Global Cosmetic OEM/ODM Market to Surpass US$ 80.4 Billion by 2027 - Coherent Market Insights

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Nov 26, 2019, 10:32 ET

SEATTLE, Nov. 26, 2019 /PRNewswire/ -- The global cosmetic OEM/ODM market was valued at US$ 50 billion in 2018 and is expected to exhibit a CAGR of 5.7% over the forecast period (2019–2027).

Key Trends and Analysis of the Cosmetic OEM/ODM Market:

Increasing demand for cosmetic OEM/ODM from cosmetic independent, legacy, and private label brands is driving growth of the cosmetic OEM/ODM market. Independent brands such as Kylie cosmetics, Huda Beauty, Gerard Cosmetics, Dose of Colors, and others are rapidly gaining popularity among consumers. In 2018, Amazon, an e-tailer, launched Indie beauty Shop for beauty and personal care products introduced by independent brands. Such initiatives are further driving demand for independent brands.

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Many companies are launching new private label brands, owing to increasing demand for these products. For instance, in March 2019, Amazon launched moisturizers, cleansers, and skin treatment products under the brand, Belei, in the U.S. In January 2019, Amazon launched lip bundles, nail care bundle, and eye shadow among others under its Find brand in Europe.

Key Market Takeaways:

The global cosmetic OEM/ODM market is expected to exhibit a CAGR of 5.7% over the forecast period (2019–2027), owing to increasing demand for beauty and personal care products. For instance, according to data released by the International Trade Administration in 2018, Mexico is ranked among top 10 markets of the world for cosmetics and personal care products. As per the same source, Mexico's cosmetics and personal care products market was valued at US$ 6.81 billion in 2015, which increased to US$ 7.11 billion in 2017.
Cosmetic OEM/ODM are launching novel digital technologies for improving their visibility. For instance, Schwanhäußer Holding GmbH & Co. KG has a sales and marketing app for its customers. The app showcases the company's products and helps its customers to configure its products. Schwanhäußer Holding GmbH & Co. KG also provides color visualizer for quick and efficient detection and implementation of color preferences of its clients.
Asia Pacific is expected to be the fastest growing region in the global cosmetic OEM/ODM market during the forecast period. This is attributed to the growing cosmetics and personal care market in the region. According to Korea Pharmaceutical Traders Association, the total number of cosmetic manufacturers in South Korea was 2,030 in 2016 and the cosmetic production was valued at US$ 7.7 billion in 2014. Moreover, the cosmetic market in South Korea was valued at US$ 7,158 million in 2014 and increased to US$ 7,558 in 2015. Korea Kolmar, Cosmax, and Cosmecca are the largest contract cosmetic manufacturers in South Korea. Cosmax produces a range of products for over 300 customers and accounted for a share of 34% among contract cosmetic manufacturers in South Korea in 2018.
Players operating in the global cosmetic OEM/ODM market are adopting various growth strategies to expand their customer base. For instance, in July 2019, KDC-ONE entered into a conditional agreement to acquire manufacturing business and associated assets of Swallowfield, which is engaged in the development, formulation, and production of quality products for personal care and beauty brands, for total cash consideration of around US$ 57 million.

Major players operating in the global cosmetic OEM/ODM market include-

Intercos S.p.A., Kolmar Korea Co. Ltd., Scalpi Cosmética sa, Cosmecca Korea Co., Cosmax Inc., Mana Products Inc., KBL cosmetics Ltd., Urist Cosmetics Incorporated, Fareva Holding SA, Milliona Cosmetics Co., Ltd., Skinlys, Maesa SAS, Schwanhäußer Holding GmbH & Co. KG, Tricorbraun Inc., Herrco Cosmetics Limited, Architectural Beauty, Allure Labs Inc., Case Mason Filling, Inc., Pardaco Trading Pte Ltd, and KDC/ONE among others.

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