Report on Cosmetics OEM Market Research 2015

NEW YORK -- Cosmetics OEM stands for cosmetics original equipment manufacturer which means the processor produce the goods that attach the trademark offered by the entrusting party. For now, cosmetics OEM enterprises in China mainly located in Guangdong Province, especially Baiyun, Huadu Fanyu and other suburbs in Guangzhou, and some located in Shanghai, Suzhou, Xiamen and Zhejiang. Almost all of them are local manufacturers, and some are Taiwan, Hong Kong& Macao owned enterprises or joint ventures.

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The development of cosmetics OEM relies on the development of cosmetics industry, according to statistics from Euro monitor, the cosmetics retail scale is expanding and reached RMB 233.575 billion in 2013, with an increase of 8.5 %. Among the industry, the retail scare of skincare products reached RMB 131.41 billion, which occupied half of the market. The prosperity and development of the cosmetics industry promotes the development of cosmetics OEM industry. Today, there are several thousand cosmetics OEM manufacturer in China, but most of them are SMEs, and few are large enterprises. As the popularization of cosmetics OEM in our cosmetics production sector and the trend of incoming foreign enterprises, as well as the huge cosmetics OEM market provided by cosmetics E-Commerce, our scale of cosmetics OEM market is expanding. In 2013 our cosmetics OEM market scale nearly reached RMB 25 billion with an increase of 12.4 %. Average consumption of cosmetics in China is relatively low, and has a huge potential. With the increase of the income level and the optimization of consumption structure, the consumption in cosmetics market will rise. According to China Competition Information, the retail scale of cosmetics market will increase and reach more than RMB 340 billion in 2018. ODM mode is unquestionably the development trend of future cosmetic industry. As the development of cosmetics E-commerce and the huge market provided by cosmetics industry, the domestic cosmetics OEM market scale will keep expanding and exceed 40 billion in 2018.

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