Cosmetics OEM and ODM Market Size, Share, Growth, and Industry Analysis, By Types (OEM, ODM), By Applications Covered (Skincare, Makeup, Haircare, Other) and Regional Insights and Forecast to 2033

Cosmetics OEM and ODM Market Size

The Global Cosmetics OEM and ODM Market was valued at USD 69,376.65 million in 2024 and is projected to reach USD 73,240.93 million in 2025, expanding further to USD 112,999.88 million by 2033. The market is expected to grow at a steady CAGR of 5.57% during the forecast period from 2025 to 2033, driven by increasing demand for personalized beauty products, rapid product innovation, and the growing trend of outsourcing manufacturing among global cosmetic brands.

The U.S. Cosmetics OEM and ODM market is growing steadily, driven by rising consumer demand for customized skincare and beauty products, increased private label brand expansion, and innovation in clean, organic, and cruelty-free formulations.

Key Findings

• Market Size: Valued at 73,240.93M in 2025, expected to reach 112,999.88M by 2033, exhibiting a CAGR of 5.57%.
• Growth Drivers: Rising demand for vegan cosmetics increased by 42%, while preference for contract-based skincare surged by 38% globally.
• Trends: ODM customization rose by 35%, eco-friendly packaging adoption up 47%, and hybrid cosmetics formulations increased by 28% since 2023.
• Key Players: Cosmax, Kolmar Korea, Intercos, Bawei, Toyo Beauty
• Regional Insights: Asia-Pacific holds 39% share, North America 22%, Europe 26%, and Middle East & Africa 13% in 2024 regional distribution.
• Challenges: Raw material cost inflation impacted 33% of firms; regulatory hurdles delayed 27% of launches in North America and Europe.
• Industry Impact: 36% of brands outsourced entire lines; 31% of DTC brands now rely on OEM/ODM for clean beauty product development.
• Recent Developments: Over 41% of new products in 2023–2024 integrated biotech ingredients; ODM firms launched 37% more custom formulations YOY.

The global Cosmetics OEM and ODM market is evolving rapidly with a focus on formulation innovation, clean beauty standards, and private label expansion. OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) models allow brands to scale efficiently by outsourcing product development and manufacturing. With rising demand for skincare, haircare, and color cosmetics across Asia-Pacific, North America, and Europe, OEM and ODM service providers are increasingly adopting flexible production models. These services enable faster time-to-market, regulatory compliance, and cost-effective product launches. The cosmetics OEM and ODM market plays a pivotal role in supporting emerging brands and established companies alike with end-to-end cosmetic solutions.

Cosmetics OEM and ODM Market Trends

The Cosmetics OEM and ODM market is witnessing notable transformations driven by demand for customized formulations, eco-friendly packaging, and faster go-to-market strategies. Approximately 43% of beauty startups rely on OEM/ODM services to launch their first product line. The growing shift towards K-beauty and J-beauty has resulted in a 34% increase in inquiries for ODM services across South Korea and Japan. Meanwhile, 39% of U.S. indie brands report using ODM partners to meet rapid launch timelines. Clean beauty formulations now account for 29% of new product requests in Europe, reflecting consumer awareness of ingredient transparency. In addition, over 37% of ODM manufacturers have invested in AI-driven testing platforms to enhance product efficacy evaluations. Companies offering hybrid OEM/ODM services report 33% higher client retention due to customization flexibility. Skincare remains the largest category, contributing to 46% of total OEM/ODM cosmetic production globally, followed by makeup at 28%, and haircare at 17%. Sustainable packaging requests have grown by 41%, with rising demand for PCR (post-consumer resin) plastic and biodegradable materials. These trends highlight the role of OEM and ODM partners as innovation accelerators in the dynamic global beauty industry.

Cosmetics OEM and ODM Market Dynamics

OPPORTUNITY

Expansion of Clean Beauty and Vegan Cosmetics Globally

The shift towards clean, sustainable, and vegan beauty offers significant opportunity for the Cosmetics OEM and ODM market. Roughly 40% of ODM manufacturers have developed paraben-free, cruelty-free, and non-toxic product portfolios to cater to conscious consumers. In the U.S., 35% of millennial buyers seek clean-certified beauty, pushing brands to collaborate with OEMs for safe formulations. Europe’s growing ban on microplastics in cosmetics has prompted a 29% rise in eco-friendly ODM solutions. Additionally, Southeast Asia’s halal-certified cosmetic segment is expanding, creating new demand for religiously compliant OEM/ODM manufacturing, especially in Malaysia and Indonesia.

DRIVERS

Increasing Demand for Brand Differentiation and Faster Launch Cycles

The Cosmetics OEM and ODM market is driven by growing brand pressure to differentiate in a competitive landscape. Around 48% of new cosmetic startups opt for ODM models to reduce development time while still offering unique formulations. The rise in influencer-led beauty lines has created a surge in OEM partnerships, with over 36% of Instagram beauty brands outsourcing formulation and manufacturing. ODM providers offering white-label products with customizable packaging solutions have seen a 27% increase in client onboarding since 2022. Moreover, regulatory complexity across regions encourages brands to rely on OEMs for compliance and product registration support.

