The industry of health and beauty products is evolving every year. Many individuals are increasingly focusing on their appearance and well-being: hitting the gym, adhering to proper nutrition, and paying attention to the quality, beneficial properties, and composition of various products.
Consumers particularly focus on the condition of their skin, as maintaining the health and beauty of the skin is more challenging now than a few decades ago. Frequent stress, harmful habits, weakened immunity, environmental pollution, and other factors often have a negative impact on the condition of the epidermal cells. Therefore, there is a growing demand among consumers for skin care cosmetics.
The global market volume for cosmetic products is also dynamically increasing, indicating that skin care cosmetics manufacturing can become a highly profitable and successful business. However, for aspiring entrepreneurs, starting their own production from scratch is a challenging task. Hence, the popularity of private label skin care cosmetics manufacturing is rising among business owners.
The emergence of such a collaboration format has been a powerful catalyst for the development of the global beauty market. This material will explain how the private label skin care cosmetics manufacturing industry can help create a successful business.
Exploring the Private Label Industry
Private label manufacturing is a collaborative format where a retail seller can purchase products created by a partner’s production and subsequently sell them under their own brand. The first such deals were made in the 19th century, and since then, the popularity of private label products has only grown.
Currently, private labels constitute about 15-20% of all consumer goods sales, including cosmetics, food products, household goods, and many others. According to DataHorizzon Research, in 2022, the global market volume of private label brands was $742.1 billion USD. Experts forecast that the average annual growth rate will be 10.8%, reaching $2049.7 billion USD by 2032.
Significantly, European countries occupy a considerable share of the private label market. Many companies, in particular, engage in private label skin care cosmetics manufacturing. The enduring popularity of this collaboration has several reasons. Here are the main ones:
- Flexibility and Customization: Company owners utilising private label manufacturing often interact directly with customers, receive feedback, and can promptly make changes to their products based on market trends. The client also has the right to control all production processes and adjust the composition, appearance, and other parameters of their product.
- Economic Feasibility: Manufacturing private label products is often cheaper than creating goods under well-known brands. Entrepreneurs can offer their products to consumers at lower prices, enhancing the popularity of such items. Additionally, the brand owner saves significantly on skin care cosmetics manufacturing since they utilise the production facilities of the partner instead of setting up all processes from scratch.
- High Quality: Despite the relative affordability of private label products, they often match the quality of more expensive counterparts. Private label skin care cosmetics manufacturing must adhere to all standards and requirements, and the sale of products is only possible after obtaining the necessary certificates. This guarantees the high quality and safety of cosmetics.
Navigating Product Development and Formulation
One of the primary and most crucial stages in creating a successful cosmetic product is formulating the recipe. If you have experience and knowledge in this field, you can create a formula yourself. Otherwise, private label skin care cosmetics manufacturing can help, usually employing experienced technicians ready to offer a ready-made recipe or create a unique formula based on client preferences.
To ensure the product is of high quality and effective, special attention must be given to selecting raw materials. It is essential to consider the supplier’s reputation, the quality and origin of the raw materials, their beneficial properties, the sustainability of extraction methods, and other factors.
Here are some popular ingredients in skin care cosmetics manufacturing and their purposes:
- Plant Extracts possess antioxidant, anti-inflammatory, antibacterial, and other beneficial properties.
- Vitamins A, E, C, and Others contribute to natural collagen production, protecting the skin from premature ageing and UV radiation.
- Hyaluronic Acid moisturises the skin, makes it more elastic and firm, and helps maintain the skin’s natural barrier.
- Retinol rejuvenates the skin; also used for exfoliating dead skin cells and accelerating skin regeneration.
- Ceramides protect the skin from the negative effects of the environment and help maintain the water balance in epidermal cells.
- Salicylic Acid helps reduce inflammation, often used to combat hyperpigmentation, psoriasis, and other dermatological issues.
- AHA Acids, Such as Glycolic, Lactic, and Tartaric: Contribute to skin tone alignment, exfoliation of dead cells, and collagen production in the body.
- Niacinamide has anti-inflammatory properties; the component is also crucial for maintaining the water balance in the skin.
Certainly, these are not all the ingredients you can use to create cosmetic products. But regardless of the raw material chosen, the main thing is its quality and effectiveness, as the safety and future success of the finished product depend on it.
