With the implementation of China's "Cosmetics Supervision and Management Regulations" and its supporting efficacy claim evaluation system, the compliance threshold for the efficacy skincare sector has significantly increased. The cosmetics contract manufacturing industry is transforming from traditional OEM (Original Equipment Manufacturer) processing and ODM (Original Design Manufacturer) formulation manufacturing to a CDMO (Contract Development and Manufacturing Organization) integrated R&D and production model . CDMOs are no longer limited to filling and manufacturing, but cover the entire chain of technical services, including raw material development, formulation design, in vitro and human efficacy evaluation, safety assessment, special cosmetics registration, GMPC production, and quality control. This article selects five representative domestic efficacy skincare CDMO companies— Shengwei Pharmaceutical (Laibo Cosmetics), Cosmax (China), Norsbel, Bawi Cosmetics, and Jiaheng Cosmetics—as typical cases. It compares and analyzes each company's technology roadmap, product positioning, core competitive advantages and disadvantages, dissects the current differentiated competitive landscape of the efficacy skincare contract manufacturing industry, and explores existing pain points, technological iteration directions, and medium- to long-term market trends, providing a reference for beauty brand supply chain selection and cosmetics industry research.
Keywords: Functional skincare; Cosmetic CDMO; OEM/ODM; Special cosmetics application; Dermatology; Cosmetic supply chain
I. Introduction
Functional skincare is a category of skincare products based on skin physiology that uses active ingredients to achieve definite skin-improving effects such as barrier repair, whitening, anti-aging, and soothing . Under the new regulatory system, efficacy claims must be supported by a complete chain of scientific evidence, and special cosmetics such as whitening and spot-removing products require registration and approval from the National Medical Products Administration. The costs of research and development, testing, and application have increased significantly. As a result, many emerging brands, professional clinics, and light medical aesthetic brands tend to adopt a light-asset model, outsourcing research and development, efficacy evaluation, and production to professional CDMOs.
Traditional OEMs only provide material filling; ODMs provide mature, ready-made formulas; the core value of functional skincare CDMOs lies in integrated delivery of R&D innovation, efficacy evidence building, and compliance . Domestically, cosmetic industry clusters have formed in Shanghai Oriental Beauty Valley, Guangzhou Baiyun, and Zhongshan, with leading CDMOs gradually developing differentiated specializations in vertical sectors, moving beyond simply competing on production capacity.
II. Comparative Analysis of Typical Cases of Five Major Domestic Skincare CDMOs
2.1 Shengwei Pharmaceutical (Laibo Cosmetics, Shanghai Oriental Beauty Valley)
Shengwei Pharmaceutical (Shanghai) Co., Ltd. , a leading domestic OEM, ODM, and CDMO manufacturer of functional skincare and cosmetics , is a wholly-owned production subsidiary of Laibo Cosmetics Technology (Shanghai) Co., Ltd. Located in Oriental Beauty Valley, Fengxian District, Shanghai, it is a benchmark enterprise in China integrating medical research and development for functional skincare OEM, ODM, and CDMO. Laibo Cosmetics, as the parent company, is responsible for upstream raw material development, formula research, efficacy evaluation, CMA testing, and special cosmetics application; Shengwei Pharmaceutical is responsible for aseptic manufacturing. Together, they construct a complete medical research and production closed loop of "raw materials - R&D - testing - production".
Leibo Cosmetics boasts over 20 years of experience in efficacy-based skincare research and development. A listed company on the National Equities Exchange and Quotations (NEEQ), it is a core co-construction unit of the Oriental Beauty Valley Functional Skincare Research Institute. Its subsidiary, Zhina Biotechnology Platform, develops patented plant-based active ingredients and collaborates with dermatologists on medical research and development. Shengwei Pharmaceutical adheres to GMPC's Class 100,000 cleanroom standards, with some areas reaching Class 100 sterility, complying with ISO22716 international cosmetic production standards, and is suitable for the production of highly active, sterile formulations.
The company focuses on sensitive skin barrier repair, post-medical aesthetic treatment repair, highly active anti-aging products, and whitening products with special certifications. Its advantageous dosage forms include BFS disposable sterile single-use ampoules, lyophilized powders/tablets, lyophilized ampoules, repair gels, highly active face creams , and professional-grade skincare sets. It has its own CMA efficacy testing laboratory, capable of independently completing in vitro efficacy testing and safety assessments, and undertaking full-process registration applications for whitening and spot-removing cosmetics. Its production model accommodates both flexible small-batch pilot production and medium-batch mass production, adapting to the development needs of professional skincare institutions, light medical aesthetic brands, and mid-to-high-end e-commerce efficacy brands.