RESTRAINT

" Concerns Over Intellectual Property Protection and Branding Control"

One of the key restraints in the Cosmetics OEM and ODM market is the concern over intellectual property (IP) protection and limited control over product development. About 31% of brands surveyed cite lack of visibility in the R&D process as a challenge when engaging with ODM partners. Some cosmetic companies face quality variation issues due to over-reliance on a single OEM source. A further 26% highlight that formulation duplication risks are higher with some smaller ODM suppliers. As a result, premium cosmetic brands tend to prefer in-house R&D while outsourcing only bulk manufacturing. This cautious approach reduces speed but increases proprietary control.

OPPORTUNITY:

CHALLENGE

"Rising Raw Material Costs and Global Supply Chain Delays"

A major challenge in the Cosmetics OEM and ODM market is the rise in raw material costs and persistent global supply chain bottlenecks. Reports show that over 38% of OEM producers experienced delivery delays in 2023 due to shipping disruptions and geopolitical instability. Ingredient shortages—particularly in natural extracts and specialty actives—have resulted in a 21% increase in formulation lead times. OEMs in South Korea and China are particularly impacted, where dependence on imported actives is high. Rising labor costs and regulatory tariffs further strain profit margins for ODM manufacturers, especially those operating in cross-border production zones.

Segmentation Analysis

The Cosmetics OEM and ODM market is segmented based on type and application to understand the diverse business models and product demand trends in the industry. By type, the market is divided into OEM and ODM services, each offering tailored advantages. By application, the segmentation spans skincare, makeup, haircare, and others, highlighting the versatility of outsourced cosmetic production across personal care categories. These segments allow cosmetic companies to focus on branding, while manufacturing, formulation, and packaging are handled by experienced third-party specialists. Understanding these segments is essential for identifying growth areas and operational trends in the evolving global beauty supply chain.

By Type

• OEM (Original Equipment Manufacturer): OEM services account for approximately 55% of the global cosmetics outsourcing market. These services are favored by established brands looking to maintain proprietary control over product formulation while outsourcing bulk manufacturing. Around 43% of North American brands use OEM partners to handle scale production while maintaining their in-house R&D. OEMs primarily support packaging, assembly, and regulatory documentation for rapid rollouts, particularly in skincare and fragrance lines. These partnerships are ideal for legacy companies with an existing customer base and product portfolio that require consistent quality and compliance across multiple markets.
• ODM (Original Design Manufacturer): ODM accounts for the remaining 45% and is growing in popularity due to speed-to-market advantages and built-in R&D expertise. Roughly 61% of new beauty brands launched between 2021 and 2024 relied on ODM to bring their first products to market. ODM providers offer full product design, formulation, testing, and packaging. The Asia-Pacific region leads in ODM service provision, with countries like South Korea, Japan, and China dominating the segment. ODM is especially valuable for startups, influencer-led cosmetic brands, and regional players seeking innovative, cost-effective product development with minimal internal resources.

By Application

• Skincare: Skincare is the largest application segment, contributing over 48% of the total Cosmetics OEM and ODM market. The category includes serums, creams, lotions, and cleansers. Around 67% of Asian ODM suppliers focus primarily on skincare, leveraging regional demand and access to botanical ingredients. Brands are increasingly outsourcing anti-aging and brightening products, with clean beauty compliance playing a major role in supplier selection.
• Makeup: Makeup represents about 25% of the market. This includes foundation, lipsticks, eyeshadows, and compact powders. ODM providers have seen a 34% increase in requests for long-wear and transfer-proof formulations. Brands in the U.S. and Latin America increasingly turn to ODM for trend-based seasonal launches to reduce inventory risks.
• Haircare: Haircare comprises roughly 18% of the market, with strong demand for sulfate-free, vegan, and scalp-care products. About 39% of haircare ODM products launched in 2023 were positioned for clean beauty segments. OEMs also play a role in large-volume haircare production for salon chains and online retailers.
• Other: This segment includes body care, personal hygiene, fragrances, and specialty products like men’s grooming and baby care. OEM and ODM partners have witnessed a 26% growth in demand from boutique wellness and spa brands seeking bespoke product ranges in the last two years.

Regional Outlook

The global Cosmetics OEM and ODM market shows strong regional diversity in terms of contract manufacturing demand, supplier capabilities, and brand expansion strategies. Asia-Pacific leads the global landscape in terms of supplier base and volume contracts, while North America and Europe remain innovation-driven markets. The demand for clean-label, cruelty-free, and sustainable cosmetic products continues to shape regional production preferences and compliance standards. Regulatory policies, local sourcing of raw materials, and evolving consumer preferences are major regional growth determinants in this market.

