Why Private Label Skincare Manufacturing is Growing

Private label skincare manufacturing is currently enjoying unprecedented growth. Sales are increasing every year for skincare manufacturers as more and more existing skincare brands, retailers, salon and spa owners, and others in the wider net of personal care product sales are recognizing that there has never been a better time to outsource and/or launch their own brand-name products.

For companies who own and market existing brands, it makes sense to outsource the manufacturing of these products to private label skincare manufacturers for a variety of reasons.

One of these reasons is capital. Owning and operating a skincare manufacturing facility requires significant upfront capital and ongoing investment. Most brand owners recognize that acquiring and maintaining the equipment and facilities to support the wide variety of possible products and the packages in which they are stored will cost millions and millions of dollars. Likewise recruiting the experts to support this infrastructure is a significant ongoing capital expense.

By allowing a private label skincare manufacturer to make these investments, brand owners free up their capital to focus on selling their products. The skincare manufacturer can spread out the cost of the equipment, facilities, and ongoing expenses among a number of brands. Outsourcing makes it possible for everyone to win.

Another reason why brand owners are choosing outsourcing is focus. We operate our businesses in an age of specialization. Most brands owners and operators recognize that being excellent requires focus and so they choose to be excellent marketers. By focusing their efforts on selling their products they become better marketers and avoid the risks and liabilities associated with the manufacturing process.

As owners of shelf space, more and more skincare retailers spa and salon owners, gift shops, or big box retailers are recognizing that they can make more money by using some of their shelf space to sell their own branded products. Thus, more and more skincare retailers are turning to private label skincare manufacturers to help them develop and manufacture these brands. By doing so they are not only potentially improving the margin on the products they are selling, but are also building value in their own brand. This brand and all the accompanying products can then be distributed and sold through other sales channels, creating additional revenue and profit.

Whether you own an existing skincare brand or have the shelf space to sell your own brand, turning to a private label skincare manufacturer may be the very best option in order to leverage your expertise and capital.

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