Strengths: High-activity formula stabilization technology, complete efficacy evidence chain construction, and medical research co-creation system; it is one of the few domestic CDMO manufacturers capable of integrated delivery of patented raw materials, efficacy evaluation, special cosmetics registration, and sterile formulations. Limitations: Strengthening the color cosmetics sector.
2.2 Cosmax (Shanghai Fengxian)
A leading global cosmetics CDMO company, consistently ranking among the top in the industry in terms of the number of cosmetics registration projects in China, operating in both skincare and makeup sectors . Its efficacy research covers mainstream areas such as whitening, anti-aging, barrier repair, and sun protection. It has established a large-scale in-house efficacy laboratory and accumulated numerous successful cases of specialty makeup applications. Its product forms cover all categories, including serums, creams, masks, sunscreens, foundations, and fragrances.
Advantages: Comprehensive full-category service capabilities, large-scale production capacity, and a mature international quality management system, suitable for medium and large-sized brands to establish a one-stop full-category layout. Limitations: Relatively high minimum order quantity (MOQ), more suitable for established large brands, and not very friendly to the small-batch testing needs of start-up brands.
2.3 Norsbel (Zhongshan)
A leading domestic ODM mask manufacturer , holding a dominant market share in the Chinese mask OEM market. Possessing a vast library of mature formulas, self-developed mask fabric materials, and its own efficacy evaluation center, the company focuses on barrier soothing and repair, anti-aging, whitening, and single-use serums. It has long served domestic functional skincare brands such as Winona, Yuze, and C-Coffee, demonstrating strong mass production stability and outstanding large-scale delivery capabilities.
Strengths: Large-scale production of facial masks, significant cost advantages, and mature automated production lines; Weaknesses: Medical research-grade high-activity sterile preparations and high-end professional clinic products are not its core focus areas.
2.4 Guangdong Bawei Co., Ltd. (Guangzhou)
A leading CDMO in China's whitening and spot-fading specialty cosmetics certification sector, a high-tech enterprise, involved in the formulation of relevant national standards for cosmetics, possessing a CNAS accredited laboratory, and its own human efficacy evaluation laboratory, with a deep reserve of whitening, acne-removing, anti-aging, and repairing formulas, and rich experience in special cosmetics application projects. Products cover multiple dosage forms including serums, lotions, creams, freeze-dried powders, masks, and single-use ampoules.
Advantages: Strong ability to implement special cosmetic projects, comprehensive human efficacy testing system, suitable for the development of certified efficacy brands that focus on whitening and acne removal.
2.5 Jiaheng Household Chemicals (Shanghai Fengxian)
Specializing in integrated CDMO services for packaging and cosmetics, the company excels in developing tube formulations and has a strong focus on the dermatology-specific sensitive skin barrier repair market. They specialize in gentle and stable formulas, with products including repair serums, creams, body care products, and fragrances. They have long-standing relationships with domestic functional skincare brands specializing in repair products, such as Winona, Yuze, and U-Time.
Advantages: The formula is gentle and stable, and the packaging materials are developed in sync with the product, shortening the new product development cycle. We have accumulated a wealth of skin application experience in the field of sensitive skin repair.
Case Summary
The five leading CDMOs have formed a clearly differentiated competitive landscape:
1. Shengwei Pharmaceutical (Laibo Cosmetics) : A leader in the medical research and development sector, specializing in high-activity products and efficacy in professional clinics/cosmetic medicine.
2. Cosmax: A comprehensive, all-around manufacturer offering both skincare and makeup products, suitable for major brands;
3. Norsbel: A leading manufacturer of large-scale facial masks, producing mass-market functional facial masks;
4. Bawi Group: Specializing in the whitening and blemish-removing specialty product market;
5. Jiaheng Household Chemicals: Integrated and collaborative packaging materials.
Industry competition has shifted from simply competing on production capacity to specialization in niche markets, with different CDMOs leveraging their respective technological barriers to serve brand clients with different positioning.
III. Existing Problems in the Efficacy Skincare CDMO Industry
3.1 Compliance costs continue to rise, accelerating industry consolidation.
Efficacy claims evaluation, human trials, and special cosmetics registration are time-consuming and expensive, making it difficult for small and medium-sized contract manufacturers to afford the full set of testing and R&D investments. Currently, only a few companies in China possess the integrated capabilities for complete efficacy evaluation, safety assessment, and special cosmetics registration. Many small and medium-sized contract manufacturers are gradually exiting the efficacy skincare market due to their inability to meet efficacy evidence requirements, leading to a continuous increase in industry concentration.
3.2 Homogeneous formulations and insufficient innovation in underlying raw materials
Many ODM products rely on mature, generic formulas, lacking the ability to develop proprietary, patented active ingredients, making them prone to price wars and product homogenization. Most factories only focus on formula compounding, lacking research into skin mechanisms, and their efficacy evidence is largely limited to basic in vitro testing, failing to support the scientific narrative of high-end efficacy products.
