Hello, we’re bringing you some exciting news about K-Beauty! As K-Beauty’s reputation continues to rise globally, domestic cosmetic Original Development Manufacturing (ODM) companies have achieved historical sales results. The remarkable increase in orders from key overseas markets such as North America and Europe has driven this growth, reaffirming the strong foundation of the K-Beauty ecosystem.
K-Beauty Growth Leads to Record-Breaking Cosmetic ODM Sales
K-Beauty’s Presence Sweeping the Global Market
K-Beauty’s presence is sweeping the global market! It’s truly impressive, isn’t it? The country’s cosmetic export value recorded 13.88 trillion won (10.2 billion dollars) in 2024 and skyrocketed to 16.9 trillion won (11.4 billion dollars) in 2025, continuing a dazzling growth trend for two consecutive years. Notably, last year, the United States emerged as a new core market by surpassing China, the long-standing largest export country, with a high growth rate of about 12%. Export volumes also expanded significantly in emerging markets such as Europe and the Middle East, and for the first time, Poland entered the top 10 export rankings, showing just how broad K-Beauty’s base is becoming.
Stunning Growth of ODM Companies
As K-Beauty’s explosive growth aligns with it, the two pillars of the domestic ODM industry, Kolmar Korea and Cosmax, also achieved record sales last year. Kolmar Korea recorded sales of 2.3988 trillion won, and Cosmax achieved 1.4583 trillion won, firmly leading the market. Even smaller companies like Cosmecca Korea and C&C International showed meaningful growth, with sales of 640.6 billion won and 288.5 billion won, respectively, compared to the previous year. These companies’ growth is also evidence of their strong support for the essential manufacturing capabilities needed for K-Beauty’s global expansion.
Tackling the European Market and Eco-Friendly Strategies
In search of new growth drivers, ODM companies are vigorously targeting the European market! Cosmax has boldly expanded its investment in the high-growth-potential European market, acquiring a 51% stake in Italian cosmetic ODM company ChemiNova last year, establishing a local production base. Kolmar Korea teamed up with global chemical company Eastman to proactively respond to Europe’s strengthened environmental regulations by beginning the development of eco-friendly makeup materials. Kolmar Korea aims to achieve 300 billion won in sales in the European market this year, drawing much attention to their progress.
Changes in the Chinese Market and the Rise of SMEs
In the midst of the strong performance in North America and Europe, the Chinese market, which had shown a temporary slowdown, witnessed the remarkable activities of small and medium-sized ODM companies. C&C International achieved an astounding result with a dramatic increase of about 120% in sales from its Chinese subsidiaries last year. This success is attributed to diversifying portfolios and successfully increasing orders in its Shanghai and Guangzhou subsidiaries. Cosmecca Korea also demonstrated its strength by focusing on high-functional skincare products, turning its fourth-quarter operating profit to positive.
Challenges of Profitability in the North American Market
However, in the fiercely competitive US market, ensuring profitability has emerged as a significant challenge. Both Cosmax and Kolmar Korea continue to expand their investment in local plants, but high labor and production costs remain a significant burden. Kolmar Korea saw a 5.2% decrease in its US subsidiary’s sales due to the operational costs of the new factory in Pennsylvania, which started running last year. Similarly, Cosmax, facing reduced orders from existing clients and initial operating cost burdens of its plants, shows weakened profitability, necessitating a strategic approach in this market.
An industry insider assessed that the diversification of K-Beauty’s export market into regions such as the US and Europe has heightened the importance of the roles of domestic ODM companies.
“Recently, there is a trend to expand portfolios to include devices based on research and development capabilities and production infrastructure.”
This suggests that ODM companies will lead the continuous growth of K-Beauty not just through manufacturing, but with innovative technologies and products.
In Conclusion
In summary, the worldwide popularity of K-Beauty has presented domestic cosmetic ODM companies with tremendous growth opportunities. The new strength in the North American and European markets reaffirms the importance of market diversification. Major companies, including Kolmar Korea and Cosmax, are responding magnificently to these changes with proactive strategies like securing overseas production bases and developing eco-friendly technologies. While challenges like securing profitability in the North American market remain, their ongoing research and development and portfolio expansion promise to robustly lead the future of K-Beauty. It’s worth keeping a close watch and having high expectations for their journey!
As we anticipate the relentless innovation and global growth of the K-Beauty cosmetics industry, Yuricos will not spare any practical support with our reliable blog marketing expertise to help your brand shine even brighter in the global market.
