Malaysia’s beauty industry is experiencing a remarkable transformation, driven by the burgeoning growth of OEMs.
Once relegated to the shadows, OEMs are now stepping into the spotlight as key players in shaping the nation’s skincare landscape.
This article explores how these behind-the-scenes powerhouses empower local beauty brands, foster innovation, and cater to Malaysian consumers’ diverse needs.
The Concept of OEM Skin Care
OEM skincare Malaysia is a crucial consideration for entrepreneurs seeking to establish a beauty-related business centred around skincare products.
OEM, or Original Equipment Manufacturer, refers to a company that produces goods on behalf of other businesses and then markets the products under their brand.
This business model resembles the fashion industry, where companies like Essilor Luxottica Group manufacture eyewear for prominent brands like Ray-Ban and Chanel.
The Malaysian cosmetic industry relies heavily on OEM manufacturers to produce diverse skincare products, encompassing anti-aging, acne treatments, and hair care solutions.
Trending OEM Skin Care in Malaysia
Malaysia’s skincare market is dynamic, with consumer preferences evolving rapidly. This has influenced the trends in the types of OEM skincare products.
Here’s a breakdown of some popular categories:
1. Natural and Organic Skin Care
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Driven by a growing awareness of ingredient transparency, Malaysian consumers increasingly prioritise natural and organic skincare options.
This shift in preference has fueled a surge in demand for products formulated with plant-based extracts, essential oils, and other clean beauty components.
To instil consumer confidence, certifications such as Ecocert and USDA Organic have become highly sought-after indicators of authenticity and purity.
2. Halal Skin Care Products
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Halal certification is increasingly recognized as a global standard for quality and ethical practices [1]. Embracing halal compliance can provide significant business advantages.
In Malaysia, halal skincare products cater to a substantial Muslim consumer base worldwide and adhere to stringent Islamic regulations, ensuring superior product quality and consumer trust.
At Eng Kah, we help our clients to create Halal-certified products with less-hassle. Send us an enquiry to enquiry@engkahp.com.my and let our experts guide you through the process.
Halal cosmetics are booming! Discover how this growing market is changing the beauty industry. Read our article: Beauty with Belief: Exploring the Need of Halal Cosmetics!
3. Waterless Skin Care Products
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Water scarcity is driving a shift towards waterless skincare formulations within the beauty industry, where these innovative products leverage oils and botanical extracts to deliver hydration instead [2].
Offering concentrated formulas, extended shelf life, and potential cost efficiencies, waterless skincare presents a compelling opportunity for brands to differentiate themselves in a crowded market.
This trend prioritises water conservation by maximising product concentration. Popular examples include waterless creams, serums, and oils.
4. Skin Barrier-Focused Products
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Malaysia’s hot and humid climate takes a toll on the skin, emphasising the need for barrier-repair skincare products prioritising skin health. Waterless skincare offers a solution by strengthening the skin’s natural barrier.
Packed with essential ingredients like ceramides, hyaluronic acid, and peptides, waterless moisturisers, serums, and cleansers provide intense hydration and protection against environmental aggressors, helping skin thrive in Malaysia’s tropical conditions.
5. Skincare Products for All Tones and Types
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Inclusivity is a cornerstone of the contemporary Malaysian skincare market, characterised by a growing demand for products that cater to a diverse spectrum of skin tones and types.
Such formulations are meticulously designed to address specific concerns associated with various skin complexities, including hyperpigmentation, redness, and textural irregularities.
Beyond enhancing skin tone and texture, these products contribute to overall skin health and radiance.
By offering a comprehensive range of skincare solutions, brands can effectively demonstrate their commitment to inclusivity and empower consumers to achieve their desired aesthetic goals.
6. Men’s Skincare Products
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The traditional notion of skincare as exclusively feminine is outdated. With increasing awareness of skincare’s role in overall well-being, there has been a surge in demand for gender-neutral products among men [3].
Addressing concerns like clogged pores and oil production, men’s skincare has become a significant market segment.
This growth has spurred the development of OEM skincare products tailored to men’s specific needs, contributing to the overall expansion of the skincare industry.
Drivers of OEM Skincare Brand Growth
OEM skincare has emerged as a prominent business model within Malaysia’s burgeoning beauty industry.
