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Formula for Sale: Inside the Business of White Labeling

Published May 6, 2025
Published May 6, 2025
Troy Ayala

The beauty industry is currently in an era of hyper-entrepreneurship, and with that comes high levels of accessibility. With the right Instagram aesthetic, a compelling founder story, a Shopify site, and a few thousand dollars, virtually anyone can launch a beauty brand. However, beneath this lies white labeling, a quieter, less visible sector that currently powers a significant chunk of global beauty launches.This sector, valued at $9.21 billion in 2024 and projected to reach $24.03 billion by 2033 with a CAGR of 11.5% from 2026 to 2033, enables entrepreneurs to brand preformulated products as their own, especially for indie beauty and influencer-led lines. From moisturizers to masks, an increasing number of products lining shelves and feeds are the output of the same few labs, with many brands beginning not with bespoke R&D, but with ready-made formulas and factories waiting to slap a name on a jar. While private and white labeling has created a low-barrier entry point for aspiring entrepreneurs, the model is fraught with ethical concerns, limited differentiation, and a growing saturation that threatens long-term brand equity.The Mechanics of the MarketWhite or private labeling in beauty refers to the practice of sourcing preformulated products from a manufacturer and rebranding them for resale. The difference between the two terms is largely semantic. “Private labeling, white labeling—it’s the same product, just with different labels,” explained Ginger King, a cosmetic chemist with over 30 years in the industry. King is the founder of Grace Kingdom Beauty, a cosmetic product development company.“If I have this formula done, I can sell to [A or B or C].

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