“The Cosmetics OEM/ODM Market was estimated at US$ 53.4 billion in 2020 and is expected to grow at a CAGR of 5% during 2021-2026 to reach US$ 71.4 billion by 2026.”

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Market Dynamics

Introduction

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 on 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 from the consumers is driving the market growth. 

• Growing digitalization and increasing penetration of e-commerce platforms selling the products is likely to spur 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 market growth. 

COVID-19 Impact

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 market growth.

Segments Analysis

Application Trends

“The skincare segment is likely to dominate the market during the forecast period.”

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 market growth significantly.

Regional Analysis

“The Asia-Pacific region 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 because of rising appearance awareness. High demand for organic and premium skin & hair care products is likely to propel the market growth in developed regions. 

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc. 

The following are the key players in the global cosmetics OEM/ODM market (arranged alphabetically).

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

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, validation, and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data. 

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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