Attractive Packaging Design and Branding
In skin care cosmetics manufacturing, the visual aspect of the product is no less important. Product branding and packaging design often play a key role in capturing consumer attention and influencing subsequent purchase decisions.
To develop commercially successful packaging, it is essential to thoroughly study your target audience. This involves not only the gender, age, and social status of buyers but also their preferences, desires, fears, problems they face, and motives for making specific decisions.
Branding should be based on the results of such research. This consideration is crucial when choosing the colour palette, fonts, visual elements, and brand names. Additionally, the design should align with the brand’s positioning. For instance, premium segment cosmetics often feature subdued tones and minimalism in packaging, whereas mass-market products may incorporate more graphic elements and vibrant colours.
Attention should also be given to the material, shape, and size of the packaging, as this influences the initial impression of the product and its usability. In private label skin care cosmetics manufacturing, you can choose from various packaging options such as cardboard boxes, films, plastic bottles, glass bottles, jars, tubes, and blister packs. Typically, the choice of packaging depends on the specific type of cosmetic product.
It is important to remember that packaging serves a protective function; it must be of high quality and durable to prevent the product from spoiling prematurely and to resist the influence of the external environment.
To ensure maximum safety and compliance with widely accepted standards, you must also meet labelling requirements. Typically, the packaging should include manufacturer details, product name, product composition, usage recommendations, warnings, expiry date, batch number, and certificates confirming the quality and safety of the product.
Establishing Supply Chains and Partner Relationships with Manufacturers
To streamline production processes, create supply chains, efficiently distribute products, and build strong relationships with partners, attention must be paid to many details.
Here are some of them:
- Finding reliable suppliers: You must be confident in the quality, safety, and effectiveness of the raw materials used. Therefore, it is essential to find a trustworthy partner with a good reputation. You can request documents from the supplier confirming the origin of the raw materials. Additionally, a laboratory should be employed in skin care cosmetics manufacturing to further verify and analyse cosmetic ingredients.
- Ethical and sustainable practices: An increasing number of consumers pay attention to how raw materials are sourced, preferring manufacturers who adhere to ethical and sustainable practices. This means that the manufacturer cares about the ecology and renewability of natural resources used in the creation of cosmetic products.
- Inventory management: You also need to develop a strategy for controlling and optimising the inventory of materials, ingredients, and finished products. This involves maintaining records of raw material supplies, monitoring storage conditions, and optimising production processes to minimise excesses or shortages in inventory.
- Logistics optimization: To improve the efficiency of raw material supply, storage, and delivery of finished products, it is necessary to optimise logistics chains. This optimization often includes the analysis of delivery routes, improvement of warehouse logistics within inventory management, and the use of technologies to track vehicles. This also affects relationships with customers and partners as delivery speed increases.
Marketing and Promotion of Private Label Products
Even in the early stages of private label skin care cosmetics manufacturing, it is crucial to develop a smart strategy for promoting your products. You can use some popular marketing tools, such as:
SEO promotion is a method of generating organic traffic by increasing the brand’s website ranking in search engine results. This is a good way to attract warm customers who are already interested in purchasing skin care cosmetics.
Collaboration with influencers: Influencers typically have a loyal audience and are trusted in society. Therefore, collaborating with bloggers, cosmetologists, renowned experts, and celebrities can help increase brand awareness and gain consumer trust.
Social media advertising: In recent decades, advertising on social media has become one of the most effective promotion channels. With it, you can attract both organic and paid traffic. Targeted social media advertising has many advantages and allows you to reach a very specific and narrow target audience.
Traditional promotion methods: For the popularisation of skin care products, you can also use more traditional promotion methods, such as radio, television, or print advertising, billboards and spotlights, advertising on public transport, and in retail outlets, among others.
These tools help increase brand recognition, stimulate sales, and enhance customer loyalty.
Conclusion
Private label skin care cosmetics manufacturing is a promising business direction with many advantages. This collaboration format allows for resource savings, greater flexibility, and the maintenance of high product quality.
For your business to be successful, attention should be paid to the choice of raw materials, the technologies used, packaging design, logistics optimization, and brand promotion methods. If you find a reliable manufacturing partner and dedicate time to important details, you can create a commercially successful and popular skin care product.
