South Korean cosmetics ODM leader COSMAX Group has signaled a strategic shift from export-driven growth to localized production and development in Europe, with Italy as its central hub. The move, announced during President Lee Jae-myung's state visit to Italy, underscores a growing trend among Asian beauty manufacturers to establish direct manufacturing and R&D bases in key Western markets, a development that overseas distributors and clinic buyers should monitor for supply-chain implications.
Strategic pivot to Europe
COSMAX Group Vice Chairman Ho Min-ho, accompanying President Lee Jae-myung on his state visit to Italy, outlined the company's plan to transform its European business model. Speaking at the Korea-Italy Business Roundtable in Rome on June 12, Ho emphasized that Italy would serve as the strategic base for COSMAX's European operations, moving beyond simple exports to localized production and development. The roundtable gathered about 40 officials from companies, associations, and governments of both countries, discussing cooperation in advanced industries such as aerospace, AI, and semiconductors, as well as consumer goods including beauty, food, energy, infrastructure, and bio.
Keminova acquisition as catalyst
COSMAX Group's participation in the economic event followed its acquisition of a 51% stake in Italian ODM firm Keminova in early 2026. Keminova, a local manufacturer with 2025 sales of approximately KRW 18 billion (about USD 13.5 million) and an annual production capacity of roughly 20 million units, specializes in dermocosmetics, hair care, and medical devices. "Italy is a market strong in quality, brand, sensibility, and tradition, while Korea excels in rapid innovation, execution, and global trend responsiveness. When these two competitive strengths meet, significant opportunities arise," Ho said.
Localization as new growth model
Ho described the Keminova acquisition as more than an asset purchase: "It is a process of creating a new growth foundation together for Korea and Italy. It has further strengthened our understanding of the local market and our business base." He diagnosed that K-Beauty is at a turning point. "Until now, K-Beauty grew by creating innovative products in Korea and exporting them to various countries. Now, we are evolving beyond exports to directly enter Italy, a core European market, and meet local consumers more closely," Ho stated.
Sourcing context for buyers
COSMAX has maintained the world's No. 1 position in cosmetics ODM for about 10 years since 2015, with direct operations in South Korea, the United States, China, Australia, Thailand, and Indonesia. The company contributes approximately 25% of South Korea's cosmetics exports through direct exports with client firms. For overseas importers, distributors, and clinic buyers, this localization strategy signals potential shifts in supply-chain dynamics: European-based production could reduce lead times, lower shipping costs, and offer region-specific formulations, particularly in dermocosmetics and medical-device categories where Keminova has expertise.
Source: Read the original report | Published: June 19, 2026