K-beauty growth drives surge in South Korean cosmetics ODM firms

South Korean cosmetics Original Design Manufacturer (ODM) companies are experiencing significant growth driven by the global popularity of K-beauty and the rise of independent brands. Major players including Cosmecca Korea, Kolmar Korea, and Cosmax have seen substantial stock price increases and strong second-quarter earnings.

This growth is fueled by expanding exports to the United States and Europe, with non-Chinese markets seeing rapid development. As independent brands increasingly outsource research, development, and production to specialized manufacturers, ODM firms are expanding their production capacities and R&D investments.

This industrial expansion has also led to a surge in employment. Between 2022 and mid-2024, the combined workforce of Kolmar Korea and Cosmax grew by over 1,000 employees, a growth rate that outpaced major technology firms like SK Hynix. The increase has primarily focused on long-term, permanent staff to support increased production and technical development.