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‘One-stop shop’ cosmetics maker powers Selena Gomez’s line

Published: 10 Dec. 2025, 11:06 Updated: 10 Dec. 2025, 13:02

Selena Gomez holds a Rare Beauty product made in Korea. [SCREEN CAPTURE]

Pop star Selena Gomez's Rare Beauty brand is sold all around the world. A small label on the back has piqued interest in the land of morning calm: "Made in Korea."

Rare Beauty, which launched in 2020 and has been valued at $2.7 billion, has become a standout in a crowded beauty market. Korean consumers recently began posting surprised reactions online after noticing that many of its products are manufactured in Korea.

Gomez’s team chose C&C International, a Korean cosmetics original development manufacturer (ODM), as a key supplier. More than half of Rare Beauty’s color cosmetics are produced at C&C plants in Korea. According to industry insiders, Gomez's team contacted the company as early as 2019, a year before Rare Beauty debuted, after learning C&C had produced makeup for 3CE, the color cosmetics brand under StyleNanda that L’Oréal acquired in 2018.

C&C now manufactures products for Yves Saint Laurent and Dior Beauty. The company posted 282.9 billion won ($215 million) in revenue last year, up sharply from 81.6 billion won in 2019.

The rise of “Rare Beauty, made in Korea” illustrates how Korean ODM companies have grown from the hidden engines behind K-beauty to the “TSMC of the global beauty industry.” Much like the Taiwanese chipmaker powers the semiconductor and AI sectors by manufacturing units designed by fabless firms, Korean ODM companies such as Kolmar Korea, Cosmax, Cosmecca Korea and C&C turn brands’ concepts into finished products.

A Rare Beauty product displays the words “Made in Korea.” [SCREEN CAPTURE]

The four top ODM companies now serve more than 10,000 clients worldwide, with a combined annual revenue exceeding 6 trillion won. In their rolodexes are everyone from celebrities like Gomez to ordinary office workers who want to launch their own brands and sell globally.

Five years ago, Na Cheol-gyun, now CEO of BMcos, was an office worker with a simple idea: “What if I make cosmetics using Boryeong mud?”

Despite having no manufacturing experience, he partnered with Kolmar Korea and launched his first product — BRMud — just six months later in June 2021. The mud mask soon reached No. 1 in its category on Amazon in the United States, with 80 percent of its sales now coming from overseas. Revenue, which stood at 2.9 billion won last year, is on track to reach nearly 10 billion won this year as of November. Factoring in current contracts, Na expects revenue to hit 30 billion won next year.

Researchers work on cosmetics at Kolmar Korea’s R&D Center in Seocho District, southern Seoul. [KOLMAR]

“Thanks to Korea’s advanced ODM companies, brands like us can focus on marketing and market expansion,” Na said. ODM has changed both individual lives and the competitive landscape of the beauty industry.

“ODM companies are the driving force behind K-beauty’s global growth,” said a representative of Gudai Global, which owns indie brands such as the Beauty of Joseon, TirTir and Skin1004.

So what is the competitive edge that allowed Korean ODMs to dominate the global market? The answer begins with speed. The Los Angeles Times recently reported that Korean ODM companies’ ability to develop entirely new products in as little as three to six months — compared with one to three years for competitors — is what enables Korean indie brands to rapidly scale worldwide.

Kolmar Korea CEO Choi Hyun-kyu speaks with the JoongAng Ilbo during an interview at the company’s headquarters in Seocho District, southern Seoul, on Oct. 22. [KOLMAR]

Behind this speed is a vast formulation database built through decades of research and development (R&D) and production. This allows ODMs to quickly pull suitable recipes while customizing ingredients to meet brand needs — all while adhering to the “one client, one formulation” principle to avoid overlap.

Another key factor is rigorous training. Kolmar Korea CEO Choi Hyun-kyu, who has worked at the firm for 33 years, said in an interview with the JoongAng Ilbo in October, “From day one, under the direction of Chairman Yoon Dong-han, employees trained intensely to develop and produce high-quality products quickly.”

