Cosmetics OEM ODM Market Report

Market Insights

The Global Cosmetics OEM/ODM market is estimated to grow from USD 53.4 billion in 2020 to USD 71.4 billion by 2026 at a healthy CAGR of 5% during the forecast period.

Figure: Global Cosmetics OEM/ODM Market Size, 2020-2026 (USD Billion)

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What is Cosmetics OEM?

Cosmetics OEM (original equipment manufacturer) is defined as a company that is engaged in the creation and formulation of cosmetic products in private labels for other companies. Most of the cosmetics products available in the market are produced by OEMs. Cosmetic ODM is defined as the company that designs and manufactures the product and sells it in the market under its name. The usage of OEM in the cosmetic industry provides benefits such as high profit margin, original product, and intellectual property. 

Market Dynamics

• Increasing spending on cosmetics and personal care products coupled with rising per capita disposable income of the consumers is driving the market growth. 
• Growing digitalization and increasing penetration of e-commerce platforms selling the products is likely to spur the market growth considerably during the review period. 
• Increasing preference for natural and organic beauty products is anticipated to create lucrative opportunities for the players operating in the global cosmetics OEM/ODM market during the review period.

However, increasing regulations about the usage of chemical-based cosmetic and personal care products due to their side effects on the skin is likely to hamper the market growth. 

Market Segmentation

Application Trends

The market has been segmented into skin care, makeup, haircare, and others.

The skincare segment accounted for more than 31% share of the market and is likely to dominate the market in the coming years owing to increasing concern regarding skin health among consumers. In addition to this, the rising demand for organic and natural skincare products is likely to bolster the market growth significantly.

Regional Trends

Regionally, Asia Pacific accounted for the largest market share in 2020 and is expected to grow at the fastest CAGR during the review period. The market growth can be attributed to an increase in spending on personal care products particularly by the young population as a result of rising appearance consciousness. High demand for organic and premium skin & hair care products is likely to propel the market growth in developed regions. 

COVID-19 Impact on Global Cosmetics OEM/ODM Market

The global beauty & personal care industry has been hit hard due to the outbreak of coronavirus.

The economic magnitude of the COVID-19 virus on retailers and brands was high, although this industry is likely to gain normalcy and prove resilient shortly. Also, some skincare product manufacturers witnessed a boost in sales during the pandemic period. With the lift of lockdown, the demand for cosmetics and personal care products is likely to gain pace and thus, support the market growth.

Critical questions answered in the report -

• What are the key trends in the global cosmetics OEM/ODM market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
• What is the impact of COVID-19 on the global cosmetics OEM/ODM market? 
• What are the key strategies adopted by the major vendors to lead in the global cosmetics OEM/ODM market?
• What is the market share of the top vendors?

Target Audience

The demographics of customers that are most likely to buy the products are also provided by Stratview Research. Here are a few- 

• Cosmetics OEM/ODM manufacturers
• Skincare companies
• Cosmetic companies
• Logistics organizations
• Cosmetics OEM/ODM distributors

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Key Players

Top 10 players

Key players operating in the global Cosmetics OEM/ODM market are 

• Intercos Group (Italy),
• Nox, Bellow Cosmetics Co., Ltd (China),
• NIHON KOLMAR CO., LTD (Japan),
• Cosmax Inc (South Korea),
• Kolmar Korea (South Korea),
• Cosmecc (South Korea),              
• Cosmo Beauty Co., Ltd (Japan),
• Toyo Beauty Co., Ltd (Japan),
• RAPHAS Co., Ltd (South Korea), and
• Estate Chemical Co Ltd (Japan).

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