[Guangzhou, March 15, 2024] As global consumers’ health awareness continues to improve, the ODM/OEM market for high-end cleaning and health-related daily products is undergoing unprecedented transformation and upgrading. According to the latest industry report, the global high-end cleaning OEM market size has reached US$12 billion in 2023, and is expected to exceed US$18 billion by 2026, with an annual compound growth rate of more than 15%. Under this trend, Chinese ODM/OEM companies are reshaping the global high-end cleaning industry chain through technological innovation and service upgrades.
Customized R&D capabilities have become core competitiveness
Leading OEM companies have established a new business model of “Innovation Research Institute + Flexible Production Line”. The “Healthy Washing and Care Solution Library” recently launched by a leading ODM company has attracted industry attention, including:
300+ mature formula systems
50 exclusive patented technologies
15 efficacy evaluation laboratories
“We can provide customers with full-cycle services from market insights to product implementation, and the new product development cycle is shortened to 21 days.” The company’s R&D director said. It is reported that the microecological balance shampoo it developed has created a billion-level single product for many international brands.
Biotechnology leads the formula revolution
The industry is accelerating the transformation of cutting-edge scientific research results into commercial value:
The “probiotic protection technology” developed by a company has been internationally certified
Nano-encapsulated active ingredients increase product efficacy by 80%
Plant stem cell extracts have been applied on a large scale
It is particularly worth noting that the “zero stimulation” formula system developed for sensitive skin has passed the EU ECARF certification and has become a designated supplier for many high-end maternal and child brands.
Smart manufacturing empowers high-end production
To meet differentiated needs, OEM companies are comprehensively promoting digital upgrades:
The “dark factory” with an investment of 500 million yuan is about to be put into production
MES system achieves 100% traceability of production data
AI visual inspection accuracy reaches 99.99%
The latest Swiss filling equipment introduced by a certain company has an accuracy of ±0.5ml and is specially customized for high-end essence products.
In-depth implementation of sustainable development strategy
Environmental protection requirements are driving changes in the entire industry chain:
100% degradable packaging solution
Carbon footprint management system covers all products
The proportion of clean energy use has increased to 60%
The “zero-carbon factory” standard developed by a company in cooperation with environmental protection agencies has become an industry benchmark.
Global market layout is accelerating
Chinese OEM companies are actively expanding the international market:
Establishing a research and development center in Southeast Asia
Obtaining international certifications such as EU GMPC and US FDA
Providing customized services for 30+ international brands
“Our overseas orders will increase by 45% in 2023, especially in the Middle East and European markets.” The head of international business of a certain company revealed.
Industry expert opinions
Zhang Mingyuan, president of China Daily Chemical Research Institute, pointed out: “In the future, the competition in the high-end cleaning and care OEM industry will be a comprehensive contest of scientific and technological innovation capabilities, rapid response speed and sustainable development level. Enterprises with full industry chain service capabilities will gain greater development space.”
[Market Outlook] From traditional OEM to value co-creation, China’s high-end cleaning and care ODM/OEM industry is making a qualitative leap. Driven by the wave of healthy consumption, this vibrant market will continue to breed new growth opportunities and provide a model case for the transformation of China’s manufacturing to China’s intelligent manufacturing.
(Data source of this article: Euromonitor, China Daily Chemical Association, enterprise interviews)
