Cosmetics OEM and ODM Market Size, Share, Growth, and Industry Analysis, By Type (OEM,ODM), By Application (Skincare,Makeup,Haircare,Others), Regional Insights and Forecast to 2033

Cosmetics OEM and ODM Market Overview

The Cosmetics OEM and ODM Market size was valued at USD 33951.8 million in 2024 and is expected to reach USD 56206.24 million by 2033, growing at a CAGR of 5.7% from 2025 to 2033.

The Cosmetics OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) market plays a critical role in the global beauty and personal care industry, offering scalable production solutions for skincare, makeup, haircare, and fragrance brands. As of 2024, over 4,000 companies are actively involved in cosmetics contract manufacturing globally.

In Asia-Pacific alone, more than 2,500 OEM and ODM companies are operational, accounting for over 60% of global production. South Korea, Japan, and China serve as major hubs due to their advanced R&D capabilities and efficient supply chains. Kolmar Korea produces over 1.5 billion cosmetic units annually, while Intercos operates 15 manufacturing plants worldwide. Demand from indie brands, which numbered over 7,000 globally in 2023, has fueled significant growth in outsourced production. Furthermore, skincare dominates the outsourced cosmetics segment, with over 48% of ODM and OEM contracts relating to skincare formulations.

The increasing emphasis on clean beauty and sustainability has led more than 70% of OEM/ODM manufacturers to implement eco-friendly practices, including biodegradable packaging and green chemistry. Brands are leveraging ODM solutions to reduce development cycles by 30-40% and lower production costs by up to 25%, making outsourcing a strategic move in competitive beauty markets.

Key Findings

DRIVER: Rising demand for rapid product development and brand differentiation via outsourced cosmetic solutions.

COUNTRY/REGION: South Korea leads with over 1,200 OEM/ODM companies and accounts for 22% of global outsourced cosmetic production.

SEGMENT: Skincare is the leading segment, accounting for over 48% of all OEM and ODM cosmetic manufacturing contracts worldwide.

Cosmetics OEM and ODM Market Trends

One of the most prominent trends in the Cosmetics OEM and ODM market is the rise of indie beauty brands and influencer-backed product lines. In 2023, more than 3,800 new beauty brands were launched globally, with over 65% relying on OEM and ODM partners to scale their production. The emergence of clean beauty and vegan cosmetics has driven a shift in manufacturing practices. Approximately 72% of manufacturers now offer formulations free of parabens, sulfates, and animal-derived ingredients. ODM service providers in South Korea and Japan have launched over 2,000 vegan-certified products since 2022. In addition, digitalization has transformed the R&D process—Intercos uses AI-driven platforms to develop over 250 formulations annually, reducing turnaround time by 40%. Customization and white-labeling are increasingly prevalent. Nearly 55% of ODM manufacturers offer 3D-printed packaging customization services to cater to boutique and luxury cosmetic brands. Moreover, hybrid skincare-makeup products have gained momentum. In 2024, over 1,400 new SKUs combining skincare benefits with makeup utility were introduced through OEM/ODM collaborations. Anti-aging remains a strong R&D focus, with more than 1,600 new anti-aging formulations developed through ODM channels in 2023. Additionally, sustainability is evolving from a niche requirement to a standard—65% of OEM partners now use biodegradable or recycled materials, and carbon-neutral manufacturing was adopted by 18% of ODM companies in 2023.

Cosmetics OEM and ODM Market Dynamics

The dynamics of the Cosmetics OEM and ODM market are shaped by the increasing need for speed, cost-efficiency, sustainability, and innovation across the global beauty sector. As more than 7,000 new beauty brands emerged globally in 2023, the need for agile and scalable production models has grown significantly. OEM and ODM services have become the backbone of cosmetic product development, enabling brands to bring products to market 40% faster while reducing operational overhead by up to 25%.