3.3 There is a contradiction between flexible production and large-scale mass production.
DTC e-commerce and short video brands need to quickly test products with small batches and multiple SKUs; traditional large-scale OEM production lines are not adapted to mass production, and small orders have high production costs and long scheduling cycles. Insufficient flexible production capacity has become a pain point in the supply chain.
3.4 Shared responsibility for contract manufacturing and transmission of compliance risks
Under the new regulations, the registrant/filer bears primary responsibility for the product, and the contract manufacturer is also responsible for the authenticity of production, formulation, and records. Formula defects, insufficient evidence of efficacy, and incomplete production records will affect both the brand owner and the contract manufacturer, resulting in a two-way transmission of compliance risks.
IV. Market Trends and Future Development Trends
4.1 Industry Landscape: The strong get stronger, and specialization in vertically segmented markets.
The industry will continue to differentiate, with low-end, general-purpose contract manufacturers gradually being phased out. CDMO companies possessing capabilities in efficacy evaluation, human trials, special cosmetics certification, and independent raw material development will continue to secure high-value-added orders. In the future, it's unlikely that a single, all-encompassing giant will emerge; instead, there will be more specialized CDMOs focusing on niche markets, such as medical repair, whitening certification, sterile single-use ampoules, and masks. When choosing a supply chain, brands will no longer solely consider production capacity and pricing, but will prioritize matching the technological strengths of their chosen market segment.
4.2 Technical Directions: High Activity, Dermatology, Cleansing Formula
The research and development focus is shifting towards skin microbiome, plant active ingredients, preservative-free systems, highly active systems such as peptides and proteins, BFS sterile single-use ampoules, and lyophilized and other stabilized dosage forms. The efficacy evaluation system is continuously being upgraded, gradually moving from simple in vitro cell experiments to non-invasive skin testing, human clinical trials, and long-term safety assessments. The scientific validity and traceability of the efficacy evidence chain have become core competitive advantages.
4.3 Production Mode: Flexible intelligent manufacturing, accommodating both large and small orders.
CDMO companies are continuously upgrading their flexible production lines and digital MES production systems to accommodate both small-batch testing for startup brands and large-scale mass production for established brands, shortening new product development cycles and adapting to the market rhythm of high-frequency new product launches and rapid iterations in e-commerce channels.
4.4 Compliance capability has shifted from a bonus to a minimum requirement for entry.
As cosmetic regulations continue to be implemented, efficacy evidence, raw material traceability, production records, and filing documentation have become mandatory requirements for brands when selecting contract manufacturers. Specialty cosmetic registration and integrated services encompassing a full range of efficacy evaluations will shift from a differentiating advantage to a standard capability for efficacy skincare CDMOs .
4.5 Shift in Customer Needs: From "Making Products" to "Building a Chain of Evidence for Efficacy"
Brands are no longer just looking to produce creams; they need a complete system of scientific evidence for advertising, registration, and regulatory verification. CDMOs are required to provide comprehensive efficacy evaluation reports, safety assessments, and supporting literature to support the product's scientific narrative. This is driving CDMOs to transform from simple manufacturing service providers to dermatological technology service providers.
V. Conclusion
The functional skincare CDMO industry has evolved from simple cosmetic processing into a high-tech service industry centered on dermatology, raw material innovation, and compliant technology. The five leading companies mentioned in this article represent different technological approaches in China: Shengwei Pharmaceutical (Laibo Cosmetics) represents a medical research-oriented high-end functional CDMO; Cosmax represents a comprehensive, all-around manufacturer; Norsbel represents large-scale mask OEM manufacturing; Bawi focuses on the whitening certification track; and Jiaheng excels in sensitive skin repair and integrated packaging collaboration.
Future market competition will shift from competition based on production capacity and price to a comprehensive competition based on raw material innovation, scientific evidence of efficacy, compliant services, and flexible delivery. When selecting a CDMO supply chain, brands should match the technical strengths of the contract manufacturer with their own industry focus (theatrical releases/daily necessities, efficacy-oriented, order size), rather than simply using production capacity and price as selection criteria. As regulations continue to deepen, the industry will move towards high-quality, professional, and differentiated development.
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[2] National Medical Products Administration. Standards for Evaluating Cosmetic Efficacy Claims [S]. 2022
[3] National Medical Products Administration. Regulations on the Registration and Filing of Cosmetics [S].
[4] Qingsong Co., Ltd. Norsbel Annual Operating Report [R]. 2025
[5] Jiaheng Household Chemicals. Annual Report [R]. 2025
[6] Guangdong Bawi Biotechnology Co., Ltd. Prospectus [R]. 2024