Exports of cosmetics, fashion, food and lifestyle products rise 16.4 percent year-on-year, outpacing overall SME export growth; exporting firms expand to 27,000 as Europe and Latin America emerge as new markets

Foreign visitors browse cosmetics at an Olive Young store in Seoul. [Yonhap]
Foreign visitors browse cosmetics at an Olive Young store in Seoul. [Yonhap]

Exports of four key consumer goods categories — cosmetics, fashion and apparel, agricultural and fishery products, and lifestyle and baby products — by South Korean small and medium-sized enterprises rose 16.4 percent year-on-year to $9.58 billion through last month.

The Ministry of SMEs and Startups released preliminary export figures for the four categories covering January through May on Monday. The growth rate significantly outpaced the 9.3 percent increase recorded for overall SME exports during the same period.

The ministry attributed the strong performance to a diversification of overseas expansion strategies among SMEs, driven by the spread of hallyu content and the growth of global online platforms. Brand recognition built around K-beauty and digital marketing capabilities are spreading into fashion and food, strengthening the export competitiveness of consumer goods broadly. Industry observers say export growth could accelerate further if SMEs receive additional support in securing local retail networks and obtaining global certifications.

The four consumer goods categories now account for 18.4 percent of total SME exports, according to the ministry. The number of exporting firms in these categories grew 5.2 percent year-on-year to 27,000 — well above the 2.1 percent growth rate for all exporting SMEs.

While established markets such as the United States, China and Japan continued to post solid growth, the data also showed market diversification, particularly into Europe and Latin America.

The ministry said SMEs have sustained export growth through market diversification, leveraging product quality despite challenging conditions this year, including the ongoing conflict in the Middle East.

Cosmetics, the top SME export category, set a record for cumulative January-to-May exports, posting three consecutive monthly highs from March through May. K-beauty's global footprint is expanding as strong recognition for skincare and makeup products extends to sheet masks, body care and other segments.

On top of growth in the core North American and Asian markets, exports surged 61.1 percent in Europe — including the United Kingdom and the Netherlands — and 153.5 percent in Latin America, led by Brazil.

Fashion and apparel exports rose 13.6 percent, with growth driven not only by established designer brands and sports-casual lines such as golf wear, but also by SMEs gaining ground in newer segments — emerging designer labels and lifestyle wear — fueled by rising global interest in K-fashion, including idol and street styles. Beyond China, which remains the top export destination with a 43.4 percent share, demand expanded across greater Chinese-speaking markets, with Hong Kong up 31.9 percent and Taiwan up 20.0 percent.

Agricultural and fishery food exports climbed 16.0 percent, with seaweed and dried laver — accounting for a 21.2 percent share — leading the way. Other seafood products such as mackerel surged 43.4 percent, driven by rising alternative demand in Europe, up 73.3 percent, and Africa, up 99.3 percent.

Noh Yong-seok, first vice minister of SMEs and Startups, said K-beauty has established itself as a new export success model, built on the innovation and diversity of SMEs working in harmony with the production and retail infrastructure of large companies. "We will expand policy support to apply the K-beauty success formula to other sectors such as food and fashion," he said.


boo@heraldcorp.com