How to make investments in the rapidly growing K-beauty industry

How can you profit from the growing demand for Korean culture products and the booming distribution of K-beauty, K-pop, K-food, K-fashion, ?

The UK market is expected to reach 14 billion by 2033, making Korean beauty brands a lucrative opportunity for investors.

According to Grand View Horizon, a research firm, the market brought in £9.2 billion (7 billion) in revenue in 2025, with skin and haircare products being among the top categories. From 2026 to 2033, the market is predicted to grow at a compound annual growth rate of 9.7 percent, reaching a value of over £19 billion (roughly 14 billion).

These products promise glass-like skin, youth, and hydration unlike anything else because they contain ingredients like PDRN (salmon sperm), snail mucin (the silver slime), and mugwort (an Asian weed).

These products are now available in practically every store on the planet and are widely shared on social media, a phenomenon known as the "Korean Wave" or "Hallyu," which refers to the spread of Korean culture to other cultures.

But it's not limited to beauty; it also includes K-pop, K-food, K-fashion, and K-movies. In 2012, during the early stages of the Korean Wave, PSY's popular song Gangnam Style may come to mind.

These days, K-beauty can be found strewn throughout high-street beauty shops like Boots, Sephora, and Space NK, and Korean marts like Oseyo are appearing in well-known areas of London.

With the help of innovation, pricing, and cultural export, K-beauty is evolving from a niche category into a scalable growth segment. The US is currently the largest demand center and the UK is still in the early stages of adoption, according to Lale Akoner, global market analyst at eToro. The segment is expanding at a compound annual growth rate of about 10% worldwide.

"As distribution grows across Boots, Superdrug, and online channels, forecasts indicate that K-beauty may gain a significant portion of the UK market over the next ten years. The "

Although K-beauty users say it works wonders for their skin and hair, is it possible that it will do the same for their portfolio? After all, lipstick stocks are always in style, and Korean skincare is a trend that is unlikely to fade. Even though they aren't among the best stocks and funds for do-it-yourself investors, this might change in the coming months.

Here's how to learn more about the Korean Wave and this burgeoning Korean skincare market.

In a shopping cart are cosmetic bottles with blank labels.

How to make K-beauty investments.

Although there is little direct exposure for investors in the UK, there are some options that are easily accessible. There are two stocks to think about that are both accessible through foreign brokers and listed on the Korea Exchange.

The South Korean company Amorepacific (KRX:090430) is responsible for some of the most well-known Korean beauty brands, including Laneige and Innisfree, which can be found in the leading UK retailers. LG H&H (KRX:051900) is a subsidiary of the LG Group that specializes in cosmetics and household products like Dr. Belmeur and Euthmyol. It was formerly known as LG Household & Health Care. Given that China is South Korea's biggest trading partner, these businesses do, however, have greater volatility and sensitivity to China.

And earlier this month, the fallout from the Middle East conflict forced the Korean stock market to implement a stock market circuit breaker, a temporary halt to trading, demonstrating just how volatile the Korean stock market can be.

Korean skincare is brought in by LOral.

You can also be introduced to K-beauty through some more conventional methods.

Global beauty majors like LOral (PA:OR) and Este Lauder (NYSE:EL), which profit from K-beauty trends through distribution and acquisitions, offer a more reliable path. As K-beauty increases customer traffic and basket size, retail platforms (like Sephora) also benefit, according to Akoner.

After purchasing Gowoonsesang Cosmetics, along with its subsidiary Dr.G, from Swiss retail group Migros in December 2024, LOral entered the Korean skincare market.

The Dr. Founded in 2003 by dermatologist Dr. Gun Young Ahn, G is a Korean skincare company with its headquarters located in Seoul. According to LOral, the company is "positioned to meet the rising demand for K-beauty."

After acquiring Carver Korea in 2017, LSE-listed Unilever (LSE:ULVR) expanded into K-Beauty as well.

ETFs for South Korean brands, including K-beauty.

As previously stated, Hallyu isn't limited to Korean skincare, and investing in an actively-managed fund or exchange-traded fund (ETF) could provide broader exposure to South Korean brands. You should think about these Korea ETFs that are listed on the LSE.

The HSBC MSCI Korea UCITS ETF (LON:HKOR) follows the MSCI Korea Index. Large and mid-cap Korean stocks make up the FTSE Korea 30/18 Capped Index, which is tracked by the Franklin FTSE Korea UCITS ETF (LON:FLRK). An actively managed fund that invests in Korean stocks is called Barings Korea Trust. It is evident that the beauty industry is a desirable offering with consistent demand as consumers seek out high-end skincare products, bolstered by an aging population.

This global expansion is centered on K-beauty, but the beauty industry as a whole is something to watch.