Due to the rapid growth of the cosmetics industry, entrepreneurs are constantly looking for new ways to bring innovative products to the market. However, they are keen to do this in a short time and at low cost. Therefore, one of the most effective solutions increasingly appears to be contract manufacturing of cosmetics, which allows cosmetic companies to concentrate on aspects such as marketing and sales. Find out what contract manufacturing of cosmetics is all about and who benefits most from it!
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What is contract manufacturing of cosmetics?
Contract manufacturing of cosmetics is a process whereby a company specialising in cosmetics, known as a contract manufacturer, produces cosmetic items on behalf of another company, which then sells them under its own brand (read more about private label). This is an ideal solution for entrepreneurs who, for various reasons, cannot afford to hire employees or rent premises. By using contract manufacturing of cosmetics, you retain the rights to patents and trademarks, which gives you the chance to develop your brand and quickly get a foothold in the market.
Who can benefit from contract manufacturing of cosmetics?
A cosmetics company or brand that wants to launch new products but does not have its own production facilities or wants to benefit from the experience and technology of an external manufacturer.
Who performs the service?
A contract manufacturer who specialises in producing cosmetics on behalf of other companies. It has the appropriate technologies, laboratories, production lines and qualified staff.
What products does contract manufacturing of cosmetics cover?
Contract manufacturing of cosmetics covers many products, which can be divided into several main categories:
- Face care:
- moisturising and nourishing creams,
- facial serums,
- cleansing tonics,
- scrubs and masks,
- micellar waters,
- anti-ageing products.
- Body care:
- body lotions and butters,
- shower gels,
- body scrubs,
- oils and emulsions.
- Hair care:
- cleansing and moisturising shampoos,
- conditioners and hair masks,
- serums and oils for treating hair ends,
- hair styling products (mousses, sprays, gels).
- Personal care products:
- liquid and bar soaps,
- body wash gels,
- bath foams,
- deodorants and antiperspirants.
- Make-up products:
- foundations and concealers,
- powders,
- eyeshadows,
- lipsticks and lip glosses,
- blushers and bronzers,
- mascaras and eyeliners.
Other items that are produced through contract manufacturing of cosmetics include suntan creams and oils, eau de parfum and eau de toilette, wet wipes and specialised preparations. Manufacturers and consumers are paying increasing attention to the composition of individual products, so raw materials for the production of natural cosmetics are becoming a popular investment.
Visit the PCC Group Formulations Zone – ready-made cosmetic formulas
Advantages of contract manufacturing of cosmetics
Contract manufacturing of natural cosmetics and cleaning agents offers many advantages to both the ordering parties, i.e. the cosmetic companies, and the contract manufacturers.
The advantages for the ordering parties include primarily:
- Saving of resources. The company does not have to invest them in building and maintaining its own production facilities. The entrepreneur therefore reduces costs related to the employment and training of personnel, as well as to the supply of raw materials.
- Ability to quickly scale production up or down in response to changing market needs.
- Quick launch of new products.
- Benefiting from the contract manufacturer’s experience and expertise in the manufacture and quality control of cosmetics.
- Access to modern production technologies and innovative research methods.
By saving time and resources, the cosmetics business owner can concentrate on brand building, marketing strategy, and sales – leaving production to the specialists.
The benefits for contract manufacturers of cosmetics, on the other hand, include:
- The opportunity to establish long-term business relationships with a variety of customers, providing a stable source of revenue.
- The chance to specialise in specific technologies and production processes, leading to the improvement of staff skills and higher quality of services.
- Optimisation of resources and efficient use of production capacity (maximum utilisation of production lines following orders from different companies).
- Opportunity to reinvest profits in the latest technologies and production improvements.
Contract manufacturing of cosmetics is beneficial both for cosmetic companies that want to launch new products quickly and effectively, and for manufacturers that want to maximise the use of their resources. Such a solution is implemented, among others, by PCC Consumer Products Kosmet, a company with extensive laboratory and research facilities, which establishes international contractual cooperations.
What stages of contract manufacturing can we distinguish?
How does contract manufacturing in household chemistry work ? The first step is to develop a cosmetic formula according to the ordering party’s requirements. This most often involves creating new formulations or developing existing practices. Next, quality and safety tests of the product are carried out to ensure compliance with regulations, standards and consumer expectations. If this stage is satisfactory, the contractor can proceed with the large-scale manufacture of cosmetics and packaging of products according to the ordering party’s specifications. It is also very important to constantly monitor the quality of the product, not only at each stage of production, but also after it has entered the market. It is through the skilful implementation of these procedures that contract manufacturing of cosmetics is gaining in popularity.
- Olszacka Małgorzata, Patrycja Chudzia, "Ekspansja innowacyjnych produktów firmy Dr Irena Eris na rynki wschodnie", Golik-Górecka (red.), Strategie marketingowe w polskich firmach na rynkach wirtualnych i realnych. Studia przypadków, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2016
- https://clovercosmetics.pl/produkcja-kontraktowa/
- https://www.poplawskagroup.pl/strefa-wiedzy/czym-jest-produkcja-kontraktowa-kosmetykow/
- https://pl.wikipedia.org/wiki/Kosmetyki