The cosmetic OEM and ODM market involves contract manufacturing of cosmetic products according to the specifications provided by brand owners. Key cosmetic categories manufactured through the OEM and ODM model include skin care, hair care, color cosmetics, and fragrances. Cosmetic OEM and ODM service providers help brand owners to accelerate time to market with their expertise in product design and development, packaging, manufacturing, and quality testing.
The Global cosmetic OEM and ODM Market is estimated to be valued at US$ 63.74 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 To 2031.
Consumers today demand personalized and customized cosmetic products according to their specific skin and hair needs. This has driven cosmetic brands to focus more on specialized and niche products. Partnering with OEM and ODM service providers enables brands to introduce a varied product portfolio in shorter cycles based on changing consumer demands.
Key Takeaways
- Key players operating in the cosmetic OEM and ODM market are IBM Corporation, Zinc8 Energy Solutions Inc., PolyPlus Battery Company, Panasonic, Tesla, Fuji Pigment, and Breathe Battery Technologies Limited.
- Rising disposable incomes and improving living standards globally have augmented the spending capacities of consumers on high-quality cosmetic products. Cosmetic Oem/Odm Market Demand partnerships help brands to cater to the vast middle-income demographic.
- Advancements in material sciences have enabled cosmetic formulators to incorporate novel ingredients that impart specific anti-aging, brightening, or moisturizing benefits. OEMs and ODMs help brands leverage the latest technologies through their in-house R&D capabilities.
Market Trends
- Skincare has emerged as the leading category in the cosmetic OEM/ODM space, driven by the growing popularity of customized serums, moisturizers, and exfoliants. OEMs produce these specialized products more cost-effectively on a large scale.
- ‘Clean beauty’ trends are prompting brands to emphasize natural/organic ingredient profiles and eco-friendly packaging. OEMs/ODMs play a key role in sustainable product development and certification acquisition for brands.
Market Opportunities
- The male grooming segment is exhibiting strong growth rates fueled by the normalization of skincare routines among men across regions. OEMs can drive this category through customized body washes, moisturizers, and deodorants.
- The market for affordable cosmetic brands is expanding in developing nations. OEMs/ODMs provide brand localization support through affordable contract manufacturing and localized packaging/formulations.
Impact of COVID-19 on Cosmetic OEM, ODM Market Growth
The COVID-19 pandemic has significantly impacted the Cosmetic Oem/Odm Market Regional. During the initial phase of the pandemic in 2020, strict lockdowns and social distancing norms were imposed worldwide that led to closure of cosmetic manufacturing facilities and retail outlets. This disrupted supply chains and impacted demand for cosmetic products drastically. However, with time as restrictions were eased in 2021, the market started recovering gradually. Now, companies are focusing on implementing new health and safety protocols at workplaces and integrating digital technologies like virtual sampling and augmented reality in product designing and development processes to continue business operations smoothly.
The pandemic influenced consumer preferences and priorities as well. Emphasis shifted towards skincare and hygiene products over makeup items. Demand increased for natural and soothing products containing ingredients like antioxidants, vitamins and minerals that provide skincare benefits. OEMs and ODMs started developing such eco-friendly and immunity-boosting product ranges catering to evolving consumer needs. Though challenges remained, market players leveraged opportunities by launching new collection of products digitally and expanding e-commerce channels. The future growth outlook depends on stabilizing supply chains, fulfilling backlogs of orders and innovation in products, technologies and business models.
Geographical Regions with Highest Cosmetic OEM, ODM Market Value
The Asia Pacific region accounts for the largest share of the global cosmetic OEM, ODM market in terms of value. This is attributed to factors like growing middle class population, rising disposable incomes, increasing working women ratio and surging demand for premium beauty brands in major countries including China, Japan and South Korea. Another fast-growing region for the market is Western Europe, led by countries like Germany, United Kingdom, France and Italy. Mature markets in these regions, presence of global cosmetic firms and high brand consciousness and cosmetic per capita expenditure make Europe an important base. In terms of geographical regions with fastest growth, Latin America and Middle East & Africa are emerging as lucrative markets presenting major opportunities for ODM players in the forecast period. Rising affordability, acceptance of cosmetic products among different age groups and rising influence of western trends are fueling market expansion in developing economies.
Get more insights on Cosmetic Oem/Odm Market
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
Comments