OEM/ODM Cosmetics Market Size, Share, Growth and Industry Analysis by Type (OEM, And, ODM) By Application (Skincare, Makeup, Hair care, And, Others) Regional forecast to 2033

OEM/ODM COSMETICS MARKET REPORT OVERVIEW

The global OEM/ODM cosmetics market size was USD 33.95 billion in 2025 and the market is projected to touch USD 53.17 billion by 2033, exhibiting a CAGR of 5.7% during the forecast period.

Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) cosmetics relate to models where a firm buys cosmetic products from another manufacturer. While OEM brands work on creating products according to another brand name’s guidelines, ODM companies develop products that are virtually ready for branding. These models enable a brand name company to sell good cosmetics even when it does not engage in actual production of these products. Many cosmetic manufacturers work as OEM/ODM service providers, which can help brands to achieve high efficiency, effective cost control, and high flexibility, so that they can focus on marketing and sales promotions, while outsourcing the technical products to specialized manufacturers.

COVID-19 impact:

Downfall in Level of Production and Product Delivery during Pandemic Decreased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The OEM/ODM cosmetics sector was heavily affected by the COVID-19 pandemic in terms of supply chain and production disruptions and worldwide flows. Production and product delivery was affected by lockdowns and labor shortages. Consumers started to spend more on skincare and hygiene products, rather than spending money on beauty and cosmetics. But then with the advent of e-commerce and online shopping the fortunes of the industry improved so dramatically because a lot of people prefer to seek beauty solutions from the comforts of their homes. Still, OEM/ODM manufacturers did not stand still and, with the help of digitalization tools, continued their work, actively focusing on the issues of hygiene and sustainability in order to meet market needs.

LATEST TRENDS

"Demand for More Natural, Non-Testing, and Non-Toxic Cosmetic Products to Accelerate Market Growth"

The trends in OEM/ODM cosmetics that have emerged more recently include sustainable or clean beauty cosmetics as well. The consumer is demanding more natural, non-testing, and non-toxic cosmetic products which has lead to manufacturers adopting green processes. These are some of the ways brands are leaning towards being environmentally friendly, including; biodegradable packaging, organically sourced raw materials, and truthful labeling. The other trend is linked to customization of cosmetic products in the sense that the customers can actually modify the product to their tastes. Moreover, the term Digital Beautification tools and Virtual trials are becoming trends to buy beauty products as these engage customers to taste the products virtually. These trends show the general inclination in the increasing need for ethical, individualized, and technology based solutions for the beauty services. These trends are driving the OEM/ODM cosmetics market growth.

OEM/ODM COSMETICS MARKET SEGMENTATION

By Type:

Based on Type, the global market can be categorized into OEM, and, ODM

• OEM (Original Equipment Manufacturer): Original Equipment Manufacture cosmetics refer to the cosmetics that are produced formerly through the manufacturing process by using specifications and designs of a brand. This makes it possible for firms to concentrate in the sale of the final products while sourcing for manufacturers who will be fully involved in producing the products.
• ODM (Original Design Manufacturer): ODM Cosmetics’ services include a full turnkey solution by which manufacturers design and create products. Century brand companies can develop new products with ODM companies ready for the market thereby cutting down on the time taken and resources used in the development of the products.

By Application:

Based on Type, the global market can be categorized into skincare, makeup, hair care, and, others

• Skincare: Cosmetics products are used for the enhancement and sustenance of health skin conditions in the body. These are products which are used to clean the skin or to moisturize it or serums and treatment products that are used to solve a number of skin problems including aging, acne and dryness.
• Makeup: Cosmetics are products that improve or change the facial structures such as lipsticks, foundations, eye shades, and colors as well as mascaras. They enable people to show unique ideas and to emphasize their physical characteristics for various events.
• Hair care: They are products that are used in maintaining the wellbeing and state of hair. In this segment, we have shampoos, conditioners, hair masks and style products meant to nurture, guard and transform hair to make it healthy and lively.
• Others: The Other segment include broad range of products that are neatly classified into various categories such as body fragrances, nails manicure products, oral hygienic products and body lotions. Some of these products are needed for body, beauty and wellness requirements which are in addition to skin care, makeup, and hair products.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Increased Consciousness of Need for Skincare, And Particularly For Youthful Skin to Amplify Market Growth"

Increased consciousness of the need for skincare, and particularly for youthful skin, fuels the market. People are not just learning the composition of the food they eat, but also the outputs of those ingredients, making them more selective with their skin and hair products and require products with specific concerns such as acne, aging skin, and sensitive skin. Also, more people turned their attention to skin care and wellness in recent years due to the pandemic and, therefore, are willing to spend more on caring for their skin. Other important factors include sustainability/Environmental concerns since many consumers are opting for none tested organic, recycled products in their skincare. All of the above-mentioned factors are driving the OEM/ODM cosmetics market share.

"Use of Social Media Platforms for Marketing to Propel Market Growth "

The use of makeup is therefore a result of desire to meet the new beauty standards and the use of social media platform. Social media platforms such as Instagram, TikTok have only boosted makeup lessons and new trends, and increased user curiosity evoking novel products. This has also contributed to expansion of the kind of makeup designs and colors as people aiming at attaining individuality. In addition, an increase in the demand for products that are long wearing and that can also do multiple jobs in a single application such as during the Covid-19 pandemic when wearing of masks and being out for longer hours became the order of the day.

