Himanshu Saini August 1, 2025
If you want to start your own beauty brand, one of the first things you need to decide is how you’ll make your products. Should you create a new formula from scratch or use ready-made products and sell them under your own brand name?
These two options are called custom formulation and white label products. Both can help you launch a successful brand, but they work in different ways.
In this blog, we’ll explain what each option means, their pros and cons, and how to choose the right one for your business. Whether you’re just starting out or planning to grow big, this guide will help you make a smart choice.
What is a Custom Formulation?
A custom formulation means creating a unique product from scratch. You work with a lab or manufacturer to develop your own formula, choosing the ingredients, texture, fragrance, colour, and performance. This product will be made specifically for your brand, and no one else will have the same one.
For example, if you want a face serum that combines rare botanicals with a certain scent and texture, a custom cosmetic formulation makes that possible.
Pros of Custom Formulation
1. 100% Unique Product: Your product is one of a kind. No other brand will have the same formula.
2. Full Control Over Ingredients: You decide what goes into the product, which is great for clean beauty, vegan, or sensitive skin brands.
3. Strong Brand Identity: You can tell your brand story through unique formulas and results that reflect your values.
4. Higher Customer Loyalty: If your product works well and isn’t available anywhere else, customers are more likely to return.
Cons of Custom Formulation
1. Higher Costs: Custom products involve lab fees, testing, certifications, and higher minimum orders. It’s expensive, especially for small businesses.
2. Longer Time to Launch: Developing a formula from scratch can take 6 to 18 months, or even longer.
3. Regulatory and Safety Testing: You’re responsible for ensuring the product meets safety, legal, and industry standards.
4. More Complex Manufacturing: You’ll need to find a reliable lab and manufacturer who can bring your vision to life and scale with your brand.
What Is White Label (Also Called Private Label)?
White label (or private label) means using a pre-formulated product made by a third-party manufacturer. You apply your own branding, like the logo, label, and packaging, but the actual product formula is not unique to you.
Many popular skincare and haircare brands use white label cosmetic products, especially when starting out. The manufacturer handles everything from product development to production, and you focus on branding and selling.
Pros of White Label
1. Quick Launch Time: You can get your products to market in 4–8 weeks because the formulas are already made and tested.
2. Lower Investment: No need to pay for lab research, testing, or development. Just pay for the product, branding, and packaging.
3. Low Minimum Order Quantities (MOQs): Most white label companies offer small batch options, which is great for startups.
4. Easy and Convenient: No need to worry about formulation, safety testing, or compliance; the manufacturer already takes care of it.
Cons of White Label
1. Not a Unique Formula: Other brands may be selling the same product with different packaging.
2. Limited Customisation: You can change the packaging and sometimes fragrance or texture, but the base formula stays the same for your white label beauty products.
3. Harder to Stand Out: Because other brands might be using similar products, you’ll need strong branding and marketing to be different.
4. Less Ingredient Control: You can’t fully customise the ingredient list unless you meet high volume requirements.
Custom Formulation vs. White Label: Key Differences
Let’s explore the key differences between custom formulation and private label skincare!
| Feature | Custom Formulation | White Label |
| Formula | Unique, developed from scratch | Pre-made, used by multiple brands |
| Time to Market | 6 to 18 months | 4 to 8 weeks |
| Investment Cost | High | Low to medium |
| Product Testing | Required and handled by brand | Already done by manufacturer |
| Control Over Ingredients | Full | Limited |
| Minimum Order Quantities | High (1000+ units) | Low (100–500 units) |
| Ideal for | Established brands or large budgets | Startups, influencers, small brands |
Custom Formulation vs. White Label: Which One Is Right for You?
Now that you understand the difference, here’s how to decide:
Choose Custom Formulation if:
- You want to create a signature product no one else has
- Your brand story is strongly linked to special ingredients or results
- You have the budget and time to invest in R&D
- You plan to scale and grow into a premium or niche brand
- You want to patent or own your formula
Choose White Label if:
- You want to launch your brand quickly with white label herbal products
- You’re testing the market with a small budget
- You prefer to focus on branding and marketing
- You don’t want to handle R&D or testing
- You’re an influencer, salon, or retailer looking for fast brand expansion
Can You Start with White Label and Later Move to Custom?
Yes! In fact, this is a very smart strategy.
Many successful beauty brands start with white label products to:
- Test the market
- Build a customer base
- Create cash flow
- Understand what customers want
Once their brand grows and they learn more about what works, they invest in custom formulation for signature products. This approach gives you the best of both worlds: fast, low-risk entry and the freedom to grow into unique offerings later.
Final Thoughts
There’s no one-size-fits-all answer. Both beauty products custom formulation and white label can lead to a successful beauty brand. It all depends on your goals, timeline, budget, and long-term vision.
If you’re just getting started, white label is often the best choice. It lets you build your brand quickly and affordably while focusing on marketing, customer feedback, and brand experience.
If you’re ready to invest more and create a signature product, custom formulation offers endless creative possibilities and a strong competitive edge.
Whatever path you choose, the most important thing is to stay focused, build trust with your audience, and create products that deliver real results.
FAQs
Q. What is the difference between custom formulation and white label products?
Ans. Custom formulation involves creating a unique formula from scratch tailored to your brand’s needs, while white label products are pre-made formulations that you can rebrand and sell as your own.
Q. Which is faster to launch – custom formulation or white label?
Ans. White label products are significantly faster to launch since the formulation and testing are already complete. Custom formulation may take several months due to R&D, testing, and approvals.
Q. Is custom formulation more expensive than white label?
Ans. Yes, custom formulation typically involves higher upfront costs for R&D, testing, and regulatory compliance. White label is more budget-friendly for startups or first-time brand owners.
Q. What level of customisation is possible with white label?
Ans. White label products allow limited customisation, such as fragrance, packaging, label design, and size. Custom formulation offers full flexibility on all ingredients and performance.
Q. Which option is better for building a unique brand identity?
Ans. Custom formulation helps create a distinctive product that reflects your brand’s values and vision, ideal for premium or niche positioning. White label is great for faster market entry but may lack uniqueness.
