Global Cosmetics OEM/ODM Market
Global Cosmetics OEM/ODM Market By Type, By Application, By Geographic Scope And Forecast
According to Verified Market Research, The Global Cosmetics OEM/ODM Market was valued at USD 49.25 Billion in 2018 and is projected to reach USD 72.27 Billion by 2026, growing at a CAGR of 5.01% from 2019 to 2026.
In the cosmetic industry, OEM literally means “Original Equipment Manufacturer”, which means the OEM owns the creation and formulation of a particular product. It is also terms are ‘private label’ where the OEM is the original manufacturer of the given product. Alternatively, ODM (Original Design Manufacturing) companies create the overall design and specifications of products that are sold by the cosmetic companies under their names. The companies that have limited resources in building and creating products, ODM companies turn their concepts and formulation into concrete and tangible cosmetic products. In this approach, the ODM companies take care of the R&D, product concepts, testing, and manufacturing. In a nutshell, a cosmetic OEM is the provider of formulations and specs, while the ODM’s concept is the reverse of this.
The key market drivers for the growth of the Global Cosmetics OEM/ODM market are a considerable rise in disposable incomes over the past decade, growth in global economies, changing lifestyles and rising demands of skin and sun care products due to varying climatic. The growing shifting preference of the consumers towards more natural and organic beauty products, particularly in the US and the European countries is anticipated to foster the growth of the cosmetics OEM/ODM market. Rising demand for natural, herbal and organic beauty products creates potential opportunities for manufacturers to innovate and develop new products in accordance with consumer preferences.
At present, the OEM and ODM companies in the market are focusing on developing new products and innovating on the use of different ingredients in cosmetic products. This is been done in order to sustain and maintain its market position, by adopting various strategies. Product launch, acquisition, expansion, and agreement are few of the prominent strategies adopted by the market players which are contributing to the growth of the market during the forecast period.
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