Cosmetics OEM in Thailand

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Report Overview - Cosmetics OEM Industry

Salient Features

• Thailand is the leading Original Equipment Manufacturer (OEM) for cosmetic brands in the ASEAN region. It is considered a base for the production of cosmetics, offering OEM services to both local and international brands.
• Product differentiation is low due to the extensive availability of low-cost offerings from cosmetics OEMs.
• The Thai government's legalization of hemp in Thailand has greatly benefited the country's OEM companies.
• During the COVID-19 pandemic, the production of cosmetics experienced a decline primarily due to reduced demand from overseas markets. However, overall demand for cosmetics was on an uptrend.
• Small and Medium-sized Enterprises (SMEs) make up the largest portion of the Thai cosmetics OEM industry. These SMEs largely cater to small cosmetics brands by providing a range of services.

Value Chain/Business Model

• The industry is broadly segmented into companies providing OEM/ Original Design Manufacturer (ODM) services and those manufacturing their own brands while also offering OEM/ODM services.
• Thai OEMs not only provide OEM services but also offer ODM services. Among the different segments, skincare and makeup are the most penetrated segments in terms of OEM/ODM services.

Other Points

• OEMs gain credibility as the Thai FDA strengthens the rules for manufacturing cosmetics. 

 Cosmetic OEMs Industry Value Chain

Report Index

Industry Overview

• Thailand; Leading OEM for Cosmetic Brands in the ASEAN Region
• Thai OEMs Provide ODM Services; Skincare and Makeup Being the Most Penetrated Segment
• Product Differentiation Low Due to Extensive, Low-Cost Offerings from Cosmetics OEMs
• Legalisation of Hemp by the Thai Government Act Beneficial for OEM Companies in Thailand
• OEMs to Gain Credibility as FDA Strengthens Regulation of Manufacturing Practices

Market Trends

• Drop in Cosmetics Production Driven by Reduced Overseas Demand; Domestic Cosmetic Demand on an Uptrend

Competitive Trends

• SMEs Make Up the Largest Portion of the Thai OEM Industry with Companies Increasingly Providing Services to Small Cosmetic Brands
• S&J International Enterprise; Listed OEM Company Manufacturing High-Quality Cosmetic and Personal Care Products 
• Milott Laboratories: OEM Manufacturer Serving Almost 100 Plus Thai Clients
• Neocosmed: OEM Manufacturer of Five Main Categories of Products Including Skincare and Personal Care