Cosmetics OEM/ODM Market: By Type (OEM, ODM), By Nature (Natural/Organic, Synthetic), By Application (Skincare, Makeup, Haircare, and Others), By Distribution Channel (Hypermarkets, Specialty Stores, Super Stores, and Online Stores), and Geography

 

Cosmetics OEM/ODM Market was valued at USD 56,345.5 million in 2022 and is expected to grow at a 6.7% CAGR from 2023 to 2029. The Original Equipment Manufacturer owns the formulation and creation of a particular product which is referred to as private labels. Original Design Manufacturers create the designs and specifications of products sold by cosmetic manufacturers. The increasing awareness and concern of people in skincare and other product safety are expected to drive the growth of the cosmetics OEM/ODM market. For instance, in 2019, Johnson & Johnson announced that it would stop the selling of talc-based baby powders in the North America region owing to concern about the safety of its products. In addition, the growing disposable income, and increasing preference of people for organic and natural cosmetic products in regions like the United States, and Europe are expected to boost the growth of the cosmetics OEM/ODM market over the forecast period. Moreover, the growing digitalization, and increasing usage of e-commerce platforms for buying and selling products is expected to propel the market growth over the forecast period. However, the strict regulations about the usage of chemical-based personal care and cosmetic products owing to their side effects are expected to hinder the growth of the cosmetics OEM/ODM market growth over the forecast years. For instance, European Union has banned more than 1,300 chemical-based ingredients in cosmetic products. The increasing preference for natural and organic personal care products is expected to provide opportunities to the market key players and manufacturers in the forecast period. for instance, more than 55% of women in the United States are seen to purchase natural vacuum skin packaging care products rather than chemical-based cosmetics. Geographically, the North America region held the major market share in 2022 and is expected to dominate the global cosmetics OEM/ODM market in the forecasted years.

Cosmetics OEM/ODM Market Recent Market Key Developments:

In 2022, Pat McGrath released their first skin-care product, Divine Skin, which is intended to boost the results of one’s skincare routine, while Fresh Beauty has released a new facial mist in its bestselling rose recipe.

In March 2019, KBL Cosmetics launched a new innovative foldable triangle eye shadow product.