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Cosmetics OEM in Thailand

11 July 2023

Cosmetics OEM in Thailand

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SPEEDA Industry Report

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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

 

 

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