Customers through the grand opening of an Olive Younger retailer in Pasadena, California, Might 29, 2026.
Kyle Grillot | Bloomberg | Getty Photos
When Olive Younger opened its first U.S. outpost in late Might, consumers have been already tenting out, and the road spanned a number of blocks.
On opening weekend, the main South Korean magnificence retailer’s new retailer in Pasadena, California, had 6,000 clients transfer by means of its doorways, and it at present sees a median of greater than 1,600 guests per day, the corporate mentioned. It has since opened one other location, in Century Metropolis, California, and mentioned it plans to open extra shops within the U.S.
Customers wait in line to enter the primary U.S. location of Korean magnificence retailer Olive Younger through the retailer’s grand opening, in Pasadena, California, Might 29, 2026.
Kyle Grillot | Bloomberg | Getty Photos
That reputation is a microcosm of an even bigger pattern enjoying out within the U.S.: Customers cannot get sufficient of magnificence merchandise from a rustic hundreds of miles away — positioning some corporations to get forward.
“The U.S. just isn’t solely the world’s largest magnificence market, but additionally one of the influential in shaping international magnificence traits, content material, and shopper conduct,” Olive Younger international communications lead Rena Kim mentioned. “It was a pure and strategic subsequent step in our international growth.”
Glowing up
Consumption of Korean cosmetics, in any other case known as Ok-beauty, has been on the rise within the U.S. for years, with the “first wave” going down within the 2010s and persevering with into the Covid-19 pandemic.
“Folks have been house. That they had time to type of find out about a 10-step skincare routine. They discovered about what particular components did, the way to layer merchandise collectively,” mentioned Anna Mayo, a NielsenIQ magnificence thought chief. “We noticed the rise of this ‘glass pores and skin’ look, and this actual emphasis on wholesome and glowing pores and skin that appears nice day by day versus the necessity to type of cowl it up with cosmetics.”
“Customers have already been primed on this pores and skin care-first philosophy that they are type of residing in,” she added.
Now, the “second wave” has taken maintain, Mayo mentioned, as Ok-beauty manufacturers efficiently reap the benefits of this urge for food amongst U.S. shoppers for skincare. In response to NielsenIQ, U.S. Ok-beauty gross sales reached $2.8 billion in early 2026, representing a roughly 48% improve from a yr in the past. That is sooner than the almost 45% development charge seen within the prior-year interval — an uncommon acceleration, Mayo mentioned.
Ok-beauty can be penetrating extra U.S. households, climbing to twenty-eight.7% over the most recent yearly interval — an indication that it is changing into stickier within the nation.
Morgan Stanley analyst Simeon Gutman mentioned he expects Ok-beauty’s development trajectory to proceed. In a be aware dated March 11, the analyst forecast that Ok-beauty gross sales within the U.S. can attain roughly $4 billion in 2026, citing “the rising reputation of Ok-culture and U.S. shopper demand for purposeful skincare merchandise” as catalysts.
Gutman later confirmed to CNBC that these views are present.
Even when these projections do not come to fruition, Ok-beauty reputation may have a long-lasting impression on the U.S. shopper. Cassandra Bankson, a medical aesthetician and skincare educator, believes such reputation has paved the way in which for cosmetics merchandise from different nations to observe swimsuit, even within the U.S., as long as info and commerce channels are open.
“I feel it is coming, and I feel individuals do not see it coming,” Bankson mentioned, including that she thinks merchandise from China and Japan can be subsequent, then from Vietnam, Singapore and Thailand.
“The U.S. now has these underground teams in a variety of the sweetness teams that I am in, saying, ‘You guys, take a look at what I acquired from Judydoll,’ or ‘I simply went to China, I simply went to Vietnam, take a look at this Thai sunscreen that I acquired that we won’t get wherever else,'” she mentioned. “I feel that there is much more room for that.”
