Cosmetics OEM Industry -2023
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Report Overview - Cosmetics OEM Industry
- 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.
Cosmetic OEMs Industry Value Chain
- 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
- 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