Kolmar Korea now serves 4,500 clients, produces more than 15,000 unique products annually and has five plants in Korea and abroad with a combined capacity of 2 billion units per year.

Choi Jae-woo, head of domestic marketing at Cosmax, speaks with the JoongAng Ilbo during an interview at the company’s headquarters in Seongnam, Gyeonggi, on Oct. 28. [COSMAX]

Cosmax, which stands alongside Kolmar Korea as a global ODM leader, also notes rapid client growth. “We already have 24 indie brands that each generate more than 100 billion won in annual revenue,” said Choi Jae-woo, head of domestic marketing at Cosmax. “Without ODM, Korean indie brands could not have expanded overseas at this scale.”

Another advantage is the “one-stop shop” approach, including packaging production. Kolmar Korea acquired a packaging manufacturer in 2022, while Cosmax has an internal packaging design team. Both test packaging to ensure structural stability and resistance to temperature fluctuations. With consumers gravitating toward practical, lightweight and minimalist packaging, demand for ODM-led packaging solutions is growing.

Strict quality control is another strength. Since Kolmar Korea first received certification in 1994, Korea has expanded to 191 cosmetics production facilities certified under the Ministry of Food and Drug Safety’s Current Good Manufacturing Practice (CGMP) standards.

“Although CGMP is not mandatory, cosmetics from certified facilities are generally regarded as having strong production and quality controls,” a ministry official said.

A packaging designer at Cosmax works on a cosmetics container design. [COSMAX]

Korean indie brands also benefit from competitive pricing. “We reduced defect rates through factory optimization and automated packaging systems to lower unit costs,” explained a Kolmar Korea representative.

Let’s imagine an office worker who wants to create their own beauty brand. They first need to decide on a product concept, target cost and distribution strategy. ODMs typically require a minimum order quantity of around 3,000 units, costing roughly 20 million to 30 million won. They submit their idea through an ODM firm’s inquiry portal and are contacted to schedule a meeting.

Through consultations, their concept becomes more refined. If they request it, ODMs provide precontract samples. After signing, researchers develop formulations tailored to their requirements. ODMs evaluate ingredient safety, adjust blends and create multiple versions if needed. Once the sample is approved, mass production begins in about two weeks, with packaging design finalized concurrently.

A view of Kolmar Korea’s headquarters in Seocho District, southern Seoul. [KOLMAR]

After production, the product undergoes safety testing and quality inspections. Once it passes, it is ready for sale. Only functional cosmetics require a separate review by the Drug Safety Ministry.

“Much of today’s ODM strength comes from the foundation built during the heyday of brick-and-mortar shop brands,” said Choi of Kolmar Korea. In the 2000s, brands such as Missha and The Face Shop — which lacked manufacturing facilities — partnered with ODM firms to launch hit products, reshaping the industry. This mirrors today’s indie brand boom.

One defining product was Missha’s 2011 megahit, the Time Revolution The First Essence — widely known as an affordable dupe of SK-II’s Pitera Essence. Kolmar Korea developed and produced it. After researching fermentation ingredients with similar efficacy, Kolmar created an essence containing 80 percent fermented yeast extract and launched it immediately after the Pitera patent expired.

Researchers conduct cosmetics development at Cosmax. [COSMAX]

With comparable effectiveness but a price point about one-fifth as high, the product became a sensation. Founder Yoon recalled in a July interview, “Once the Missha essence became a hit, many companies asked us to add the same ingredient to their products, but we rejected them based on our ‘one client, one formulation’ rule.”

Korea’s ODM industry began in 1990, when Yoon established Kolmar Korea through a joint venture with a Japanese firm, believing Korea needed manufacturers dedicated to technology while brands focused on sales — as in the United States and Japan. ODM was a revolutionary shift from the original equipment manufacturer (OEM)-dominated system.

At first, it was difficult to persuade the market to accept the ODM model. But after Korea’s gross national income surpassed $10,000 in 1994 and demand for cosmetics surged, opportunity emerged. Companies rushed to expand brands, product lines and distribution channels. Cosmetics stores appeared nationwide, and firms without factories — or those reliant on OEMs — began turning to ODM.

