Cosmetics ODMs expand factories one after another as global popularity of Korean beauty boosts demand - Korea

Sungjin Beauty Science, a Korean cosmetics raw materials manufacturer, opened a new over-the-counter (OTC) drug manufacturing plant in the Changhang National Ecological Industrial Complex in Chungcheongnam-do in June.
The company has been trialing its Beauty Manufacturing Factory No. 4, which is dedicated to ODM (original design and manufacturing for a client's brand). The factory, which is dedicated to ODM (original design and manufacturing for a client's brand), has an annual production capacity of 50 billion won (approximately 5.22 billion yen).
It is expected that the scale of the plant can be expanded to a maximum of 70 billion won (US$69.5 million) through more efficient design. Full-scale operation is scheduled to begin in July.
Cosmecca Korea opened a new factory in Cheongju in May and began operations.
The company was established to meet the growing demand for hydrogen skin masks. Other ODM manufacturers, Cosmax and Korea's Kolma, are also expanding their production facilities. Cosmax will open a new factory in Hong Kong by the end of the year.
The company will expand its Hwaseong and Pyeongtaek plants by more than 30% compared to last year, and Korea's Kolma is scheduled to complete construction of its second US plant by the end of the year.
The popularity of Korean cosmetics is the reason behind the expansion of production facilities by cosmetics ODM manufacturers. An industry insider said, "Certain advances and raw materials, etc., are becoming more and more popular.
"The value of small and medium-sized ODM manufacturers that have strengths in the areas that cosmetic brands focus on is also increasing."