Cosmetics Manufacturing and a Personal Foray Into the World of Beauty

“A little powder and a little paint…” 

When I was a child, my grandmother coined a cute little saying, “A little powder and a little paint makes a girl look what she ain’t.” Clever as it was, I didn’t think about it much for a long time. But it stuck with me into adulthood, and this saying circuitously shaped my eventual 30-year career in the beauty industry. 

What granny was ultimately trying to convey was the “little” part—the subtlety and artistry of makeup. She told me later, as a teen when I came out of the bathroom wearing bright blue eyeshadow and hot pink lipstick, that a lady should use makeup as a way to enhance her natural beauty and be applied so that one couldn’t even tell you were wearing makeup. I didn’t listen. Because these shades were the trend. And trends rule. Especially in the world of cosmetics and fashion.

The cosmetics manufacturing industry covers a broad scale of products. Widely labeled “cosmetics,” these products include color cosmetics, such as mascara and foundation, skincare cosmetics like cleansers and moisturizers, hair care products, and toiletries such soap and bubble bath, and even include such products as nail polish and perfumes. Navigating this huge arena as an entrepreneur has many challenges, as the trends and the market shape-shifts continually.

Cosmetics Manufacturing Market Growth

The global beauty and cosmetic industry was valued at a staggering $482.8 billion in 2021 and it’s not slowing down as it is expected to expand at a compound annual growth rate (CAGR) of 7.7% from 2022 to 2030. 

One of the primary factors driving market growth is the rising consciousness of consumers about their appearance. Personal care products such as color cosmetics are becoming an integral part of daily grooming among millennials. The introduction of cosmetics with natural, non-toxic, and organic ingredients has also been boosting the market growth.

Today’s cosmetic industry is a far different place than it was just ten years ago. The growth of direct-to-consumer brands, enabled by social channels, email marketing and shopping apps, has seen them bypass big label beauty corporations. Where does that leave you, the entrepreneur, in this vast landscape?

The Private Label Cosmetics Manufacturing Solution

“If I had only known then…” Well, I didn’t. I chose to open and operate two hair salons and had no clue about the cosmetics industry at the time. I carried the finest products that I could find, including Aveda, MOP and Keune, and did a damn good job of selling them, with 20% of my gross income being retail sales. But what if I had decided to choose a private label manufacturer to create my OWN line of shampoos, conditioners and makeup? We’ll never know because I didn’t know then the benefits of this avenue.

Speaking of Aveda, purchased by Estée Lauder in 1997 for a cool $300 million, this product line was my vanguard into the industry. The vision of the founder, Horst Rechelbacher (rest in peace, dear sir), was so inspiring that it catapulted me into my entrepreneurship in the beauty industry and I never looked back. Could I have created a private label product line and done half as well as Horst? No regrets but, again, we’ll never know.

The cosmetics manufacturing process is highly challenging and competition in the worldwide cosmetics market is intense. Change is the only constant in consumer trends, and regional specificities, high raw materials costs and countless regulations add complexity. But utilizing a private label cosmetics manufacturing laboratory and launching your own line of products can catapult your new or existing business into a “sky’s the limit” success.

What are the main advantages of a private label cosmetics line?

Marketing And Branding Control – Because you own the brand and the product, you can dictate every aspect of your new business. You get to decide who can sell your product and where to sell it. You get to decide how to promote and market your product as well.

Full Product Design Control – As the brand owner, you get to decide on the design, the packaging and the logo. Every aspect of the product design and creation is under your control. 

Pricing Control – When you sell other people’s products, you have very little control over the price because there are many other retailers selling the exact same product. Shoppers can and will comparison shop for the lowest price. With your own brand however, you set the price.

High Margins – Selling private label products carries the highest margins compared to other e-commerce business models.

Finding a cosmetics manufacturer for your business can be tricky. There are many factors to consider before making the big decision, such as what type of product you need, how much you’re willing to spend on manufacturing, and where you want it manufactured. However, despite the challenges of the current climate, it’s an exciting time for anyone considering entrepreneurship within the cosmetics industry. 

If you’ve done any research into private label manufacturing, chances are, you’ve already searched online for a supplier—a reputable, accessible company with which you can build a mutually-beneficial relationship. In your search, you probably found some suppliers based overseas, especially in China. 

While these suppliers may offer lower pricing, imported cosmetics don’t always meet US purity requirements and other legal standards. Going this route could expose you to inconsistent products, customer complaints, or even lawsuits. There is no reason to take this chance when there are laboratories here in the US that offer cutting-edge research and state-of-the-art manufacturing which combine to formulate high quality products.

The Top Benefits of Cosmetics Manufacturing in the US:

• Higher standard of quality and labor

• Easier to communicate and accessible, if face to face meetings or site inspections are required

• Carrying a “Made in…” that identifies a western country is increasingly more desirable from a consumer’s point of view

• Western countries are more heavily regulated and therefore it is straightforward to identify reputable manufacturers

• Quicker delivery times

• There is greater security and recourse when it comes to payment

You can best navigate the waters of the private label cosmetics manufacturing market by partnering with a state-of-the-art manufacturing facility. There are many such manufacturers to choose from. Skin Care Manufacturing by BL Biolab has a beautiful, new facility that boasts over 75,000 square feet and they are GMP and FDA certified, saving you from all of the tedious work necessary in conforming to industry safety standards. With high-quality ingredients and pharmaceutical grade formulas, their in-house R&D team and testing facilities can help you create and test your own custom formulations. 

The advantages of creating a private label skin care line are endless. If I had chosen this route back when I was a salon owner, my life would perhaps have turned out a little (or a lot) different. But I love to see other people in this industry succeed and so sharing this information is of personal importance to me. Choose your manufacturer wisely and enjoy the ride to success!