"They're Selling Like Hotcakes" Not Just Semiconductors... This Sector Thrives in the U.S. and Europe [Weekend Money]

SK: "K-beauty’s First-Half Momentum to Continue into the Second Half"
APR and Kolmar Korea Recommended as Top Picks

There are expectations that the robust export momentum in the cosmetics sector, which gained significant traction in the first half of the year, will continue into the second half of 2026. Analysts attribute this to strong export performance in North America and Europe.

Hyung Kwonhun, a researcher at SK Securities, stated, "K-beauty is no longer confined to a niche market in the U.S. beauty industry but is instead becoming part of the mainstream market," and added, "In Europe, K-beauty’s market penetration is increasing across both online and offline channels."

Yonhap News Agency

The export momentum of K-beauty, meaning the cosmetics sector, shifted into a strong upward trend in the first half of this year. As of last month’s cumulative data, export growth—excluding China—reached 31%, surpassing the previous year’s figure for the same period (22%).

Securities industry experts believe that this strong performance will continue into the second half of the year. Researcher Hyung explained, "In the U.S., K-beauty’s market share has remained stable on Amazon, while the entry of a wider variety of brands into numerous offline retail channels is expected to accelerate K-beauty’s penetration of the U.S. offline market." In particular, APR is now entering major retailers such as Target, Walmart, and Costco.

In the European market, K-beauty is making inroads both online and offline. Hyung noted, "Online, in the Amazon channels of the five major Western European countries, K-beauty’s BSR (Best Seller Rank) scores are surging, led by brands such as Medicube and d'Alba," and added, "Offline, in the second half of the year, brands with proven track records in the U.S. such as Medicube, Beauty of Joseon, Anua, and Biodance are expected to expand into local drugstores and specialty stores."

Based on this analysis, the recommended stocks for the second half are APR and Kolmar Korea. Hyung assessed, "APR is expanding its regional and channel presence faster than any other listed brand, both in U.S. offline and European online and offline markets this year, so investors should approach it with the potential for further upside in both performance and valuation multiples in mind." Regarding Kolmar Korea, he commented, "It is the most attractive investment in terms of strong cosmetics export momentum," and predicted, "This year’s standalone revenue growth rate will reach 20%, higher than last year, with significant quantity growth centered around existing SKUs. As a result, the operating margin is expected to improve by about 1 percentage point."

This content was produced with the assistance of AI translation services.