Cosmetic OEM/ODM refers to companies that specialize in product development, formulation, manufacturing and packaging of beauty and personal care products under their own or customer’s brand on a contract or ODM/OEM basis. They provide customized services from concept and formulation development to packaging design and production.
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:
Innovation in skin care products is one of the major trends witnessed in the cosmetic OEM/ODM market. There is a growing demand for innovative skin care products offering anti-aging benefits. Cosmetic OEM/ODM companies are investing heavily in research & development to offer customized skin care solutions to their customers. They are developing products containing innovative ingredients such as natural extracts, peptides, vitamins and other active ingredients that hydrate, protect and rejuvenate the skin. This trend is expected to drive the demand for contract manufacturing and formulations of advanced skin care products, thereby supporting the growth of cosmetic OEM/ODM market over the forecast period.
SWOT Analysis
Strength: The cosmetic OEM/ODM market has strong expertise in product design and development. Companies can leverage their R&D capabilities to meet evolving consumer preferences.
Weakness: Mid-sized companies have lower bargaining power compared to global brands. They also face intense competition on pricing from Chinese manufacturers.
Opportunity: Growing demand for natural and organic cosmetic products across regions presents new revenue streams. Companies can expand their portfolios into skin care and hair care segments.
Threats: Stiff competition from in-house manufacturing capabilities of global brands can reduce orders for third-party OEM/ODM players. Stringent regulations associated with product quality and safety also pose challenges.
Key Takeaways
The Global Cosmetic OEM/ODM Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 59.9 million in 2023 registering a CAGR of 7.2% during the period.
Regional analysis: The Asia Pacific region currently dominates the cosmetic OEM/ODM market owing to a large consumer base and presence of key manufacturers in countries like China, South Korea, and Japan. China has emerged as the largest market supported by low-cost manufacturing facilities. North America and Western Europe are other major regions driven by growing cosmetic expenditures.
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 companies are focusing on new product innovation and expanding their manufacturing footprints in developing countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it