The considerable rise in disposable incomes, particularly in developing as well as developed states are driving the cosmetics OEM/ODM market growth
The global cosmetics OEM/ODM market size is likely to attain over USD 85.22 billion by the year 2028. Besides, it is likely to project a CAGR of nearly 5.4% during the forecast years 2021-2028. Cosmetic OEM and ODM services are provided to a variety of cosmetic brands, including independent, private label, and legacy. It has benefits such as faster product launches and better inventory management. Because they lack the necessary resources, smaller cosmetic companies chose cosmetic OEM/ODM. Cosmetic OEM/ODM is preferred by large businesses because of their knowledge and resources.
Consumer desire for organic and natural ingredient-based goods has shifted as a result of growing knowledge of the harmful consequences of chemicals used in BPC products. Organic goods or products developed with extracts obtained from natural materials such as seeds, fruits, and floral extracts have seen growing prospects in cosmetic OEM/ODM. Government regulatory authorities oversee the production of cosmetics. Different raw ingredients used in the manufacture of cosmetics are also controlled. As a result, the cosmetic ODM/OEM market's growth is being affected.
The demand for cutting-edge cosmetics and personal-care products is growing. There are plenty new revolutionary beauty and personal care products on the market. Cosmetic OEM/ODM also provides such brands with cutting-edge solutions. This, in turn, is propelling the cosmetic OEM/ODM industry forward. The OEM/ODM market is benefiting from the lucrative expansion of the cosmetics and personal care industry.
To increase their client base, players in the worldwide cosmetic OEM/ODM market use a variety of growth tactics. For example, in 2019, KBL Cosmetics released Foldable Triangle Eye shadow, a new innovation design product. Cosmax invested $50 million for a majority share in Nuworld, a cosmetics developer and producer based in the United States. To acquire a competitive edge in the cosmetics manufacturing industry in the United States, Cosmax aims to improve its local production facilities, as well as research and marketing.
The report also emphasizes several distinctiveness of the global cosmetics OEM/ODM industry by valuing the market from value chain breakdown. Moreover, the report encompasses numerous qualitative features of the cosmetics OEM/ODM industry which comprises market restraints, drivers, as well as key industry opportunities. Furthermore, the report offers an inclusive evaluation of the company profiling along with the market rivalry of local and global vendors.
The cosmetics OEM/ODM market has tough competition among the new emerging and pre-established market vendors. Besides, the cosmetics OEM/ODM industry vendors are trying to capture the prospective markets to grab a competitive advantage over the remaining industry vendors. To capture the market, market players are forming agreements, acquiring other companies & startups, mergers & acquisitions, partnerships & collaboration, and escalating their business existence.
Based on the type segment, the market is bifurcated into OEM and ODM. In 2020, the OEM type segment accumulated the significant market share and it is likely to continue its dominance throughout the forecast years. Based on the applications, the market is segmented into skincare, hair care, 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. Asia Pacific 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.
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, and Kolmar Korea. Renowned companies are offering new cosmetics OEM/ODM products. In addition, the previously recognized as well as new market players are approaching the market with advanced and new strategies to remain competitive in the global market. For instance, the year 2017 was the most successful year in the history of cosmetics industry. With several new product launches from multiple manufacturers, Rihanna introduced her beauty line. In addition, additional launches are planned in 2019, with OEMs receiving production contracts.
Segment Overview of 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)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America