DRIVER

Expanding Demand for Quick-to-Market Cosmetic Products

The primary driver of the Cosmetics OEM and ODM market is the rising need for brands to launch new products rapidly and efficiently. In 2023, the average product development cycle through traditional in-house methods was 18-24 months, while OEM/ODM partnerships reduced this time to 8-12 months. With over 30% of beauty brands launching new products every quarter, the speed-to-market advantage offered by OEM and ODM manufacturers is critical. OEM providers enable flexible manufacturing volumes, helping emerging brands scale from 5,000 to 500,000 units per SKU without investing in infrastructure.

RESTRAINT

Quality Control and Intellectual Property Risks

Despite growth, several restraints challenge the Cosmetics OEM and ODM market, notably concerning quality consistency and IP protection. In 2023, over 450 product recalls were linked to outsourced manufacturing errors, including contamination, mislabeling, and allergen misidentification. Approximately 8% of brands reported disputes related to formulation ownership, particularly in ODM contracts where R&D is supplier-led. Lack of regulatory harmonization between regions like the EU, USA, and APAC complicates compliance, increasing the risk of rejected batches and fines.

OPPORTUNITY

Rise of Customized and Functional Cosmetics

A major opportunity lies in the expansion of personalized and functional cosmetics. Over 2.5 million consumers participated in personalized skincare assessments through OEM-partnered platforms in 2023. Demand for formulations tailored to individual skin types, climates, and ethnic profiles is increasing, leading OEM/ODM manufacturers to invest in advanced ingredient profiling. ODM firms like COSMAX have added more than 800 new active ingredients to their formulation libraries between 2022 and 2024. Functional cosmetics targeting skin hydration, pigmentation, and hormonal acne saw a 27% increase in outsourced manufacturing orders.

CHALLENGE

Rising Costs of Sustainable Raw Materials and Packaging

One of the key challenges is the rising cost of sustainable and natural raw materials. The price of organic shea butter increased by 22% from 2022 to 2024, and biodegradable packaging materials have seen a 30% surge in cost due to limited suppliers. These rising costs impact OEM/ODM profitability and force price renegotiations with client brands. Additionally, talent shortages in cosmetic chemistry and sustainable design delay R&D timelines. Over 40% of ODM companies reported delays in meeting launch schedules in 2023 due to bottlenecks in sourcing.

Cosmetics OEM and ODM Market Segmentation

The Cosmetics OEM and ODM market is segmented by type (OEM, ODM) and by application (Skincare, Makeup, Haircare, Others). Each type and application holds distinct advantages, market penetration, and growth trajectories across geographies.

By Type

• OEM: OEM services remain the dominant type, accounting for approximately 58% of all outsourced cosmetic manufacturing contracts in 2023. Brands using OEM services typically supply the formulation and branding elements while outsourcing only the manufacturing process. This is especially prevalent in the U.S. and European regions, where over 1,200 companies rely on OEMs to produce standardized SKUs in compliance with regional regulatory frameworks. OEM manufacturing volumes range from 10,000 to over 1 million units per product line.
• ODM: ODM accounts for 42% of the market and continues to grow rapidly. ODM partners provide end-to-end services, including formulation, design, testing, and packaging. In Asia-Pacific, more than 70% of new beauty startups use ODM services. ODM partnerships led to the creation of over 3,200 new beauty formulations globally in 2023. The flexibility to choose from over 10,000 ready-to-go formulations makes ODM attractive for indie and luxury brands alike.

By Application

• Skincare: Skincare dominates with a 48% market share in the OEM and ODM space. In 2023, over 2.4 billion units of skincare products were manufactured through contract partners. Top categories include anti-aging creams, moisturizers, serums, and sunscreens. The rise in demand for multifunctional skincare—such as SPF-infused moisturizers and probiotic serums—has driven new formulation developments.
• Makeup: Makeup represents 28% of outsourced production. In 2023, more than 1.3 billion units of lipsticks, eyeshadows, and foundations were produced through OEM/ODM contracts. Hybrid products like foundation-serum combos saw a 33% increase in demand.
• Haircare: Haircare constitutes 15% of the market, with shampoos, conditioners, and scalp treatments gaining traction. Over 400 million units were manufactured through OEM/ODM networks in 2023.
• Others: The remaining 9% includes fragrances, body care, and oral care. Fragrance demand is growing, with over 100 new fragrance formulations developed through ODM channels in 2023 alone.

