OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturing) businesses produce and develop the overall design and specifications of cosmetic goods in the cosmetics sector. ODM businesses transform their thoughts and formulations into actual and practical cosmetic goods for enterprises with limited resources in constructing and creating products. The ODM firms handle the R&D, product ideas, testing, and production in this method. In a nutshell, a cosmetic OEM provides formulas and specifications, whereas an ODM does the opposite.
A significant rise in disposable incomes over the last decade, development in global economies, changing lifestyles, and growing needs for skin and sun care products due to varied climatic conditions are the major market drivers for the worldwide cosmetics OEM/ODM market. The cosmetics OEM/ODM market is expected to increase in response to consumers' rising demand for more natural and organic beauty products, notably in the United States and Europe. As the demand for natural, herbal, and organic beauty products grows, producers will have more possibilities to innovate and develop new products that cater to customer tastes.
The global cosmetics OEM/ODM market size is predicted to reach over USD 85.22 billion by 2028. The cosmetics OEM ODM industry is entirely reliant on the market's dynamic developments in cosmetics and personal care goods. Because the cosmetics business is driven by customer needs, forecasting trends is difficult because they vary depending on age, ethnicity, and demography. Because the skincare area of the cosmetics industry has experienced great growth, OEM manufacturers have been awarded a considerable number of contracts for the delivery of products such as sunscreens, BB creams, moisturizers, gels, and other similar items.
Nonetheless, in the future, growing markets for cosmetics OEM/ODM will present profitable prospects. Top cosmetics OEM/ODM businesses are always focused on the creation of sophisticated products that will fuel market growth over the next ten years. Organic cosmetics are becoming increasingly popular in both developed and developing nations. More than 55 percent of women in the United States have contemplated purchasing natural skincare products rather than those with chemical excipients that are currently available on the market. The belief that natural products enhance skin tone and texture is the most important element affecting customer purchasing behavior.
Cosmetics OEM/ODM Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 85.22 billion|
|Growth Rate||CAGR of 5.4% during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||OEM/ODM market are Cosmo Beauty, COSMAX, Nox Bellow Cosmetics, Intercos, Toyo Beauty, Cosmecca, PICASO Cosmetic, Nihon Kolmar, Mana Products, and Kolmar Korea.|
Key Segments of the Global Cosmetics OEM/ODM Market
Type Overview, 2019-2028 (USD Billion)
Application Overview, 2019-2028 (USD Billion)
- Color cosmestics
Regional Overview, 2019-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global cosmetics OEM/ODM market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global cosmetics OEM/ODM market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the cosmetics OEM/ODM industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on component, application, and industry vertical. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global cosmetics OEM/ODM market. The report will benefit Every stakeholder involved in the cosmetics OEM/ODM market.
- Managers within the cosmetics OEM/ODM industry looking to publish recent and forecasted statistics about the global cosmetics OEM/ODM market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global cosmetics OEM/ODM market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
The global cosmetics OEM/ODM industry is competitive, with the top regional competitors of the industry. Major players in the global industry are Cosmo Beauty, COSMAX, Nox Bellow Cosmetics, Intercos, Toyo Beauty, Cosmecca, PICASO Cosmetic, Nihon Kolmar, Mana Products, Kolmar Korea, and among others.
Mergers and acquisitions, major investments, collaborations, new product launches, and capacity expansion are all important techniques utilised by large multinational corporations to boost their market share. To fulfil a wide range of consumer requests, the market's leading firms have a large worldwide footprint and a diverse product portfolio. Throughout the forecast period, developing areas are anticipated to become major markets for cosmetics OEM/ODM s due to growing demand from end-user industries.
China, Hong Kong, the United States, Singapore, Germany, and France are projected to be prospective OEM ODM markets due to the presence of a well-established consumer base, increasing/increasing spending on beauty goods, and overall personal care. The luxury cosmetics market is anticipated to develop significantly in the future years as a result of increased expenditure on high-end skin care products by the middle and upper classes of society.
Because customers are eager to try and utilise new products, premium skincare products are predicted to have the greatest development potential. A large pool of investors is also catching up with the luxury cosmetics market's potential. In the previous two years, a large number of mergers and acquisitions have occurred, attracting equity investors to these firms.Top of FormBottom of Form
Based on the type segment, the market is bifurcated into OEM and ODM types. In terms of R&D, ODM stands for original design manufacturer, and it varies from OEM. Contract manufacturing, as well as product creation and research, are all services provided by ODM businesses. The introduction of a new product necessitates extensive research and development, which ODM firms may help with.
Cosmetic firms place a strong emphasis on their distribution network as well as the branding and marketing of their products. Because some firms lack effective R&D, they must rely on ODM companies for their goods. In the next years, rising demand for cosmeceuticals, which combine medicinal components with cosmetic formulations, is projected to increase ODM sales.
API incorporation in cosmetics necessitates extensive R&D and regulatory approval, both of which are supplied by ODM businesses. Because skincare cosmetics follow a seasonal trend, new products are introduced each season, making the market extremely dynamic in terms of demand and supply. In order to provide a successful product in the market, ODM businesses must watch seasonal demand by area in order to adapt to the client's needs.
On the basis of application, the market is segmented into skincare, haircare, color cosmentics, and fragrances. The skincare sector sized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. Because of the huge variety of products available on the shelf in the category, the face creams sector has the greatest market share in skincare. Skin brightening creams, moistrizerers, and other similar goods are the most sellable and are unaffected by seasonal demand. Whereas, anti-tan creams have highest demand in summers where temperatures peak and UV protection is required.
Customers usually want to buy the newest goods on the market, thus product innovation in the skincare category has been a significant growth factor. Ingredients like bakuchiol, pumpkin, and blue algae are becoming increasingly popular in formulations, with high acceptance rates predicted among the general public. Bakuchiol is a natural retinol counterpart that has none of the retinol's negative effects, making it a popular alternative. The component is likely to be used in anti-aging and anti-acne treatments, with promising effects.
In the predicted period, the Asia Pacific area is expected to record for the determined market contribution. The dominance of this area may be ascribed to the existence of important nations with significant stakes in the supply of OEM/ODM goods to global brands, such as China, Japan, and Korea, as well as other reasons. In the coming years, the demand for colour cosmetics is expected to rise due to rising population in countries such as China and India, as well as the adoption of western culture by Generation X from countries such as India, Japan, and various South East Asian countries.
Global leaders such as Cosmecca Korea Co. Ltd., Cosmax, and Korea Kolmar were present. In the future years, the continent, which has a significant market share in the worldwide market, has a good growth potential. Due to the availability of well-established research and development facilities and strong brand image of OEM/ODM firms in the global market, major cosmetic brands prefer Korean companies for OEM/ODM services. Korea has a significant presence in both the cosmetics and ODM/OEM markets, as one of the major exporters of cosmetics to both the global and local markets.
The major players of the global cosmetics OEM/ODM market are Cosmo Beauty, COSMAX, Nox Bellow Cosmetics, Intercos, Toyo Beauty, Cosmecca, PICASO Cosmetic, Nihon Kolmar, Mana Products, Kolmar Korea, and among others. Prominent companies are posing new and innovative cosmetics OEM/ODM products. They are also investing in and purchasing small firms in order to boost their profitability. Due to the industry's fierce rivalry, market concentration will be significant as significant enterprises with large market shares focus on increasing their customer base across international markets. Major competitors in the target market are using a number of business tactics to get a competitive edge in the global market, including partnerships, new solutions, large investments, strategic alliances, and mergers and acquisitions.