KM Pharmaceutical targets global oral care market with Pororo products

PYEONGTAEK, Gyeonggi Province — KM Pharmaceutical, a hygiene product developer has created a sensation in Korea’s oral care market with its Pororo-themed toothpastes and toothbrushes.

The company, which is based in Pyeongtaek, Gyeonggi Province, is now seeking to replicate that success overseas. KM Pharmaceutical already exports to 12 countries as an original equipment manufacturer (OEM) and original development manufacturer (ODM) specializing in oral care, hair care and beauty products, but the company believes its overseas business still has significant room to grow.

The company has recently begun operating its second manufacturing plant in Pyeongtaek which is dedicated to hair care and beauty products. The expansion readied stronger exports for the company which aims to hit an annual sales goal of 100 billion won ($72 million).

“The second factory is now at full capacity and the first one about 70 percent. But considering the volume of orders we are receiving, the first factory will probably have to run at full speed as well,” said Hwang Min-young, production director of KM Pharmaceutical.

The company’s main businesses are OEM and ODM services for client firms, such as producing Pororo lineup, and manufacturing its private brands, including hair care label Zerocipe and oral care label Foamgle. The OEM and ODM volume now occupies more than 50 percent of the entire operation, with the Pororo lineup being KM Pharmaceutical’s exclusive products using the intellectual properties of animation content developer Iconix in Korea.

KM Pharmaceutical’s overseas client base is growing. One of its recent clients is Swiss oral care company Weleda, for which KM began production early last year.

“Weleda has never manufactured outside its prime plant in Germany for the past century," Hwang said. "We are the first company outside Germany to produce for Weleda, including toothpastes for children and adults."

KM Pharmaceutical is currently in talks for an OEM and ODM deal with companies in the United Kingdom, Japan, the United States and Malaysia, with Zerocipe and Foamgle undergoing discussion for a market launch at Amazon and TikTok shop in the countries. The fact that the Korean company is catering to large-size pharmaceutical firms in Korea with OEM and ODM services has been a significant part of earning trust from potential partners, Hwang said.

“We have passed ISO standards, good-manufacturing-practices, and conditions for the U.S. Food and Drug Administration. But another thing we stand out for is that we are doing many OEM orders for large-size firms here," Hwang said.

"That means our manufacturing practices and end-products passed evaluations from our clients each year. Based on that fact, the foreign clients understand our OEM and ODM capabilities are being consistently verified. K-beauty and Korean oral care products generating buzz in global markets also adds to the foreign firms’ interest in us,” Hwang said.

KM Pharmaceutical’s goal is to become the country’s second-tier OEM and ODM company, behind industry giants Cosmax and Kolmar Korea. Its short-term goal is to achieve 50 billion won in annual sales by 2028, and later to reach 100 billion won.

KM Pharmaceutical President Brian Baik is optimistic about the goals. The company’s productivity this year jumped 11 percent from last year and its rising number of clients has pushed the firm’s monthly production volume to 2.1 million for oral products, 1.7 million for hair care products and 400,000 for beauty products. By 2028, the company expects its overall production capacity will increase by up to 150 percent from current capacity.

One of the opportunities KM Pharmaceutical is focusing on is the introduction of a new core ingredient for toothpaste. The company said hydroxyapatite is increasingly being considered overseas as an alternative to fluoride amid health concerns over excessive fluoride exposure.

“Fluoride toothpastes are widely used in Korea and even recommended by doctors. But that does not mean fluoride is completely risk-free,” Baik said. “The permitted fluoride content in toothpaste was initially limited to 1,000 parts per million (ppm) and was later raised to 1,450 ppm. Because toothpaste is used several times a day, some consumers may be concerned about the cumulative effects of fluoride exposure. There should be alternatives for people who prefer fluoride-free toothpaste.”

Demand for low-fluoride and fluoride-free toothpastes has been growing in the U.S. and Europe, but the trend is only beginning to emerge in Korea, where regulations on the use of hydroxyapatite in toothpaste have yet to be established.

KM Pharmaceutical said it plans to consult with the Ministry of Food and Drug Safety on whether hydroxyapatite can be used as a main ingredient in place of fluoride.