Did you know the size of the U.S. cosmetics and beauty products industry?
According to IBISWorld, by 2025 it’s expected to be around $45.3 billion. That’s a growth of about 2.36% from 2024. Pretty impressive, right?
Starting your own cosmetic line is of course a hundred-dollar idea! Nevertheless, it can also feel a bit mind-boggling. There is no doubt that the beauty market is thriving with millions of new brands being launched every now and then. However, to make your cosmetics startup outshine, you really need to find the right third-party cosmetic manufacturer. Whether you’re searching for private label cosmetics manufacturers or makeup manufacturers, planning is crucial to avoid pitfalls and sustain in the cutthroat competition.
In this blog, we will explain the steps to take when finding a great cosmetic manufacturer in USA and share the options which can help you build a rewarding cosmetic and makeup business.
What is a Third-Party Cosmetic Manufacturer?
A third-party cosmetic manufacturer is a company that produces products for others as per their requirement. They do all the tough grind including manufacturing cosmetics or makeup products, packaging them, as well as labelling them. This gives you ample time to spend on branding and marketing your products. You won’t need to take the headache of setting up your own factory.
There are two prime types of third-party manufacturers:
1. Private Label Manufacturers: They already have products ready for you to start branding. This is a fast and less expensive way to commence your business.
2. Custom Manufacturers: They collaborate with you to work out and create unique beauty and cosmetics products. This gives you higher control over what is happening with your product lines and how they are becoming.
Choosing the right type depends on your budget, vision, and the customers you want to target.
How to Find the Best Third-party Cosmetic Manufacturer for Your Startup?
Here are simple steps to find the best fit for your cosmetic brand:
1. Outline Your Product Portfolio
Begin by determining what kind of beauty products you want to sell. Irrespective of the way you want to invest in skincare, makeup, or maybe hair products? Identifying this will help you find manufacturers who specialize in those items.
For example, if you wish to sell vegan and cruelty-free makeup, then you must look for cosmetic manufacturers experienced in producing clean beauty. Also, think about how you wish your products packaged eco-friendly and organic might be vital for your line.
2. Create a Budget
You need to know your spending capacity. A lot of third-party manufacturers have minimum order quantities (MOQs) which you will have to meet. Hence, private label companies usually have lower MOQs, making them the right choice if cash is limited.
Don’t forget to calculate additional costs like:
- Product testing
- Packaging design
- Shipping fees
3. Search for Cosmetics Manufacturers
With your product range and budget in mind, start looking for manufacturers. You can check out online platforms, industry directories, and even trade shows to uncover some good options.
Use these methods to find manufacturers:
- Online Platforms/Directories: You can refer platforms like Find My Manufacturer , Thomasnet and Alibaba lists the popular cosmetic manufacturers. All you have to do is sort the manufacturers by location and services.
- Trade Shows: Popular events such as Cosmoprof North America helps you to connect with known beauty product manufacturers, take a look at their products, and discuss your needs in person.
- Networking: Joining LinkedIn groups, Facebook Groups and participating on beauty forums or LinkedIn groups can help you connect with others in the industry. They might share recommendations for trustworthy manufacturers.
4. Check Manufacturer Credentials
When you have a list of candidates, look into their backgrounds. So, check for their:
- Documentations: Make sure they follow FDA rules and have important certifications like Good Manufacturing Practices (GMP) and ISO.
- Experience: A company with a history of working with good brands is likely to produce quality items.
- Customization Possibilities: If unique formulas interest you, see if they provide research and development services.
- Production Capacity: Make sure they can keep up as your business grows.
5. Request Product Samples
Don’t partner with any third-party beauty or cosmetic manufacturer without testing their products! Ask for samples of the cosmetics you want to offer. This allows you to check the quality, texture, scent, and packaging.
Keep an eye on:
- Focus on product reliability
- Ensure packaging durability
- Pay attention to the overall look
Pro Tip – Samples are also great for gathering feedback from potential customers through small test runs.
6. Negotiate Terms and Agreements
Once you have found a suitable cosmetics manufacturer, it’s time for you to initiate your negotiation. Make sure you discuss about:
- Pricing: Ensure the costs are fair and include everything—formulation, production, and packaging.
- MOQ: Discuss the minimum order to make sure it fits your needs, especially if you are just starting.
- Lead Times: Be clear about how long production and delivery will take.
- Quality Control: Make sure they have measures in place to ensure the products stay consistent.
- Ownership Rights: If you are creating custom formulas, ensure you keep the rights to those formulas.
7. Build a Strong Relationship
The way you connect with your third-party cosmetics manufacturer matters a lot. Keeping communication open and working together will lead to smoother operations. If possible, visit their facility and stay involved in the production process.
8. Use Digital Technology to Help
Nowadays, using online platforms can make the process easier. They connect you with verified manufacturers and give you insights into their services and customer reviews.
You could also use project management and communication platforms to keep everything in alignment. This will make sure that you both agree on the timelines, product descriptions, and measures for quality control.
Most Common Mistakes to Avoid
While you are looking for the suitable cosmetic manufacturer near you, it is essential to avoid these common mistakes:
- Ignoring Certification Checks: Never skip verifying relevant cosmetics or beauty certifications because that can lead to problems with compliance in the future.
- Focusing Only on Price: While keeping costs down is important, don’t sacrifice product quality for savings.
- Missing Clarifications on Formula Rights: Ensure you own the rights to any custom formulas you create.
- Overlooking Communication Issues: Make sure you can communicate clearly with your cosmetic manufacturer to avoid misunderstandings.
Final Thoughts
Partnering with the right third-party cosmetic manufacturer is the biggest decision you need to make toward a fail-proof beauty brand strategy. By defining your product, planning a budget, and meticulously researching, you can find a partner that fits your business requirements.
Using an online directories and platforms can make the process faster and easier. Remember, the beauty industry is extremely competitive, yet with great product lines and a strong partnership, your startup can really win the league.
