by The cosmetic OEM/ODM market involves contract manufacturing of cosmetic products and private labeling services for various skincare and beauty brands. Cosmetic OEM/ODM manufacturers create customized formulations for products such as facial creams, lotions, makeup, hair care items, and other personal care goods as per the requirement of brands. This allows cosmetic brands to focus on marketing and distribution aspects while outsourcing manufacturing responsibilities. The global cosmetic OEM/ODM industry has witnessed tremendous growth in recent years owing to rising demand for unique formulations and ever-evolving consumer preferences. Cosmetic brands rely on OEM/ODM partners for their R&D expertise, rapid prototyping capabilities, and competitive pricing to regularly introduce new products into the market.
The global Cosmetic OEM/ODM Market is estimated to be valued at US$ 59.9 Mn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the cosmetic OEM/ODM market is the growing demand for natural and organic personal care products. Increasing health awareness and clean beauty movement have prompted many consumers to shift towards natural ingredients-based cosmetics. This has encouraged OEM/ODM manufacturers to develop organic formulations using ingredients like botanical extracts, vitamins, and minerals. Another major trend is the customization as per consumer demographics. OEM/ODM partners analyze changing consumption patterns and formulate products catering to regional customer segments to meet their unique requirements. This has driven the demand for customizable recipes, formulations, and packaging solutions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market requires significant investment in facilities, machinery, and technology. However, the growing demand for cosmetic products may attract new players over the forecast period.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of several OEMs and ODMs providing similar services. Buyers can negotiate on price and switch between vendors easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials for cosmetics have several substitutes available. However, key materials suppliers wield some pricing power.
Threat of new substitutes: The threat of substitutes is moderate as there are a few alternative production processes. However, stringent regulatory norms favor established OEMs/ODMs.
Competitive rivalry: The competitive rivalry is high due to many regional and global players competing for market share. Market consolidation is expected with collaborations and mergers.
Key Takeaways
The Global Cosmetic OEM/ODM Market Size is estimated to be valued at US$ 59.9 Mn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030.
The global Cosmetic OEM/ODM Market is expected to witness high growth over the forecast period. The Asian region dominates the market currently due to the presence of several key players and lower costs. Countries like China, South Korea, and Japan account for a majority share. This can be attributed to factors like the growing cosmetic industry in the region driven by rising incomes, increasing focus on beauty products, and presence of key players based in China, South Korea, and Japan.
Key players: Key players operating in the cosmetic OEM/ODM market are Intercos S.p.A., Kolmar Korea Co. Ltd., Cosmecca Korea Co., Cosmax Inc., Mana Products Inc., KBL cosmetics Ltd., Urist Cosmetics Incorporated, Fareva Holding SA, Milliona Cosmetics Co., Ltd., Skinlys, Maesa SAS, Tricorbraun Inc., Herrco Cosmetics Limited, Architectural Beauty, Allure Labs Inc., Case Mason Filling, Inc., Pardaco Trading Pte Ltd. The top players are focusing on new product development, enhancement of production facilities, and strategic partnerships to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
