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As of November 2023, there were around *** contract manufacturers across the United States that specialized in the production of one or multiple color cosmetics categories. That year, approximately *** manufacturers developed facial cosmetics as part of their product range.

Private label vs. contract manufacturing – what are the differences?

When launching a beauty brand, many smaller businesses turn to private labeling to place their products on the shelves. Private label suppliers are an affordable option because they offer a catalog of pre-existing cosmetics formulas and products that customers can sell under their own brand name and logo. In the United States, private label nail cosmetics are particularly popular among consumers. Contract manufacturing, on the other hand, allows for more flexibility and uniqueness, as brands can create their own formulas, product ranges, and packaging - without the burden of new plants or expensive equipment.

Successful cosmetics brands are outsourcing product manufacturing

The market for contract manufacturing of cosmetic products is thriving in the United States, and it is expected to grow worldwide. To satisfy the increasing global demand for beauty and personal care products, many companies outsource their product manufacturing and packaging to external providers, as they can process and deliver products quickly. One of the world’s leading manufacturers is Seoul-based company Cosmax, which caters to premium beauty brands like Estée Lauder and L’Oréal. The manufacturer opened its first U.S. factory in 2015.