Thinking about launching a beauty brand but stuck on whether to go private label or custom formulation?
You’re not alone!
It’s one of the first big decisions that can shape the future of your brand. And it’s a decision that none take lightly.
On the one hand, you have private label: Ready-made formulas that are quick to market, cost-effective, and require minimal hassle.
On the other, there's custom formulation: Products crafted from scratch, tailored to your unique vision, offering complete control but requiring more time and investment.
Both are great options, but sometimes, one might be more suitable to you and your vision than the other. So by the end of this guide, you’ll have a clear understanding of private label and custom formulations and which path best aligns with your brand goals.
What is private label?
Private label skin care or cosmetics refers to pre-made skincare or makeup formulations you can customize with your own branding. Think of it as a "plug-and-play" model—you select products from an existing catalog, add your branding or logo, choose packaging designs, and boom, you’re ready to hit the market! Quite often, this means working directly with private label skincare manufacturers who provide these products and services. With Blanka, you get access to hundreds of private label beauty products without the hassle and expense of the large cosmetic manufacturers. Plus, they handle the dropshipping to your customers.
This approach is perfect for entrepreneurs who want to minimize the complexities of product development while maximizing speed to market. It allows you to focus more on building your brand, marketing, and creating an exceptional customer experience without getting bogged down in the nitty-gritty of formulation science.
How it works
The private label route is the quicker and easier option of the two. Here’s a simplified version of how it works when you work with a private label partner:
- Selection: Choose from a range of pre-formulated products.
- Branding: Customize packaging, labeling, and sometimes even fragrances.
- Go to market: Launch your custom-branded products with quick production timelines.
Who private label is best for
Private label is best suited for entrepreneurs, existing brands, and startups. Some of the reasons you may choose private label over custom formulations are:
- Launch quickly: Perfect for entrepreneurs who want to bring products to market fast without the lengthy development process.
- Test the market: Ideal for startups looking to validate their brand concept with minimal risk before scaling up.
- Business expansion: Great for existing brands wanting to diversify product lines without high R&D costs.
- Increased revenue: For business owners like makeup artists or salon owners, interested in additional revenue streams.
- Prioritizing affordability, scalability, and simplicity: Suitable for businesses focused on growth and quick adaptability in the beauty industry.
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Reduced risk and cost: Many private label beauty suppliers and services like Blanka feature zero order minimums keeping the costs and risks low.
Private label pros
- Fast turnaround time: Products can be ready in days or weeks depending on the volume needed, helping you seize market opportunities quickly.
- Lower upfront costs: No need for expensive R&D, laboratory testing, or extensive product trials since the formulas are ready for use.
- Easy to scale: As demand grows, scaling production is straightforward with an established manufacturer and partner like Blanka.
Private label cons
- Limited control over the formula: You can’t modify the core ingredients or formulation, limiting customization to branding or minor adjustments.
- Products may not be 100% unique: Since other brands can access the same base formulas, differentiation relies heavily on branding and marketing efforts.
What is custom formulation or custom beauty?
Custom formulation is the opposite of private label. Instead of starting with an existing formula, you collaborate with cosmetic chemists to develop a unique product tailored to your brand’s vision.
This option is ideal for brands that want to innovate and stand out in the crowded beauty market. With custom formulation, you can create exclusive products that reflect your brand's values, cater to specific customer needs, and explore unique ingredient combinations.
💡Did you know Blanka Labs offers custom formulation, creating makeup dupes, and more? Speak with one of our beauty experts today. Learn more
How it works
Custom formulation will require more investment with time, money, and research. Here’s a simplified breakdown of the process:
- Concept development: Start with your product idea, defining key attributes like texture, performance goals, and target audience.
- Formulation: Work closely with a cosmetic chemist to select ingredients and develop a custom formula.
- Testing: Conduct safety, stability, and efficacy testing to ensure the product meets regulatory standards and performs as intended.
- Refinement: Based on testing feedback, refine the formula until it aligns with your vision.
- Production: Once finalized, the product moves into full-scale manufacturing and is ready for market launch.
Who custom formulation is best for
Custom formulation offers flexibility and control, making it the go-to choice for brands aiming to carve out a niche with innovative products.
- Innovative brands: Perfect for companies with a strong product vision looking to disrupt the market with unique offerings.
- Businesses seeking exclusivity: Ideal for brands that want proprietary formulas no other competitors can replicate.
- Long-term growth strategists: Great for entrepreneurs willing to invest in R&D to build a differentiated product portfolio.
- Sustainability-focused brands: Best for businesses that want to control sourcing, sustainability practices, and ingredient transparency.
Custom formulation pros
- Complete control over product formulation: Tailor every aspect of the product, from active ingredients to texture and fragrance.
- Opportunity to create proprietary, innovative products: Stand out with formulations that can't be found elsewhere in the market.
- Strong brand differentiation: Build a unique identity that resonates with consumers seeking something new and exclusive.
Custom formulation cons
- Higher costs for development, testing, and manufacturing: Significant investment required for R&D, certifications, and production.
- Longer timelines from concept to launch: Extended product development cycles due to formulation, testing, and regulatory approvals.
- With Blanka Labs, these risks are drastically reduced and offer a variety of options to help you create your dream custom product line.
Key differences: Side-by-side comparison
How to decide: Which one is right for your brand?
Choosing between private label and custom formulation depends on your brand’s goals, budget, and timeline.
To help you decide, consider the following questions:
- What are your business goals? Are you looking for quick market entry or long-term brand differentiation?
- What’s your budget? Do you have the resources for extensive R&D, or do you prefer to minimize upfront costs?
- How much control do you need over the product? Are you satisfied with customizing existing formulas, or do you need full control over every ingredient?
- How quickly do you want to launch? Is time-to-market a critical factor for your business strategy?
Choose private label if:
- You want to launch quickly with minimal risk.
- You have a limited budget.
- You’re testing the market before investing heavily.
- You prefer focusing on branding and marketing rather than product development.
Choose custom formulation if:
- You have a specific product vision that requires custom ingredients or performance.
- You want full control over your product's formulation and features.
- You’re prepared to invest in R&D for long-term brand growth.
- You aim to create something truly unique in the market.
Private label vs custom formulation: Which is right for your brand?
When it comes to private label vs. custom formulation, there’s no one-size-fits-all answer. Private label is perfect if you want speed, affordability, and simplicity, while custom formulation offers exclusivity, innovation, and creative control—but at a higher cost and longer timeline.
Think about your brand’s goals, budget, and how quickly you want to get to market. Whether you choose private label or custom formulation, the right decision is the one that aligns with your vision.With Blanka and Blanka Labs, both options are easily achievable to help you start or scale.
Need expert guidance? Let’s chat about the best option for your brand with Blanka today!