Restraining Factor

"Dangerous Products Used in cosmetic Products to Decrease Market Growth"

A rising concern, which acts as a constraint to the cosmetics industry today, is the safety of products and their ingredients. Today’s markets are endowed with information on negative effects that certain chemicals, allergens may have on the skin and hence the search for natural products. We have seen this exert pressure on brands to change formulations and adhere to very high regulatory requirements thus increasing the manufacturing costs. Further, the spate of imitation products especially fragranced and colored cosmetics causes challenges since they flood the market particularly through e-marketing and the effects are that customer loyalty diminishes and sometimes runs into danger owing to possible bad reputation. These are the factors that slow down the market development and hinder novelties appearances.

Opportunity

"Increasing Interest in Green, Clean and Sustainable Beauty Products to Create an Opportunity in the Market"

The market has shown an increasing interest in green, clean and sustainable beauty products which act as a potential for the cosmetic business. Customers demand natural products, products not tested on animals, and those products that have eco friendly packaging. There is pressure shift here that opens up opportunities for brands to create new value propositions, values that are aligned with ethical standards. Moreover, new formats that emerged during the Covid period with the help of advertising and new technologies like AI and AR give companies opportunities for a consumer approach and possibilities for meeting the needs of the wide range of customers. These factors are creating several opportunities in the market.

Challenge

High Competition and Oversaturated Markets to Create Challenge in the Market

Another problem of the cosmetics industry is high competition and oversaturated markets around the world. Since there’s a host of brands pouring their products in to circulation, capturing the consumer attention and creating brand equity is a mammoth task. E-business has also caused severe price competitions as firms continue to drop prices for their products while increasing quality. Also, the overall management of sustainability issues of every supply chain starting from purchasing raw materials and reaching packaging creates operational and financial problems. Paying attention to the regulatory requirements of various countries becomes a challenge for the world’s leading brands.

OEM/ODM COSMETICS MARKET REGIONAL INSIGHTS

• North America

Accordingly, the cosmetic products market in North America is growing, fueled by the rising popularity of natural, non-animal tested, and environmental friendly cosmetics. There is ballooning interest in beauty regimes, which has seen interest in skincare and clean beauty spike. One of the important distribution channels is e-shopping because consumers stock up on necessities, and have a range of choices at their fingertips. Hence social media influencers such as beauty gurus are vital players in this trendsetting online space as well as being key drivers of brand loyalty. Increased consumer expectation for customized products and services as well as a diverse population is also a consideration for this emerging cosmetics market.

• Europe

Europe continues to be a rampant market for luxury and premium beauty products since the consumers here are very selective with quality, sustainability, and the environment for the beauty products they use. Against this background, the region has experienced a true revolution in the sphere of clean, organic beauty products, with several European brands taking the forefront of green beauty advancements. The European market is also characterized by high standards of regulation of both safety and information transparency. Also, the multi-functional product and the increase in personalization make a more complete solution for skin care and makeup.

• Asia

Beauty innovations originate more from Asia especially China, Japan and South Korea and the marketplace is most focused on skincare. The K-beauty or the Korean beauty has gained a reputation all over the world in shaping the routines people take to maintain their skins. Through Asian customer approaches people of Asia prefer quality products with emphasis on skincare products that offers anti aging and skin whitening. Consumers’ need for affordable luxury goods and services is on the rise and e-retail technologies are generally on the upswing. In addition, social networks and influencers shape purchases; as a result, customer trends include the usage of sheet masks, serums, and facial tools.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive"

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

Here are the headquarters of the listed companies with the correct format:

• COSMAX (South Korea)
• Intercos (Italy)
• Kolmar Korea (South Korea)
• Nihon Kolmar (Japan)
• Cosmo Beauty (South Korea)
• Nox Bellow Cosmetics (South Korea)
• Mana Products (U.S.)
• Toyo Beauty (Japan)
• PICASO Cosmetic (South Korea)
• Cosmecca (South Korea)
• Chromavis (Italy)
• BioTruly (China)
• Ancorotti Cosmetics (Italy)
• Opal Cosmetics (U.S.)
• Ya Pure Cosmetics (China)
• Bawei Bio-Technology (China)
• Ridgepole (South Korea)
• B. Kolor (South Korea)
• Life-Beauty (China)
• ESTATE CHEMICAL (China)
• Foshan Wanying Cosmetics (China)
• ANTE (Suzhou) Cosmetics (China)
• Jiangsu Meiaisi Cosmetics (China)
• Zhen Chen Cosmetics (China)
• Easycare Group (China)
• Homar (China)
• Francia Cosmetics (South Korea)

INDUSTRIAL DEVELOPMENT

December 2024: One the most important innovation in the skincare is the concept of smart and individualized products and services. AI and big data technology enablers help brands deliver personal care solutions where the product is customized according to the unique skin type and issues faced by any consumer. Also, the concern for clean beauty is in the rise, where companies have started opting for organic, natural and non-toxic with sustainability norms. They also pointed out an increase in beauty tech, this include smart device for skin diagnosis and treatment that has also promoted higher level of precision to skincare in addition to making the product usage more enjoyable.

Report Coverage

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.