In the first half of this year, SME exports exceeded USD 60 billion for the first time on record, with K-beauty rising to become the largest export category and driving all-time high performance. Cosmetics exports increased by more than 30%, and markets are expanding rapidly, particularly in Latin America and Europe, reducing dependence on specific countries.

According to the “Trends in SME Exports in the First Half of 2026” released by the Ministry of SMEs and Startups, SME cosmetics exports in the first half of this year totaled USD 5.07 billion, up 30.7% from the same period last year. This is the highest first-half performance on record.

Among all SME export items, cosmetics recorded the highest export value, once again demonstrating the global competitiveness of K-beauty.

The export markets also expanded rapidly. Exports to Europe increased by 62.4% year-on-year, and those to North America rose by 36.8%. In particular, exports to the emerging market of Latin America surged by 131.9%, while the Middle East also showed signs of recovery with a 9.9% increase in the second quarter.

● “Riding online to the world”…K-beauty exporters exceed 8,000 companies

Online sales also continued to grow. In the first half of this year, online cosmetics exports increased 85.3% year-on-year to reach USD 520 million, setting a new record high. Sales rose significantly not only in the United States and China but also in the Netherlands and the United Kingdom, indicating that K-beauty’s influence in the global online market has expanded.

In the United States, content commerce, local retail pop-ups, and experiential marketing have produced results, driving increased demand for K-beauty. In Europe, exports have grown centering on logistics hub countries such as Poland and the Netherlands, maintaining double-digit growth rates since the third quarter of 2022.

The number of exporting companies also increased. In the first half of this year, 8,135 SMEs exported cosmetics, up 8.5% from 7,498 companies a year earlier. Both the number of new exporters and the number of existing exporters that maintained exports reached all-time highs.

● Basic skincare leads exports…markets expand into Latin America and Europe

By product category, exports of basic skincare products were the largest at USD 2.32 billion, up 34.8% from the previous year. This was followed by other cosmetics at USD 1.38 billion (36.1%), mask packs at USD 260 million (53.0%), and makeup products at USD 250 million (4.2%).

The growth in basic skincare is analyzed to stem from differentiated ingredients and product portfolios focused on skin care. Market research firm NIQ (NielsenIQ) assessed that distinctive ingredients such as snail mucin and fermented extracts, reasonable price ranges, along with TikTok Shop, viral content, and collaborations with creators have driven the spread of K-beauty in the United States.

As a result, K-beauty sales in the U.S. reached USD 2 billion last year, up 37% from the previous year, with facial skincare leading the growth.

Shim Jae-yoon, Director General for Global Growth Policy at the Ministry of SMEs and Startups, stated, “Despite unstable external conditions such as wars, SMEs are achieving strong results based on a diverse range of products including K-beauty and the expansion into emerging markets such as Latin America,” adding, “For sustained growth, diversification of product categories and export markets is crucial.”

He continued, “The Ministry of SMEs and Startups will actively support domestic market-focused companies in becoming exporters and strengthen the capabilities of existing exporting companies so that the success of K-beauty can spread to other product categories and SMEs can grow into the key drivers of Korea’s exports.”

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