South Korean cosmetics manufacturer Cosmax announced Wednesday that it has begun construction of a new production plant for its Thai subsidiary, aiming to further strengthen its foothold in the fast-growing Southeast Asian market.
The company held a groundbreaking ceremony for its new plant in Bang Phli, Thailand, on March 27. With an investment of 1.5 billion baht ($43.9 million), the new facility will be nearly four times the size of its current Thai plant.
Set to begin full-scale operations in September 2026, the new plant will have an annual production capacity of 230 million units, tripling the current output of Cosmax's Thai subsidiary.
“This expansion allows us to meet the diverse needs of Southeast Asian customers while strengthening our position as a K-beauty platform," Kang Min-gu, head of Cosmax Thailand, said. "By enhancing our manufacturing capabilities, we aim to establish Thailand as a key beauty manufacturing hub in Southeast Asia.”
Designed as a smart, eco-friendly factory, the facility spans 35,940 square meters across four floors, and incorporates a carbon filter system to reduce volatile organic compounds emissions.
Additionally, it adheres to the zero-water-waste policy by reusing wastewater from production processes and reinforcing recycling measures to minimize environmental impact.
The new plant will comply with international quality standards, including ISO 22716, and also plans to obtain certifications from the Thai FDA, halal and vegan organizations, ensuring the highest levels of safety and quality.
Thailand, the largest cosmetics market among Association of Southeast Aisan Nations member states, has seen a surge in demand for beauty products and an increase in new influencer-driven brands.
Data from the Korea Trade-Investment Promotion Agency predicts that Thailand’s cosmetics market is expected to reach $812 million this year, an 11.5 percent increase from 2023.
With the new facility, Cosmax aims to sustain its growth momentum through high-quality manufacturing.
Last year, Cosmax Thailand recorded 43.5 billion won in revenue, marking a 70.4 percent year-on-year growth. Over the past three years since 2022, Cosmax Thailand's average annual growth rate has reached 51 percent.
Currently, Cosmax operates 19 production plants across five countries, including Korea, China, the United States, Indonesia and Thailand.
Starting next year, all food, pharmaceutical and cosmetic products exported to Indonesia must obtain halal certification. Cosmax's existing plants in Indonesia and Thailand have already secured this certification, providing the company a competitive advantage in the market.
hykim@heraldcorp.com
