Private label cosmetics are cosmetic products that a specialist manufacturer develops and makes for another company, which then sells them under its own brand. The brand decides on the product, the target group and the positioning. The manufacturer handles formulation, production and filling, and usually testing and much of the legally required documentation as well. The packaging carries the brand's name, not the manufacturer's.

Retailers have worked this way for decades with their own-label ranges. Today the model is also used by start-ups, spas, pharmacies and companies from other sectors that want to offer skincare without building their own production.

Private label, white label, contract manufacturing: what is the difference?

The three terms are often used interchangeably, including by manufacturers. Strictly speaking, they describe different things.

White label usually means a ready-made standard product. Several brands can buy the same formulation and sell it under their own name; typically only the packaging and label change. It is fast and relatively inexpensive, but the product is not exclusive.

Private label goes further. The formulation is adapted or developed for one brand and is normally produced for that brand only. How far the adaptation goes is a matter of agreement, from a modified base formulation to a completely new development.

Contract manufacturing describes the manufacturer's role: producing on behalf of another company. The formulation may have been developed for the brand, or the brand may bring its own. Put simply, private label is the brand's perspective, contract manufacturing the producer's.

At L.A. Schmitt, there are three starting points: one of our proven formulations, an adaptation of an existing formulation, or a new development for your brand. We are happy to work with formulations you bring along, although a one-to-one transfer is rarely possible because every manufacturer works with different raw materials.

Who is private label cosmetics suitable for?

For companies that want to build or extend a cosmetics brand without having, or wanting, their own production. In practice, there are three typical starting points:

• Established brands that want to outsource additional products or need extra capacity. Their priorities are confidentiality, consistent quality across batches, and whether an existing formulation can be transferred.
• Start-ups and founders with a clear product idea but no lab and no experience of cosmetics regulation. They need a partner who guides them from concept to market launch.
• Retailers, drugstores, spas and health food shops that want to add an own brand alongside their existing range.

The model is less suitable for companies that want to keep formulation know-how and production fully in-house over the long term. In that case, their own manufacturing facility is the more logical route, with the investment in premises, equipment and staff that comes with it.

How does a private label project work?

Most manufacturers follow similar steps. Some run in parallel; packaging, for example, is often selected while the formulation is still being developed.

1. Briefing: the brand describes the product idea, target group, desired texture, active ingredients, exclusions (such as fragrance-free or vegan) and target retail price.
2. Formulation and samples: the manufacturer develops a new formulation or adapts an existing one. Samples are refined until the brand approves a final version.
3. Testing: stability tests show whether consistency, colour, odour and microbiological quality remain stable over the planned shelf life. Compatibility between product and packaging is checked as well.
4. Safety assessment and documentation: based on the formulation and the test results, the safety report and the Product Information File are prepared.
5. Packaging and costing: packaging, quantities, lead times and prices are agreed.
6. Production and filling: the product goes into series production and is filled and labelled. Before it is first sold, it is notified in the EU's CPNP portal.

You will find how these steps work at L.A. Schmitt in detail on the page The journey to your beauty product.

What are the legal requirements in the EU?

The key legislation is the EU Cosmetics Regulation (EC) No 1223/2009. It applies to every cosmetic product sold in the EU, wherever it was made. For private label products, these obligations matter most (see also our article on the legal requirements for cosmetics in the EU):

• Responsible person: every product needs a designated person or company established in the EU who is accountable for compliance with the Regulation.
• Safety assessment: before a product is placed on the market, a qualified safety assessor evaluates it and prepares the Cosmetic Product Safety Report (CPSR).
• Product Information File (PIF): it contains, among other things, the product description, the safety report, manufacturing details and evidence for any claimed effects. It must be available to the authorities for ten years after the last batch was placed on the market.
• CPNP notification: each product is notified in the European Commission's Cosmetic Products Notification Portal before it goes on sale.
• Good Manufacturing Practice (GMP): products must be manufactured in line with GMP. The reference standard is EN ISO 22716.
• Labelling and claims: labels must include the mandatory information set out in the Regulation, and claims such as "moisturising" or "suitable for sensitive skin" must be backed by evidence.

Markets outside the EU, such as the UK or the US, have their own rules. If you plan to sell there, raise it with your manufacturer early on.

Who is responsible: the brand or the manufacturer?

This point is easy to underestimate. Under the Cosmetics Regulation, anyone who sells a cosmetic product under their own name or trademark counts as its manufacturer, even if they do not produce anything themselves. As a rule, this makes the brand the responsible person. It is accountable for the product's safety, correct labelling and a complete Product Information File.

The role can be assigned by written mandate to a person or company established in the EU. Brands based outside the EU always need someone inside the EU to take it on. L.A. Schmitt can take on this role on request, including for brands based outside the EU.

The technical work is usually done by the manufacturer. At L.A. Schmitt, this includes the safety assessment by a qualified safety assessor, the Product Information File, and support with labelling and CPNP notification. More on this on our page Quality, Safety & Regulation.

What should you look for when choosing a manufacturer?

Several points can be checked before the first meeting:

• Certification: is there a valid ISO 22716 certificate, and which activities does it cover? For natural cosmetics, certifications such as NATRUE or COSMOS may also be relevant.
• Regulatory support: who prepares the safety report and the Product Information File, who handles CPNP notification, and who acts as responsible person?
• Formulation ownership and confidentiality: who owns the formulation once it has been developed, and can the brand take it along if it changes manufacturer? This belongs in the contract, together with a non-disclosure agreement.
• Quantities: do the minimum order quantities fit your planned launch volume, and can the manufacturer scale up if the product sells well?
• Raw materials and packaging: does the manufacturer source both, or does the brand have to organise them?
• Contact person and language: is there one person who looks after the project from briefing to first production run, and can the project be handled in your working language?

L.A. Schmitt manufactures in Ludwigsstadt, Germany, in accordance with ISO 22716; the current certificate is available on our page Quality, Safety & Regulation. Formulations we develop for a brand are produced exclusively for that brand, but they remain the property of L.A. Schmitt. Brands that want to own the formulation can have it developed with handover or buy it together with a production order. A non-disclosure agreement is the basis of every project we take on. Your contact for new projects is Ivo Petschke, Managing Director. Projects are handled in German or English.

How much does private label cosmetics cost, and what are the minimum quantities?

There is no one-size-fits-all answer. Costs depend mainly on whether an existing formulation is used unchanged, adapted or newly developed, which raw materials and packaging are chosen, and the batch size. A new development usually takes longer than an adaptation, but stability and preservative challenge tests are needed in both cases; they are only dropped if an existing formulation is used unchanged. Minimum quantities are set by each manufacturer, and custom packaging often comes with its own minimum order quantities from the packaging supplier.

At L.A. Schmitt, the minimum order quantity is 1,000 units per product, including for formulations from our existing range. For specific answers on minimum quantities, project duration and costs at L.A. Schmitt, see our FAQ on private label cosmetics.

If you are planning to develop a product of your own: our private label cosmetics page describes the services we take on, from formulation and testing to documentation and filling, and which types of company the offer is intended for.