The American mall has began to be reshaped because of this. At Westfield Backyard State Plaza in New Jersey, the lineup of Asian retailers has expanded over the previous 12 months, seeing new additions comparable to Sukoshi — a prime vacation spot for Ok-beauty in addition to Japanese magnificence, or J-beauty, and Asian way of life merchandise.
“Shopper discovery has basically modified,” mentioned Kate Sabbag, vice chairman of leasing at Westfield Backyard State Plaza. “Folks aren’t simply discovering manufacturers in malls anymore — they’re discovering them on TikTok, Instagram and thru worldwide journey. And as soon as they join with a model, they need to expertise it in actual life. We’re seeing that play out throughout our portfolio.”
Who may benefit?
Whereas an enormous chunk of Ok-beauty gross sales comes from platforms comparable to TikTok Store and Amazon, in response to NielsenIQ information, there’s room for retail to take up extra market share.
“There’s a big alternative to type of transfer this phase offline and into shops and attain those who approach,” NielsenIQ’s Mayo mentioned in an interview.
Earlier this yr, Sephora partnered with Olive Younger to deliver Ok-beauty merchandise to Sephora clients in shops in addition to on-line, and Morgan Stanley’s Gutman mentioned Ulta Magnificence can be set as much as profit from rising Ok-beauty reputation within the U.S.
In its newest earnings report, Ulta CFO Christopher DelOrefice mentioned “the skincare and wellness class delivered low-single-digit comp development this quarter,” with status skincare, together with Korean model Medicube, persevering with to “carry out effectively.” He mentioned Ok-beauty model Peach & Lily was amongst these driving “wholesome visitor engagement,” whereas mass skincare’s “stable” development within the interval was supported by the in-store growth of Anua.
“I’d count on them to proceed to lean into this pattern inside the market,” mentioned Anna Glaessgen, a analysis analyst at B. Riley Securities specializing in shopper merchandise. “Clearly with the actually profitable launch of the Olive Younger retailer, there is a ton of demand for Ok-beauty, and so they should be there the place the buyer is.”
Ulta didn’t reply to CNBC’s request for remark. The corporate’s Q2 figures might give traders extra readability on this. The report is scheduled to be launched Aug. 5.
Nonetheless, Glaessgen highlighted that Ok-beauty’s reputation poses a threat: Total common promoting worth within the class could possibly be affected provided that Ok-beauty sometimes carries a cheaper price level than status skincare.
“If individuals who usually would have been a status skincare shopper spending $30 to $60 on one thing at the moment are spending within the teenagers to within the 20s, clearly that carries downward strain to the common spend within the class,” she mentioned.
She sees that threat coming extra from the youthful generations who’re simply now getting into status skincare. “If they’re discovering efficacy in a $20 or $30 product, it is perhaps tougher to get them to commerce as much as one thing operating within the a whole bunch,” the analyst mentioned.
Different retailers comparable to Goal, Costco and Walmart additional growing their Ok-beauty market penetration is also a approach to assist entice a broader viewers to the class.
Goal has already made important strides in that space. The retailer quadrupled its Ok-beauty objects within the spring, providing greater than 150 new merchandise and greater than 10 new manufacturers throughout skincare, make-up and hair care, a spokesperson informed CNBC. The corporate plans to introduce extra merchandise.
“Magnificence is an extremely vital and deeply private class for our visitors, and our staff is all the time seeking to flex our merchandising authority by bringing them the manufacturers and traits they need most,” Amanda Nusz, senior vice chairman of merchandising, necessities and sweetness at Goal, informed CNBC. “Ok-beauty is a superb instance.”
Raymond James analyst Olivia Tong underscored that merchandise from manufacturers comparable to The Abnormal, which relies in Canada and owned by Estee Lauder, have integrated components which have change into popularized by these within the Ok-beauty area, comparable to centella asiatica.
“It is a very completely different approach of wanting on the class — extra about upkeep, very ingredient heavy, and there is clearly a sure velocity to market that they are bringing too,” she mentioned to CNBC. “We do not suppose that is only a pattern per se. We predict that this can be a little bit of a shift out there.”
