
K-beauty powerhouse Olive Young announced Tuesday that it has established its US subsidiary, CJ Olive Young USA, in Los Angeles, California, as part of its ongoing expansion into the American market. The company also plans to open its first brick-and-mortar store in the region, though the exact opening date has yet to be disclosed.
According to global market research firm Euromonitor, the global beauty market was valued at $570 billion in 2023, with the US accounting for the largest share as a single country at an estimated $120 billion. This figure is more than 10 times the total overseas exports of Korean beauty products, which reached some $10.2 billion last year.
Data from the Ministry of Food and Drug Safety shows that K-beauty exports to the US grew at an average annual rate of over 20 percent between 2020 and 2023. With around 40 percent of the US population falling within the trend-sensitive 10-to-30 age demographic, Olive Young expects that greater accessibility to K-beauty products among younger consumers will accelerate market growth.
With the launch of its US subsidiary, the company is actively localizing key business functions such as product sourcing, marketing and logistics to enhance its global e-commerce operations.
"For now, global shipping is handled through our Anseong Center, which also manages our private-label brands," an Olive Young official said. "However, we are looking to establish a logistics center in the US in the future to strengthen our market presence and improve convenience for consumers with a more stable supply chain. As we build such a direct shipping system, we plan to collaborate with CJ Logistics in the US."
Olive Young Global Mall, the retailer's online platform, operates in 150 countries worldwide. North America, in particular, has shown strong demand, contributing significantly to the platform’s total revenue, thanks to its younger, e-commerce-savvy customer base.
To further localize its platform, Olive Young aims to refine the user experience, payment options and product information display for US consumers. The company also plans to leverage local data and consumer insights to enhance product curation and strengthen marketing efforts.
"The establishment of our US subsidiary marks a key milestone in our efforts to explore new growth opportunities in the global market alongside our partner brands, while also fostering a sustainable environment for K-beauty's continued expansion," Olive Young CEO Lee Sun-jung said. "We are committed to serving as a 'K-beauty growth booster' in international markets for the industry's long-term success."