Sustainability in Focus: Circular Economy Approaches for OBM

This chapter explores how Original Brand Manufacturing (OBM) firms are uniquely positioned to lead the transition toward a circular economy by embedding sustainability across their value chains. Unlike OEM or ODM models, OBM allows firms to control design, branding, and lifecycle management—enabling circular strategies such as eco-design, ethical sourcing, and extended producer responsibility. Through case studies and theoretical insights, the chapter outlines how OBM firms integrate environmental, social, and governance (ESG) criteria into supplier selection, drive innovation through design-led approaches, and leverage digital tools for traceability, lifecycle monitoring, and emissions reduction. Focusing on COSMAX, a global leader in sustainable cosmetics manufacturing, the chapter illustrates how ESG integration—spanning packaging, renewable energy, and global compliance—can transform an OBM firm into a circular pioneer. It also examines enabling ecosystems, policy incentives, and cross-sector partnerships that support OBM firms’ circular transformation, particularly in Asia. The chapter concludes that long-term competitiveness in the OBM era requires aligning sustainability with brand identity, supply chain transparency, and innovation. By leveraging circular economy principles, OBM firms can not only meet rising global expectations but redefine value creation in regenerative and socially responsible terms. Sustainability is no longer a constraint—it is a strategic frontier for OBM leadership.