K-Beauty brands set sights on Mexico despite tariff headwinds

By the Editorial Team · Thursday, October 1, 2026

South Korean beauty companies are aggressively expanding their presence in Mexico’s growing cosmetics market, aiming for significant sales growth despite increased tariffs on imports. This push reflects Mexico’s rising importance as a strategic hub for Latin America, though industry leaders emphasize that overcoming trade barriers and securing government cooperation will be critical for sustained success.

South Korean beauty companies are intensifying their focus on Mexico as a key market in Latin America, leveraging the growing popularity of K-beauty products in North America despite challenges posed by increased tariffs. This strategic push was highlighted during the 2026 K-Expo Mexico, a trade event held in Mexico City from September 24 to 27, which was attended by South Korean President Lee Jae Myung.

At the event, Amorepacific’s CEO Kim Seung-hwan expressed ambitious goals for growth in Mexico, aiming to increase the company’s market presence more than tenfold within the next five years. Mexico, the second-largest beauty market in Latin America after Brazil, is expected to grow from approximately US$17.64 billion in 2026 to US$22.36 billion by 2031, according to Mordor Intelligence, a market research firm.

The expanding interest in K-beauty is reflected in trade data showing South Korean cosmetics exports to Latin America surpassed US$200 million for the first time in 2025 and reached US$168 million in the first half of 2026, as reported by the South Korea Customs Service. At the expo, LG Household & Health Care (LG H&H) attracted roughly 5,000 visitors daily with offerings including AI-powered skin diagnostic technology and hair loss treatment products, reflecting strong consumer engagement.

LG H&H experienced notable growth in North America, with second-quarter sales reaching 205.8 billion won (around US$151.6 million), a 47% year-over-year increase that exceeded sales in China. The company sees Mexico as a strategic hub for its Latin American operations and plans to expand into other major markets such as Brazil, while also aiming to strengthen its position on Mercado Libre, the region’s leading e-commerce platform.

Other South Korean firms are also expanding their retail footprints in Mexico. Silicon2, a prominent beauty distributor, has operated its Mexican subsidiary at full capacity since June. Both Amorepacific and APR have secured shelf space in major retailers like Sephora and Ulta Beauty, further indicating growing market penetration.

Despite the optimism surrounding Latin America’s potential, industry officials caution that barriers remain. Key challenges include complex local distribution networks and unfavorable trade conditions. Recently, Mexico increased tariffs on imported cosmetics to approximately 25% for countries without free trade agreements, including South Korea. This rise represents about a 10 percentage point increase and has been acknowledged by executives as a significant obstacle to expanded trade.

Kim Seung-hwan brought up the tariff issue directly with President Lee during the expo, highlighting the increased duties as a constraint on market growth. Industry representatives suggest that while companies are developing localization strategies tailored to Latin America, successful entry and expansion depend on national-level trade cooperation to mitigate tariff burdens.

As South Korean beauty brands continue to pursue growth in Mexico and beyond, balancing market enthusiasm with strategic adaptation to regulatory hurdles remains a focal point for their Latin American ambitions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.