Thanks to the global K-beauty craze, COSMAX, Kolmar Korea, Cosmecca Korea, and C&C International, the top four domestic cosmetics ODM (Original Design Manufacturer) companies, posted over 3 trillion won in revenue in the first half of this year alone. The performance of ODM companies has improved overall as their main clients, K-beauty firms, achieved solid sales results both domestically and internationally.
These companies are also pushing to expand production capacity (CAPA) to respond to growing orders from clients. They are actively working on securing overseas production facilities as well.
According to the cosmetics industry on the 17th, COSMAX, Kolmar Korea, Cosmecca Korea, and C&C International reported a combined revenue of 3.0161 trillion won in the first half of this year. This figure represents a 10.3% increase compared to the same period last year. This is the first time that the combined half-year revenue of these four companies has surpassed 3 trillion won.
COSMAX recorded a revenue of 1.2122 trillion won and an operating profit of 112.1 billion won in the first half of the year. These figures represent an increase of 12.4% and 21.7%, respectively, compared to the same period last year. The performance was driven by sales of mask packs and sun care products. The sales of gel mask products increased by more than three times compared to the same period last year, with hydrogels exhibiting moisturizing abilities increasing sales by more than 20 times. Sales of sun care products also rose by over 50%.
Kolmar Korea's first-half performance showed a revenue of 1.3839 trillion won and an operating profit of 133.4 billion won. Compared to the first half of last year, revenue increased by 12% and operating profit grew by 28.1%. The growth was driven by the expansion of export volumes for indie brands and strong performance in sun care products. The sales of its U.S. subsidiary also reported an increase of 71.4% year-on-year, reaching 401 billion won, supporting its overall performance.
Cosmecca Korea recorded a revenue of 280.1 billion won and an operating profit of 35.3 billion won in the first half of the year. Compared to the same period last year, revenue grew by 4% and operating profit by 11%. Cosmecca Korea is expanding its product lines in color cosmetics (20%) and sun care (20%), focusing on its core product line of skincare cosmetics, which represents 60% of its production. In the second quarter of this year, sales of color cosmetics increased by 20.9% compared to the previous year.
C&C International posted a revenue of 139.9 billion won and an operating profit of 14.3 billion won in the first half. Both revenue and operating profit decreased by 8.3% and 34.4%, respectively, compared to the same period last year. C&C International is the only major ODM that primarily produces color cosmetics, and the decline in its major clients' order volumes since the second half of last year has affected its results. However, in the second quarter of this year, revenue and operating profit increased by 12% and 56%, respectively, indicating the possibility of a rebound in performance.
Domestic ODM companies are expanding their production capacity in response to increasing workloads. COSMAX has expanded its domestic production facilities in Hwaseong and Pyeongtaek by 30% this year, increasing its CAPA from 780 million to 970 million units. In April, it commenced the construction of a new factory for its Thai subsidiary. Once operational in September next year, the Thai subsidiary is expected to increase its annual production capacity by 230 million units.
Additionally, COSMAX is building a new office and production facilities in Shanghai, China, aiming for completion next year. There are also plans to start construction on a factory in Japan in the second half of this year.
Kolmar Korea began operations at its second U.S. plant from mid-last month. The second plant has an annual production capacity of 120 million units, bringing the total to about 300 million when combined with the first plant. Domestically, the annual production capacity was increased from 370 million to 530 million units through the expansion of its Sejong skincare factory last year. Kolmar Korea also plans to build a new color cosmetics plant in the Incheon Namdong Industrial Complex.
Cosmecca Korea commenced operation of its new factory in Cheongju in May, adding an annual CAPA of 66 million units. Out of the 15 production lines, four were allocated for exclusive use of hydrogel masks to proactively respond to the demand for mask packs that are gaining popularity overseas.
C&C International is building a combined production facility for color cosmetics and skincare in Cheongju, aiming for completion in 2027. The new factory site covers an area of 63,894 square meters (approximately 19,300 pyeong), which is more than six times larger than the existing domestic sites in Hwaseong and Yongin. A spokesperson for C&C International stated, "Once the new plant is operational, the company's annual CAPA is expected to increase from the current 450 million units to over 1.45 billion units."