A view of Cosmax China, the company’s Shanghai subsidiary [COSMAX]

Food company Pulmuone launched cosmetics through Kolmar Korea, while CJ CheilJedang entered the beauty market with “Plant Country” via Kolmar. Even companies with their own factories sought Kolmar’s technology, and global players like Amway partnered with Kolmar to establish a foothold in Korea.

Cosmax, founded in 1992 as Korea Miroto through a Japanese technical partnership, went its own way in 1994 to pursue independent R&D. “Without our own development capabilities, we had no future,” Chairman Lee Kyung-soo wrote in his autobiography.

In 2022, Kolmar Korea acquired full rights to the “Kolmar” trademark from its original U.S. namesake — a symbolic milestone marking its rise beyond its origins. Today, Kolmar and Cosmax each reinvest 5 to 6 percent of revenue into R&D, compared with the 4 percent average for beauty brands and around 1 percent in the food industry.

A view of Kolmar Korea’s second plant in Pennsylvania on the U.S. East Coast [KOLMAR]

These investments are apparent in product innovation. Kolmar produces 70 percent of Korea’s sun care products. To improve ultraviolet protection and longevity, the company adopted a “layered intercalation” technique used in gastrointestinal drugs, inserting active ingredients into polymers. Diversification into pharmaceuticals and health supplements also allowed the company to apply cosmetic absorption technologies to ointments.

Korean ODMs have expanded globally, beginning with China. Cosmax established a Shanghai subsidiary in 2004 — the first Korean cosmetics ODM to enter China — betting on long-term market potential despite China’s GDP per capita being one-tenth that of Korea's at the time. The market later exploded, and by 2007, Cosmax was receiving a flood of orders. Today, eight of the top 10 Chinese beauty brands are Cosmax clients, and it holds the dominant share of China’s ODM market.

Kolmar Korea’s China plant, which began operations in 2018, has a capacity of 550 million units annually. Despite intense price competition from Chinese ODMs, Korean firms have succeeded by focusing on quality. Choi, who previously oversaw Kolmar’s China business, said millennial and Gen Z consumers in China are highly discerning, checking ingredient lists online. “They trust Korean ODM products because the technology is far superior,” he said.

Customers shop for Korean cosmetics products at an Olive Young store in Seoul on Nov. 24. [YONHAP]

Nonetheless, Korean firms are diversifying to avoid risks tied to China, including geopolitical tensions. Cosmax and Kolmar Korea opened U.S. factories in 2015 and 2016; Kolmar added a second plant in Pennsylvania this July.

“We expect strong ODM demand from U.S. indie brands,” a Kolmar representative said, adding that the facility will also serve as a production hub for Latin America and Europe. Cosmax is planning expansion in India and Europe as well.

Global expansion also supports Korean brands’ overseas strategies by helping them navigate different regulatory systems. Producing locally also reduces exposure to political or economic shocks. “Even if a country becomes less favorable to Korean culture, Korean ODMs can still manufacture ‘Made in China’ or ‘Made in USA’ products using Korean technology,” said Prof. Rhee Hong-jai of the Ajou University Department of Business Administration.

A customer shops for cosmetics products at a store in Seoul on Nov. 4. [YONHAP]

But the industry is not without threats. Chinese ODM companies are rapidly catching up.

“Since 2010, Chinese ODM firms have hired Korean researchers with salaries triple the norm, narrowing the technology gap,” said Sungshin Women’s University Cosmetics Prof. Kim Ju-deok.

“Chinese ODMs have benchmarked us for years. The overall level has risen,” acknowledged a Korean ODM source.

Chinese beauty products are also gaining traction among Korea’s Gen Z. According to the Ministry of Data and Statistics, direct purchases of Chinese cosmetics reached 79.2 billion won in the third quarter, rising for six consecutive quarters since the first quarter of 2023.

“Korea needs to preserve its overwhelming technological edge,” Prof. Kim said. “The government should increase R&D support and open public research facilities to smaller ODM firms. ODM companies must focus not only on speed but also on developing long-lasting steady sellers to remain global leaders.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG, KIM KYUNG-MI [[email protected]]

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