In the last few years, market has witnessed a significant change in the lifestyle across the globe. This change has boosted the demand for the various cosmetics products across the globe on account of changing climatic conditions, increasing youth population focused on beauty and rising awareness among population about cosmetic products. These factors have collectively flourish the number of cosmetics ODM globally. With the rising awareness among consumers regarding the nature of ingredients, the market is witnessing a shift in the preference from chemical to natural and organic beauty care products, particularly in the U.S. and European countries. This rising demand for natural, herbal, and organic beauty products offers potential opportunities for manufacturers to innovate and develop new products as per consumer preferences.
Global cosmetics ODM market was valued at USD 6,373 million in 2018, growing at a CAGR of 12.8% during the forecast period of 2019–2026.
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For a better understanding of the global cosmetics ODM market, we have segmented the market by application.
By application, the global cosmetics ODM market is segmented into skincare, makeup, haircare, and others. The hair care segment is expected to hold the major market share followed by the skincare segment. Skincare segment is expected to hold 28.51% share of the global cosmetics ODM market in 2025. This can be attributed to the increasing demand for skincare cosmetics products and the leaning trend towards skin protection using cosmetics. Increasing environmental effect on skin as a result of rising saturation of CO2 in the atmosphere and growing awareness regarding ill effects of UV rays on bare skin has boosted the skincare segment growth. Furthermore, growth in the number of companies engaged in ODM processes for skincare cosmetics in Asia Pacific, especially in China, Japan, and India has driven the market growth in the last few years.
Global Cosmetics ODM market by Americas, Asia Pacific, Europe, and the Middle East and Africa.
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North America is growing at a CAGR of 12.1% over the forecast period 2019–2026. U.S. is leading the North America cosmetics ODM market backed by rising demand for skin care and hair care cosmetics products including sunscreen lotion, shampoo, oil, and moisturizers as a result of changing the climate. Canada is witnessing high usage of haircare and skincare cosmetic products owing to extreme climatic conditions affecting skin and hair health. Europe is capturing the significant market share of cosmetics ODM market. Increased demand for cosmetic products including hair care, skin care, oral care, and others is majorly attributed to adversely affecting climatic conditions, leaning trend towards clubbing, and modernized lifestyle. According to the Cosmetic, Toiletry and Perfumery Association (CTPA), in 2016, Europe has traded cosmetics worth more than USD 35.1 billion. Furthermore, Germany and U.K are the major contributors to the Europe cosmetics ODM market on account of the strong presence of major cosmetics manufacturers including MAC and others, which depend on third-party manufacturers or ODM’s for cosmetic production.
Middle East and Africa is offering lucrative opportunities for the market. Growing awareness regarding skincare, haircare, and makeup products in Africa, especially in South Africa has influenced the overall demand for cosmetics in the region. Travel retail market for cosmetics in the Middle East & Africa is on the verge of expansion due to increased tourism activities. Hot & humid climatic conditions have led to the increased demand and use of skin care and hair care cosmetic products, which has spurred the number of cosmetics ODM in the region. Moreover, rapid urbanization in the Middle East, especially in Dubai and Abu Dhabi has significantly flourished market growth.
Some of the prominent players in the Cosmetics ODM Market are Cosmax, Intercos, Kolmar, Nihon Kolmar Co., Ltd, Cosmo beauty, Nox Bellow Cosmetics, Ancorotti Cosmetics, COSMECCA, BioTruly Company, Toyo Beauty, Easycare Intelligence Tech, Homar, ANTE cosmetics, Francia Cosmetics, Life-Beauty Cosmetics.