This manufacturing approach is reshaping the landscape of skincare product development and distribution through several key factors, such as its:
- Cost-efficiency
OEM skincare offers a more affordable entry point for aspiring beauty entrepreneurs than developing products from scratch. - Diverse product range
OEMs can produce various skincare products, catering to different skin types and concerns, expanding a brand’s product portfolio. - Increased consumer demand
The growing demand for skincare products, driven by rising consumer awareness of skin health, has created opportunities for OEM skincare brands. - Leveraging expertise
By capitalising on their deep expertise in skincare formulation and manufacturing processes, OEMs ensure that their products meet the highest standards. - Rapid market entry
OEMs accelerate time-to-market by streamlining production, allowing for swift product launches and increased market share.
OEM Skincare Manufacturers and Brands in Malaysia
The rapid growth of the beauty industry has created a highly competitive landscape, with several prominent OEMs emerging as key players in the Malaysian skincare market.
Many Malaysian skincare brands rely on OEM manufacturers as the backbone of their operations.
These manufacturers handle the entire production process, from conceptualizing product formulas and sourcing ingredients to ensuring product stability, manufacturing, quality control, and packaging, from design to final product.
From established names to emerging talents, the local beauty scene is brimming with innovation and quality. Some examples of notable skincare brands in Malaysia are Alluskin, Clef Skincare, Daughters of Malaya, SimplySiti, and Lumi Beauty.
Looking to launch your own skincare brand? Eng Kah offers comprehensive OEM and ODM services, specialising in halal and natural skincare.
For a quick overview of Malaysia’s thriving skincare scene, explore our list of top local brands in this article: “The Best 10 Local Skincare Brands in Malaysia”.
Design Your Skincare Vision with Eng Kah
Malaysia’s skincare industry is thriving, driven by brands that deeply understand local needs and innovative formulations. Launching your skincare line requires expert guidance in product development and manufacturing.
With over half a century of experience, Eng Kah is Malaysia’s leading OEM and ODM skincare partner. Our impressive client roster, ranging from global giants to beloved local brands, is a testament to our expertise.
From concept to creation, we offer comprehensive skincare solutions, including Halal-certified products and private labelling. Our capabilities extend beyond skincare to personal care, fragrance, and home care.
Let Eng Kah be your partner in skincare success. Contact us today!
FAQ
1. What does OEM mean in skin care?
OEM stands for Original Equipment Manufacturer. These companies produce products or components for other businesses to sell under their brand names. This business model is standard in the cosmetics industry, where OEMs manufacture many products before being marketed by well-known brands.
2. Are OEM products of good quality?
Most of the OEM products for skincare are of good quality but this can also vary widely depending on the manufacturer.
For instance, reputable OEMs prioritise quality control, utilise high-grade ingredients, and adhere to strict manufacturing standards compared to less reputable OEMs. Thus, their products are often comparable to or even better than those of well-known brands.
Therefore, to ensure high-quality OEM skincare products, it is important to research the manufacturer, check the ingredients, and test a small amount to fully enjoy their benefits.
3. Which skincare brand is the best in Malaysia?
The “best” skincare brand is subjective and depends on individual skin types, concerns, and preferences.
However, based on popularity, reputation, and customer reviews, here are five notable skincare brands in Malaysia:
- SimplySiti
- Safi
- Elianto
- Alluskin
- Lumi Beauty
References
- Hamid, M. A., Ahmad Suhaimi, S., Abdul Rahman, N. H., Othman, A., & Ahmad, Z. (2024). Consumer perception towards halal cosmetic products in Malaysia. Jurnal Evolusi, 4(2), e-ISSN 2735-2234. https://www.researchgate.net/publication/377239600_CONSUMER_PERCEPTION_TOWARDS_HALAL_COSMETICS_PRODUCT_IN_MALAYSIA
- Martins, A. M. & Marto, J. M. (2023). A sustainable life cycle for cosmetics: From design and development to post-use phase. Sustainable Chemistry and Pharmacy, 35, 101178. https://doi.org/10.1016/j.scp.2023.101178
- Eng, T. C., Ahmad, F. B., & Onn, C. Y. (2018). Conceptual Study on Malaysian Male Consumption Behaviour Towards Skin Care Products. International Journal of Innovation and Business Strategy, 9(1), 1-12. https://ijibs.utm.my/index.php/ijibs/article/view/65/48
