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Full view of Cosmax headquarters. (Photo=Cosmax) |
[Alpha Biz= Kim Jisun] The cosmetics industry, benefiting significantly from the global K-beauty craze, is making extensive efforts to expand its overseas production and distribution networks.
According to industry sources on Sunday, leading Korean cosmetics ODM (Original Design Manufacturing) companies, Cosmax and Kolmar Korea, are pushing to expand their production facilities in key markets such as the United States and China. Cosmax is investing a total of 130 billion KRW to construct a new headquarters for Cosmax China, including production facilities, in Shanghai's Xinzhuang Industrial Zone. Once completed in 2026, the new headquarters will allow the company to strengthen its local sales network and collaborate with external organizations and businesses on research initiatives. Additionally, Cosmax opened a sales office in Los Angeles (LA) last August to attract local indie beauty brands.
Kolmar Korea is set to complete its second plant in Pennsylvania in the first half of this year. Last year, despite running its domestic and international factories at full capacity, the company struggled to keep up with surging demand. To address this, it decided to build a new factory in the U.S., where many of its major clients are based. Upon completion, Kolmar Korea’s annual production capacity will increase significantly from 1.482 billion units to 2.042 billion units.
CJ Olive Young, a leading K-beauty retail channel, recently established a local subsidiary in California and announced plans to open its first offline store in the U.S. The company aims to build a comprehensive business network in the region, replicating its domestic product sourcing, marketing, and logistics systems.
The rush of K-beauty companies expanding overseas is expected to accelerate as the domestic market approaches its growth limits. APR, famous for its beauty device brand “AGE-R,” generated more than half of its 722.8 billion KRW revenue from international markets last year.
According to the Korea Trade Statistics Promotion Institute, Korea’s cosmetics exports surpassed $10 billion (approximately 14.4 trillion KRW) for the first time last year. In the U.S., Korean cosmetics even overtook French brands to claim the largest market share among imported beauty products.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
