Cosmax sees indie beauty as major opportunity to accelerate new ...

In his new year address, Cosmax BTI CEO Lee Byung-man highlighted that 2025 would be a pivotal time for the company.

In January, South Korea’s Ministry of Food and Drug Safety (MFDS) confirmed that K-beauty exports surpassed the USD10bn milestone for the first time in 2024.

With global interest in K-beauty at a high, Lee believes the firm was at a “strategic turning point” with the opportunity to position itself as a key player in the global beauty industry.

“As new growth opportunities come to K-beauty, Cosmax will reach a strategic inflection point where it will stand at the centre of all beauty.”

He highlighted that with globalisation and advancements in technology, today’s consumers were “interconnected without constraints of time and space”, allowing trends and products to transcend geographical barriers.

As such, he believes Cosmax has the opportunity to establish itself as the leading hub of the global beauty market.

Local opportunities

Moving forward, the company aims to collaborate with indie brands as part of a strategic plan to drive global expansion and tap into new and emerging markets.

It said it will offer tailored support based on brand size with the help of overseas subsidiaries in key regions like China, the United States, and South East Asia.

These regional subsidiaries will be key in helping to nurture and develop their indie brand clients.

Furthermore, the company is launching Project LOCO which aims to secure clients in emerging regions such as India, Latin America, and Africa.

According to Cosmax, Project LOCO’s goal is to “secure a diverse pool of raw materials and components from around the world, while maintaining core functions in line with local consumer demand.”

Lee expects that products developed through the Project LOCO will drive the growth of local markets.

“The most important competitive edge has become how quickly and valuably we can deliver the products and services that consumers want… This year will be a turning point in solidifying our leadership in the global cosmetics and health supplement ODM market and developing an innovative business model.”

Future R&D

Additionally, the firm affirmed its commitment to strengthening its research and development, citing academic partnerships with Seoul National University, Harvard University, and Fudan University.

Most recently, it announced that it had signed a memorandum of understanding with the National University of Singapore (NUS) to conduct collaborative research on the microbiome.

According to the announcement, Cosmax and NUS plan “to conduct collaborative research across the entire process, from strain improvement to cell design and biosynthesis.”

The collaboration is aligned with the Cosmax’s goal to development “new materials”.

It is currently aiming to develop natural emulsification systems and further its research into beneficial bacteria with anti-ageing properties.