How to invest in the exploding K-beauty economic powerhouse

Korean beauty brands are all the rage right now and for investors it could be a glowing opportunity with the UK market projected to reach £14 billion by 2033.

Research firm Grand View Horizon says the market generated $9.2 billion (£7 billion) revenue in 2025, with skin and haircare products among the leading categories. It estimates a compound annual growth rate of 9.7% from 2026 to 2033, by which time the market is expected to be worth over $19 billion (approximately £14 billion).

With ingredients like PDRN (salmon sperm), snail mucin (the silver slime) and mugwort (an Asian weed), these products come with promises of glass-like skin, youth and hydration like no other.

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And it’s taken off, with these products now in almost every store across the globe and flooding social media – a phenomenon known as ‘Hallyu’ or ‘Korean Wave’, referring to the Korean culture spreading to other cultures.

But it isn’t just confined to beauty, it’s K-pop, K-food, K-fashion and K-movies, too. You may remember the widespread song ‘Gangnam Style’ by PSY in 2012, the early days of the Korean Wave.

Now, you see Korean marts like Oseyo popping up in popular locations around London and K-beauty scattered across high street beauty stores such as Boots, Sephora and Space NK.

“K-beauty is transitioning from a niche category into a scalable growth segment, supported by innovation, pricing, and cultural export. Globally, the segment is growing at around 10% compound annual growth rate, with the US now the largest demand centre and the UK still in early adoption,” Lale Akoner, global market analyst at eToro, said.

“Forecasts suggest K-beauty could capture a meaningful share of the UK market over the next decade as distribution expands across Boots, Superdrug, and online channels.”

While K-beauty users claim it does wonders to your skin and hair, could it do the same for your portfolio? Quite possibly – after all, lipstick stocks never quite go out of fashion and Korean skincare is a trend that is unlikely to go away. And while they do not form part of the top stocks and funds for DIY investors, this could change in months to come.

Here’s how you can get exposure to this explosive Korean skincare industry and the Korean Wave.

(Image credit: Getty Images)

How to invest in K-beauty

Direct exposure for UK investors is limited, but there are some accessible options. Two stocks to consider, both listed on Korea Exchange and available via international brokers, are:

Amorepacific (KRX:090430) – the South Korean company is behind some of the biggest Korean beauty brands like Laneige and Innisfree, seen in the UK’s top retailers.LG H&H (KRX:051900) – Previously called LG Household & Health Care, the company, a subsidiary of the LG Group, specialises in cosmetics and household products such as Dr Belmeur and Euthmyol.

However, these companies do come with higher volatility and China sensitivity, with China being South Korea’s largest trading partner.

And we have already seen how volatile the Korean stock market can be when earlier this month, the fallout from the Middle East conflict forced the Korean stock market to implement a stock market circuit breaker, a temporary pause on trading.

L’Oréal brings in Korean skincare

Some more traditional routes can also provide you with exposure to K-beauty.

“A more stable route is through global beauty majors like L’Oréal (PA:OR) or Estée Lauder (NYSE:EL), which benefit from K-beauty trends via distribution and acquisitions. Retail platforms (such as Sephora) also capture upside as K-beauty drives customer traffic and basket size,” said Akoner.

L’Oréal entered the Korean skincare market following its acquisition of Gowoonsesang Cosmetics, including subsidiary Dr.G, from Swiss retail group Migros in December 2024.

Dr.G is a Korean skincare brand founded by dermatologist Dr Gun Young Ahn in 2003, headquartered in Seoul. L’Oréal said the brand is “positioned to meet the rising demand for K-beauty”.

LSE listed Unilever (LSE:ULVR) too has grown into K-Beauty with its acquisition of Carver Korea in 2017.

ETFs for K-beauty and other South Korean brands

As mentioned previously, Hallyu isn’t just confined to Korean skincare and buying into an exchange-traded fund (ETF) or an actively-managed fund could give wider exposure to South Korean brands. These LSE listed Korea ETFs are worth considering:

HSBC MSCI Korea UCITS ETF (LON:HKOR): Tracks the MSCI Korea Index.Franklin FTSE Korea UCITS ETF (LON:FLRK): Tracks the FTSE Korea 30/18 Capped Index, consisting of large and mid-cap Korean stocks.Barings Korea Trust: actively-managed fund investing in Korean stocks.

What’s clear is that the beauty industry is an attractive proposition with a steady demand as consumers seek out premium skincare, supported by an ageing population.

K-beauty is in the centre of this global growth, but the beauty sector as a whole is one to keep an eye on.