply Chain
Efforts are being made to provide information on the skin characteristics of locals in promising export countries, expanding support for customized product development by securing information on 500 Filipinos. Additionally, quality inspections of raw materials for 30 companies, efficacy-safety tests for 15 companies, and facilities-equipment support for 5 companies are conducted to promote raw material localization and supply chain stability. These supports contribute to the development of more stable and differentiated products by domestic cosmetics companies.
Regulatory Barrier Resolution and Market Diversification Strategy
Through the Cosmetics Raw Material Integrated Information System, safety data for frequently used domestic raw materials required for safety assessment reports by importing countries (additional 400 types annually) is provided, along with non-prescription drug (OTC) manufacturing registration consulting (25 companies) to enhance the export of U.S. functional cosmetics. Support is provided through the Cosmetics Industry Information Portal (Allcos) for consulting on global market trends and license-related issues (30 products), and videos explaining overseas licensing systems in 6 countries, including Canada, Australia, and Saudi Arabia, are also offered. Particularly, a cosmetic logistics hub is established in Los Angeles (LA) to support the expansion of exports to the U.S., offering storage, fulfillment, and delivery services to 300 companies in 8 U.S. regions.
Four-Step Overseas Expansion for SMEs
From Experience Promotion Hall to Global Flagship Hub
A four-step take-off strategy is implemented for the overseas expansion of small and medium cosmetics enterprises. In the first step, entry into the 'K-Beauty Play' experience promotion hall offers opportunities for foreign tourists and buyers to experience products. Additional halls will open in Busan (Seomyeon) in May, with renovations planned for Myeongdong and Hongdae halls in the second half of the year. The second step involves using pop-up stores set up in 10 countries where K-Beauty's influence is notable as a test stage for overseas expansion.
Testbed for Overseas Markets and Operation of Permanent Stores
The third step is permanent operation of flagship stores in 6 countries where market viability is proven through pop-up stores, enhancing local sales opportunities. This stage allows SMEs to secure stable overseas sales channels and increase brand recognition.
Global Flagship Hub and Customized Marketing
In the final fourth step, a new 'K-Beauty Flagship Hub' is launched in leading global trend cities, New York and Paris, elevating the status of K-Beauty. Support is also provided for creating customized marketing content utilizing distribution and global SNS platforms, helping SMEs effectively communicate with overseas consumers.
Lee Hyung-hoon, the Second Vice Minister of Health, emphasized:
"Based on the world's leading capacity for contract production and K-Beauty's sensational popularity, demand for Korean biopharmaceuticals, beauty medical devices, and cosmetics is surging."
"We will actively support the biohealth industry as it grows into a major export industry as the second key industry following semiconductors."
Through these remarks, a strong commitment to supporting the biohealth industry was expressed. The corporate meeting was held in City Tower 16th floor in Jung-gu, Seoul, attended by officials from the Ministry of Health and the Korea Health Industry Development Institute, as well as representatives from associations in the pharmaceutical, medical device, and cosmetics industries, and export companies such as Olive Young, Cosmax, Gudai Global, and Lilycover. The meeting served as a valuable opportunity to listen to export challenges and explore support options.
In Closing
The export outlook for 2026, including K-Beauty, in the biohealth industry is very bright. With the government's extensive support policies and companies' efforts synergizing, Korea's biohealth industry is expected to establish stronger leadership in the global market and secure new growth engines. This growth momentum is likely to inject positive vitality across related industries.
Strengthening the global competitiveness of the domestic cosmetics industry, spearheaded by K-Beauty, requires continuous innovation and effective marketing strategies. Yuricos offers practical support to help companies achieve successful outcomes in overseas markets through professional blog marketing.