Regional Outlook for the Cosmetics OEM and ODM Market

The regional landscape of the Cosmetics OEM and ODM market is marked by distinctive strengths and growth trends across key territories. North America, driven by the United States, has over 600 OEM manufacturers, primarily focused on FDA-compliant and cruelty-free cosmetics. These facilities emphasize transparency and customization, particularly in clean-label products, which represented 36% of ODM contracts in 2023. Canada has also seen a rise in boutique brands using local OEM services.

• North America

In North America, the market is characterized by a strong preference for OEM services, particularly in the United States and Canada. Over 600 OEM manufacturers operate in the U.S., with a focus on FDA compliance and clean-label formulations. ODM services are emerging, especially in vegan and cruelty-free products, which accounted for 36% of ODM contracts in 2023.

• Europe

Europe remains a hub for premium cosmetic manufacturing, particularly in France, Italy, and Germany. More than 800 companies operate across these countries, with over 60% offering GMP-certified facilities. European OEM and ODM firms developed 1,200 new formulations in 2023, largely centered around anti-aging and dermocosmetic segments. Sustainability is a key driver, with 70% of European manufacturers using recyclable or refillable packaging.

• Asia-Pacific

Asia-Pacific leads the global market with the highest volume of OEM and ODM operations. In 2023, over 2,500 OEM/ODM companies were active in countries like South Korea, China, and Japan. South Korea alone accounted for over 1.8 billion cosmetic units produced via ODM services. High R&D intensity and the availability of cost-effective manufacturing have positioned the region as a global supplier.

• Middle East & Africa

The Middle East & Africa market is nascent but expanding. The UAE and South Africa are emerging hubs, with over 120 OEM/ODM operations supporting halal-certified and herbal cosmetic production. In 2023, more than 300 new SKUs were launched via regional OEM partnerships targeting ethnic and desert-climate skincare.

List of Top Cosmetics OEM and ODM Companies

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

COSMAX: COSMAX is one of the largest ODM providers globally, producing over 2 billion cosmetic units annually. The company operates multiple manufacturing plants across South Korea, China, and the U.S., with over 1,200 patented formulations and more than 300 R&D staff.

Intercos: Intercos serves over 550 brands worldwide and manages 15 global production sites. It develops more than 1,200 new formulas per year and specializes in color cosmetics, skincare, and hybrid formulations. In 2023, it accounted for 18% of the ODM cosmetic market share globally.

Investment Analysis and Opportunities

The Cosmetics OEM and ODM market presents significant investment potential due to rapid innovation, low entry barriers for brands, and strong demand for outsourced production. In 2023, over 180 private equity and venture capital investments were made into cosmetics OEM/ODM companies, totaling more than 2,000 deals globally. Asia-Pacific attracted the highest investment interest, accounting for 52% of total deals, largely driven by South Korean and Chinese firms. Kolmar Korea alone received over 25 international investment inquiries during 2023 for factory expansion and new R&D centers. Investments in smart manufacturing technologies are becoming a focal point. More than 60 OEM and ODM facilities globally are now equipped with IoT-enabled production lines, AI-based quality inspection systems, and automated filling machines. These upgrades reduced defect rates by 35% and improved production efficiency by 28%. Cosmetic brands are also investing in exclusive manufacturing partnerships. In 2024, 45% of mid-sized skincare brands entered into long-term contracts with ODM companies to secure supply chain resilience and faster go-to-market timelines. In Europe and North America, sustainability-focused investments dominate. Approximately $620 million was allocated in 2023 for implementing green manufacturing in cosmetics OEM plants. Solar-powered plants, water recycling units, and biodegradable raw material sourcing are key initiatives funded. Meanwhile, government support is boosting investment in halal and herbal cosmetic OEM facilities in the Middle East. The UAE government provided subsidies to over 15 startups collaborating with OEM partners on natural product lines in 2023. Product customization technologies such as AI-based skin diagnostics are gaining investor attention. ODM companies developing software that connects skin analysis directly to product formulation are receiving higher valuations. ODM startups in Japan and Singapore received an average valuation of $15 million in 2023 for AI-integrated formulation capabilities. The global surge in dermocosmetics and therapeutic beauty products also opens opportunities for clinical trial integration within OEM/ODM structures. About 32 companies added dermatological testing labs to their facilities in 2024.

