Riding K-Beauty's Wave... Three Cosmetic ODM Giants Achieve Record-High Results

Kolmar Korea, Cosmax, and Cosmecca Korea Set Record-High Q2 Results
Orders Surge as Indie Brands Expand Globally

Thanks to the global popularity of K-beauty, South Korea's top three cosmetic ODM (Original Development Manufacturing) companies achieved all-time record results in the second quarter of the year. As demand for K-beauty surged rapidly in major markets such as the United States and Europe, orders from domestic indie brands skyrocketed. Kolmar Korea, Cosmax, and Cosmecca Korea each broke their own quarterly records.

According to the cosmetics industry on August 12, Kolmar Korea, Cosmax, and Cosmecca Korea all posted record-breaking quarterly results in the second quarter of this year. Kolmar Korea reported consolidated sales of 861.3 billion won and operating profit of 110.3 billion won, up 17.9% and 50.2%, respectively, compared to the same period last year. A Kolmar Korea representative said, "Order volumes for skincare and sun care products increased, driven by the global expansion of indie brands and the peak season for sun care," adding, "With global clients also launching new products, we achieved the highest-ever quarterly results."

A researcher at Kolmar Korea is conducting a cosmetic preservation test using a robot. Provided by Kolmar Korea.

Cosmax and Cosmecca Korea also joined the record-breaking streak. Cosmax posted consolidated sales of 794.9 billion won in the second quarter, representing a 27% increase year-on-year. Operating profit was 73.7 billion won, up 21%. Both domestic and overseas subsidiaries delivered stable growth. Seung Eun Lee, a researcher at Yuanta Securities, analyzed, "Cosmax's all-time quarterly results were possible thanks to strong performances not only in Korea but also across all regions," adding, "Notably, the U.S. subsidiary turned an operating profit for the first time since its establishment." He also noted, "It is encouraging that Cosmax's manufacturing competitiveness has started to show in operating results in the United States—a major contributor to sales along with Korea and China—after years of restructuring."

Cosmecca Korea also set a new record for quarterly consolidated performance, posting sales of 226.1 billion won and operating profit of 32.1 billion won in the second quarter—up 39.8% and 39.2%, respectively, year-on-year. Jongdae Park, a researcher at Hana Securities, remarked, "Cosmecca Korea's second-quarter operating profit far surpassed the market's expectation of 27.7 billion won."

The combined strong performance of all three ODM companies can be attributed to the global spread of K-beauty and the rise of indie brands. Unlike in the past, when exports were mostly driven by a handful of large cosmetics firms, a variety of domestic brands—such as Medicube, Beauty of Joseon, Anua, and Celimax—are now rapidly expanding in markets across the United States, Europe, and Japan. As these brands, which find it difficult to operate their own production facilities, increase their orders, ODM firms that handle everything from product development to manufacturing also see their volume rise.

The expansion of K-beauty's sales stage from online to offline is another boon for ODM companies. While K-beauty brands had been targeting overseas markets primarily through online platforms like Amazon, they are now expanding into major offline distribution channels such as Ulta Beauty, Sephora, Costco, and Target in the United States, and Boots in the UK. As distribution channels broaden, brand companies are launching new products in addition to their mainstay items like sunscreens and serums. The more product categories a brand offers, the more orders ODM companies receive.

An industry official noted, "Whereas in the past orders from a few large customers or the situation in the Chinese market often had an outsized impact, these days we're seeing the diversification of both export markets and customers." The official explained, "As the number of K-beauty brands in the global market increases, growth opportunities for domestic ODM companies that manufacture these products are also expanding."

This content was produced with the assistance of AI translation services.