Major Korean cosmetics original design manufacturers (ODMs) have achieved combined sales exceeding 6 trillion won, driven by robust overseas demand. Companies including Kolmar Korea, Cosmax, Cosmecca Korea, and Cien International recorded a total of 6.0503 trillion won in sales last year, marking an 11.5% year-over-year increase.
Record-Breaking Performance Across the Board
The four firms collectively posted operating profits of 541.1 billion won, up 18% from the previous year. This surge underscores their growing dominance in international markets amid a saturated domestic landscape.
Kolmar Korea Leads with Strong Gains
Kolmar Korea reported sales of 2.7224 trillion won and operating profit of 239.6 billion won. Sales rose 11% year-over-year, while profits climbed 23.6%. The company attributes growth to heightened overseas shipments of popular brands and increased demand for premium skincare formulations.
Cosmax Sees Steady Overseas Growth
Cosmax achieved sales of 2.3988 trillion won and operating profit of 195.8 billion won, with sales up 10.7% and profits increasing 11.6%. Expansion in gel masks, creams, and global skincare trends, alongside steady pan-major orders for hair and body products, fueled the performance.
Cosmecca Korea Posts Sharp Increases
Cosmecca Korea’s sales reached 640.6 billion won, a 22.2% jump, with operating profit soaring 38.1% to 83.4 billion won. Strategic investments in bulk operations and production essentials have strengthened its market position.
Cien International Faces Mixed Results
Cien International recorded sales of 288.5 billion won, up 2%, but operating profit fell 22.9% to 22.3 billion won. Large-scale purchases for new formulations and overseas market penetration in skin care and hair products drove sales higher despite profit pressures.
Strategic Expansions Fuel Overseas Push
To meet rising global demand, these ODMs are boosting production capacity and R&D investments. Kolmar Korea operates its key factory in China’s Beijing region and plans to upgrade domestic facilities into smart factories using advanced packaging technology.
Cosmax first expanded into Europe by acquiring 51% of Italy’s Keminova, a major cosmetics ODM serving dermal and skincare brands as well as OEM clients. The company eyes joint ventures and technical collaborations for premium product development. Additionally, Cosmax invested 1.3 trillion won last year in a China smart factory partnership with R&I, projecting capacity growth from 14.9 million to 16 million units.
Cosmecca Korea added 66 million units of capacity at its China factory in May, converting four of 15 production lines to high-end mask packs for overseas markets.
Cien International is constructing a new factory for 790 billion won, six times larger than its current domestic skin and hair facility. Post-completion in September next year, annual production capacity will expand by 10 million units to 14.5 million.
Industry Outlook
A beauty industry executive stated, “Domestic ODMs exceed single-digit growth potential through brand partnerships, product development, and globalization efforts, evolving into total solution providers.” The executive added, “Brands entering China directly must rely on technical expertise and production capacity from partner ODMs, as independent operations remain challenging.”