New Product Development

The Cosmetics OEM and ODM market has witnessed a surge in new product development initiatives driven by demand for innovation and personalization. In 2023 alone, over 5,600 new SKUs were launched globally through OEM and ODM partnerships. Skincare accounted for 51% of these innovations, particularly in anti-pollution serums, probiotic moisturizers, and retinol-infused eye creams. ODM laboratories introduced over 2,400 new active ingredient combinations to address evolving consumer needs. Clean beauty remains a dominant theme. Over 1,700 new paraben-free and sulfate-free products were formulated by ODM firms in 2023. Vegan and cruelty-free innovations are growing, with 1,200 new products certified as vegan through collaborations with third-party auditors. ODM companies in South Korea and Japan have taken the lead, developing formulations that comply with over 30 regional and global safety standards. Technology-based innovation is also thriving. AI-assisted custom skincare lines, where consumers receive tailored products based on skin scans, saw more than 400 launches via ODM services in 2023. ODM labs use algorithmic tools to select ingredients from a database of over 10,000 tested substances. Additionally, multifunctional products that combine cosmetic appeal with therapeutic benefit are in focus. In 2024, more than 600 new foundations with SPF and antioxidant properties were introduced through OEM channels. Sustainable packaging innovation has also seen a leap forward. Approximately 750 new eco-packaging options were launched by ODM firms, including refillable lipstick cartridges, compostable serum sachets, and recycled glass jars. OEMs are integrating waterless formulation technology to reduce packaging needs, with over 80 new waterless skincare products produced in 2023. Furthermore, fragrance innovation is expanding, with 320 new natural essential oil-based perfumes developed using cold-extraction methods to maintain purity.

Five Recent Developments

• In 2023, COSMAX launched over 120 new vegan skincare formulations tailored for the European market.
• Intercos opened a new R&D center in Shanghai in March 2024, capable of creating 400 unique formulations annually.
• Kolmar Korea integrated AI-based predictive analysis in its ODM lab, reducing formulation development time by 35% in 2023.
• Toyo Beauty introduced biodegradable makeup packaging lines and distributed over 25 million units by Q4 2023.
• Chromavis developed 80 new hybrid makeup products combining anti-aging skincare ingredients with high-performance color pigments in 2024.

Report Coverage of Cosmetics OEM and ODM Market

This comprehensive report covers the full scope of the global Cosmetics OEM and ODM market, analyzing its structure, dynamics, regional performance, segmentation, company profiles, and innovation landscape. The report includes detailed insights from over 60 countries, mapping out manufacturing clusters, client brand ecosystems, and contract volumes. It evaluates more than 3,000 OEM and ODM firms globally, with particular focus on their production capacity, technological capabilities, and R&D investment strategies. Coverage spans across all product applications, including skincare, makeup, haircare, fragrance, and emerging categories like hybrid cosmetics and dermocosmetics. The report provides a breakdown of formulation trends, ingredient sourcing, and packaging innovation, capturing over 5,600 new products developed in 2023-2024. Emphasis is placed on clean label, cruelty-free, and personalized products which have become central to consumer demand and brand positioning. The analysis tracks developments in regulatory compliance across North America, Europe, Asia-Pacific, and the Middle East & Africa. It evaluates the impact of differing regulatory environments, including the U.S. FDA, EU Cosmetics Regulation, and ASEAN Cosmetic Directive, on manufacturing timelines and product approvals. OEM and ODM performance metrics such as production yield, defect rate, and formulation library size are also covered.

Frequently Asked Questions