The Korean cosmetic OEM and ODM industry is rapidly growing as value-conscious consumers shifted their focus to high quality products with good brand image. Korean private label cosmetic manufacturers are known for using clean manufacturing processes and producing the best skin care, beauty, and body & hair products in the world. They are also using a range of eco-friendly materials and reducing the use of plastic packaging and shipping boxes.
The Ministry of Food and Drug Safety oversees the cosmetic industry in Korea, including functional cosmetics that help with whitening, anti-wrinkle, sunscreen, tanning, hair colorants, and more. The Ministry reviews these for pre-market approval before allowing them to be manufactured and sold in the country.
In the K-beauty world, celebrity endorsements are a major selling point for brands. Celebrities are paid a lot of money to promote products on their social media, which gives them a huge following among Koreans.
K-beauty companies are also trying to customize their products based on consumer needs. For example, AMOREPACIFIC developed an app that analyzes a consumer’s facial dimensions and generates a customized skincare product. The company then prints the custom hydrogel face mask on demand.
COSMAX is expanding its global footprint with manufacturing facilities in the USA and China. In 2017, the company acquired a US-based colour cosmetics ODM manufacturer Nuworld for $50 million, which will strengthen its manufacturing ability on makeup (which has been a weakness of some Korean ODMs). The acquisition will also give COSMAX access to more customers in the United States and beyond. korean cosmetic manufacturer