North America

North America holds a significant share of the Cosmetics OEM and ODM market, contributing nearly 22% of global revenue in 2024. The U.S. accounts for approximately 88% of the North American demand, followed by Canada. Brands in the region favor OEM partnerships for maintaining proprietary formulations. A large percentage of indie beauty brands—over 63%—opt for ODM suppliers to expedite product launches. Clean beauty standards and regulatory compliance are a priority. U.S.-based firms also increasingly collaborate with South Korean and Japanese ODM partners for K-beauty inspired skincare lines.

Europe

Europe accounts for around 26% of the Cosmetics OEM and ODM market, driven by demand from France, Germany, Italy, and the UK. Over 41% of European skincare startups rely on third-party manufacturers for end-to-end product development. The region has a mature cosmetic regulation system (EU Cosmetic Regulation EC 1223/2009), making compliance a core capability of OEM/ODM partners. Localized production is prioritized to meet sustainability goals. France remains the largest consumer of OEM-based cosmetics, while Germany and the UK are leading adopters of ODM services in organic cosmetics.

Asia-Pacific

Asia-Pacific dominates the global Cosmetics OEM and ODM market with more than 39% of total market share in 2024. South Korea and China serve as the manufacturing hubs, contributing over 67% of regional production. South Korean ODMs such as Cosmax and Kolmar Korea lead with vertically integrated capabilities. Japanese companies focus on high-precision skincare products. India and Indonesia are emerging as strong contract manufacturing bases for haircare and herbal cosmetics. Local beauty startups and global beauty giants alike leverage Asia-Pacific OEM/ODM providers for affordability, R&D, and rapid innovation cycles.

Middle East & Africa

The Middle East & Africa region contributes about 13% to the global Cosmetics OEM and ODM market. Countries like the UAE and Saudi Arabia are focusing on premium personal care product development through outsourced manufacturing. Around 46% of regional demand stems from private label brands and regional distributors. African countries such as South Africa, Kenya, and Nigeria are witnessing increasing investments in local cosmetic production, with herbal and natural products gaining traction. ODM suppliers are entering strategic partnerships with local brands to serve halal-certified and ethnic-specific cosmetic needs.

List of Key Cosmetics OEM and ODM Market Companies Profiled

Investment Analysis and Opportunities

The Cosmetics OEM and ODM market has witnessed significant capital inflows in the last two years. Approximately 41% of the global beauty venture capital funding in 2023 was directed towards ODM/OEM suppliers, particularly in South Korea and China. Strategic partnerships between ODMs and e-commerce-led beauty brands are becoming increasingly common, especially in emerging economies. Investors are targeting startups that integrate AI-based product formulation and digital twin technologies into the R&D process. Additionally, over 34% of manufacturing facility investments are directed toward sustainable packaging solutions and renewable energy integration. Multinational corporations are expanding joint ventures in Southeast Asia and Latin America to reduce lead time and cost, while simultaneously meeting the demand for localized cosmetics production.

New Products Development

Product innovation is a top priority in the Cosmetics OEM and ODM market. More than 47% of ODM companies introduced advanced clean beauty formulations in 2023, focusing on ingredients like niacinamide, peptides, and plant-based collagen. Korean ODM leaders launched hybrid skincare-makeup products, while Japanese OEMs focused on anti-pollution formulations. Around 32% of newly launched products integrated microbiome-balancing properties and 26% focused on hybrid beauty (cosmetics + skincare). Haircare saw a surge in vegan shampoo and conditioner offerings with scalp therapy benefits. ODM partners also rolled out white-label AI-driven customization solutions for on-demand formulation services, allowing brands to introduce personalized lines with low MOQs.

Recent Developments by Manufacturers

• Kolmar Korea launched an AI-based formulation system to reduce product development timelines by 38% in 2023.
• Cosmax introduced a microbiome-enhancing serum line developed via their in-house biotech division in Q4 2023.
• Intercos opened a new R&D facility in Milan focused on high-performance makeup for the EU market in 2024.
• Cosmecca partnered with multiple indie brands in the U.S. to co-develop cruelty-free and vegan lip care products.
• Bawei unveiled a recyclable packaging innovation lab in 2024 targeting the premium clean beauty segment.

Report Coverage

This report on the Cosmetics OEM and ODM Market covers a holistic overview of global market trends, regional segmentation, leading players, and growth dynamics. The report provides detailed insights into market drivers, restraints, challenges, and opportunities, supported by historical data and forward-looking forecasts. It includes segmentation by type (OEM and ODM), and by application (skincare, makeup, haircare, and others), along with detailed regional insights from North America, Europe, Asia-Pacific, and the Middle East & Africa. The report profiles major manufacturers and includes updates on recent product developments, investment initiatives, and market expansion strategies. Also included are market share statistics, value chain analysis, supplier landscape, and a breakdown of innovation trends shaping product design and brand partnership models. The study is designed to support decision-makers across cosmetics and personal care businesses, private-label brands, contract manufacturers, and investors looking to enter or expand in the global cosmetic manufacturing market.