South Korean small and medium-sized enterprises (SMEs) have sustained double-digit growth in consumer goods exports, including cosmetics, fashion, and agricultural and fishery products, driving overall export expansion. This trend signals robust supply-chain demand for Korean-made beauty and lifestyle products, offering overseas buyers opportunities to diversify sourcing amid global uncertainties.
Export growth driven by cosmetics and market diversification
According to data released on June 16 by the Ministry of SMEs and Startups, exports of four key consumer goods categories by SMEs reached $9.58 billion in January-May 2026, up 16.4% year-on-year. This growth significantly outpaced the 9.3% increase in total SME exports. The four categories are cosmetics, fashion and clothing, agricultural and fishery products, and household and infant goods. Their share of total SME exports expanded to 18.4%, with the number of exporting companies rising 5.2% to 27,000.
Regional expansion: Europe and Latin America lead
Exports to Europe surged 39.6%, while those to Latin America jumped 66.1%. North America saw a 16.5% increase, and Asia grew 9.8%. This geographic diversification has helped sustain growth despite external uncertainties, signaling a shift away from over-reliance on traditional markets like the US, China, and Japan.
Cosmetics: Record highs and product category shifts
Cosmetics exports hit $4.09 billion, up 28.6%, setting new monthly records from March to May and an all-time high for the January-May period. Demand has broadened from basic skincare and makeup to mask packs and body care products. Notably, exports to Europe rose 61.1% and to Latin America skyrocketed 153.5%, indicating strong appetite for Korean beauty products in emerging markets.
What buyers should watch
For overseas importers and distributors, the sustained growth in Korean cosmetics—especially in mask packs and body care—presents sourcing opportunities. The expansion into Europe and Latin America suggests these regions are becoming key markets, potentially offering better margins or less competition. Additionally, the rise in fashion exports, driven by K-pop and street fashion trends, may signal new demand for Korean apparel and accessories. Buyers should monitor the Ministry's plan to extend the K-beauty success model to food and fashion, which could open new product categories.
Regulatory and channel signals
First Vice Minister Noh Yong-seok of the Ministry of SMEs and Startups stated, "The diversification of export markets shows that it is a solution to overcoming crises." The government aims to replicate the K-beauty success model in food and fashion, potentially leading to more promotional support and trade fairs for these sectors. This could benefit buyers seeking to expand their product lines with Korean consumer goods.
Source: Read the original report | Published: June 19, 2026