The cosmetic OEM/ODM market deals in contract manufacturing of personal care and beauty products for renowned cosmetic brands worldwide. Cosmetic OEM/ODM helps brands to outsource product development and manufacturing tasks while focusing on their core competencies such as branding, marketing, and sales. This allows cosmetic brands to launch new products quickly without investing heavily in setting up manufacturing facilities. Factors such as growing demand for affordable cosmetics, rising cosmetic expenditures, and increasing cross-border trade have propelled the growth of the cosmetic OEM/ODM market.
The global Cosmetic OEM/ODM Market is estimated to be valued at US$ 59.9 Mn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rapidly expanding manufacturing capabilities of OEM/ODM players to cater to the surging demand from cosmetic brands represents a key growth opportunity. Many leading cosmetic OEM/ODM manufacturers are strategically expanding their production capacities by setting up new manufacturing plants worldwide. This helps them reduce delivery time and offer flexible manufacturing for private label and contract manufacturing orders from international beauty brands. The rising manufacturing capabilities of cosmetic OEM/ODM players are expected to foster market growth over the forecast period.
Porter's Analysis
Threat of new entrants: Low economies of scale and branding in the cosmetic OEM/ODM market pose barriers for new companies.
Bargaining power of buyers: Large cosmetic brands have higher negotiating power to demand competitive prices and custom services from OEM/ODM manufacturers.
Bargaining power of suppliers: The presence of several OEM/ODM manufacturers limits the individual supplier's power in the market.
Threat of new substitutes: Moderate threat as new customized formulation and packaging services from emerging players continually disrupt the market.
Competitive rivalry: Intense as the major players aggressively compete based on innovation, quality, and pricing to strengthen their market presence.
SWOT Analysis
Strengths: Expertise in formulation, manufacturing capabilities, and ability to produce customized cosmetic products per clients' requirements.
Weaknesses: Heavy reliance on major brand owners for orders and limited control over branding and marketing.
Opportunities: Growing demand for niche and customized cosmetic products offers new business opportunities.
Threats: Stiff competition and pricing pressures from local manufacturers in developing countries.
Key Takeaways
The Global Cosmetic OEM/ODM Market Size is expected to witness high growth over the forecast period driven bygrowing demand for customized and niche cosmetic products. The global Cosmetic OEM/ODM Market is estimated to be valued at US$ 59.9 Mn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the market and is expected to maintain its leadposition during the forecast period attributed to the presence of major OEM/ODM manufacturers in countries like China, South Korea, and India that cater to the rising cosmetic demand in both domestic and international markets.
Key players operating in the cosmetic OEM/ODM market are Intercos S.p.A., Kolmar Korea Co. Ltd., Cosmecca Korea Co., Cosmax Inc., Mana Products Inc., KBL cosmetics Ltd., Urist Cosmetics Incorporated, Fareva Holding SA, Milliona Cosmetics Co., Ltd., Skinlys, Maesa SAS, Tricorbraun Inc., Herrco Cosmetics Limited, Architectural Beauty, Allure Labs Inc., Case Mason Filling, Inc., Pardaco Trading Pte Ltd. The major playersare focusing on new product development, capacity expansion and mergers & acquisitions to strengthen their market share.
For More Insights, Read: https://www.newswirestats.com/cosmetic-oem-odm-market-demand-growth-and-regional-outlook-by-2030/
