Do you enjoy researching new ingredients and how they affect the skin? Are you passionate about everything beauty related? If you also have business acumen, consider launching a company in this niche. Conduct market analysis, learn about the face cream manufacturing process and choose a business model that aligns with your goals.
TL;DR (Too Long; Didn't Read)
Cosmetics don't require FDA approval, but they are regulated by the FDA after hitting the shelves. Therefore, you need to research and test each ingredient, make sure they are safe and refrain from marketing misbranded or adulterated products.
Define Your Target Audience
The global skin care market was worth over $142 billion in 2019, and it's estimated to reach a staggering $189.3 billion by 2025. The growing demand for organic and natural skin care products as well as the advent of e-commerce is fueling this industry. Manufacturers are investing more time and money in the development of organic products than ever before. Anti-aging creams, skin-brightening creams and sunblock are among the most popular choices.
As an entrepreneur, you need to research the market and define your target audience before you start a face cream business. This will allow you to develop products that meet customers' needs and align with the industry trends.
For example, if you're targeting women in their early 20s, you may want to offer sun protection creams, exfoliators and moisturizers rather than anti-aging formulas. Women in this age range are seeking products that keep their skin hydrated, stimulate collagen production and prevent fine lines.
Choose a Business Model
Once you've defined your target audience, decide what you want to sell. Assess the costs involved and determine whether you want to create your own formulas, promote brand-name products or work with private label product manufacturers. Another option is to start a skin care franchise so that you receive the training and resources needed for a profitable venture.
If you're planning to launch your own line of skin care products, research the face cream manufacturing process. Learn about the best ingredients, how they work and how to combine them for optimal results. Be prepared to invest in a lab or research center, hire chemists and consult dermatologists. Although this business model involves the highest costs, you can build a successful brand and make a name for yourself.
A more affordable option is to team up with private-label cosmetics manufacturers; these companies have the resources to develop quality face creams, body lotions and other skin care products that can be sold under your brand name. Since you don't need to invest in development and research, your startup costs will be lower. Private-label cosmetics manufacturers can handle the entire process, from product development and packaging to branding and order fulfillment. Cosmetic Solutions, Your Name, Onoxa and Mediderm Laboratories are just a few examples.
The Face Cream Manufacturing Process
Whether you decide to create your own formulas or work with private-label companies, it's important to comply with U.S. Food & Drug Administration regulations. Except for color additives, the ingredients used in the face cream manufacturing process don't require FDA approval. However, some laws and regulations apply once the product is launched.
The FDA prohibits manufacturers and distributors from marketing misbranded or adulterated face creams and other cosmetics. This means you need to ensure that your products are safe and free of contaminants, bacteria or toxic compounds. The label should clearly state the ingredients used and any warning statements. Furthermore, the FDA advises manufacturers to conduct safety assessments of individual ingredients.
Be aware that some compounds, such as bithionol, mercury, vinyl chloride and chloroform, are not approved for use in cosmetic products. If you partner with private-label companies, make sure they don't use any of these ingredients. Ideally, choose a manufacturer that offers dermatologically tested formulas and doesn't compromise on quality.
Launch Your Skin Care Business
The next step is to draft a business plan that outlines your mission statement and objectives and describes your competitive advantage and unique selling proposition. Cover the financial and legal aspects of running a skin care business. The exact requirements will depend on your business model. Cosmetics distributors, for example, are subject to different regulations than manufacturers.
Register your company with the state, get a tax ID number and open a business bank account. If you open a physical store, you may need building, signage and zoning permits. Cosmetics manufacturers may require additional permits from the local health department and other regulatory bodies.
Come up with a marketing strategy to reach your target audience. Facebook, Instagram, YouTube and other social networks are ideal for promoting cosmetics. Connect with social media influencers, set up affiliate and loyalty programs and consider offering free samples. If your products appeal to a local audience, partner with beauty salons, spas, wellness centers, shopping malls and other businesses in your area.
- Statista: Size of the Global Skin Care Market From 2012 to 2025 (in Billion U.S. Dollars)
- Grand View Research: Skin Care Products Market Size, Share & Trends Analysis Report, by Product (Face Cream, Body Lotion), by Region (North America, Central & South America, Europe, APAC, MEA), and Segment Forecasts, 2019 - 2025
- U.S. Food & Drug Administration: FDA Authority Over Cosmetics: How Cosmetics Are Not FDA-Approved, but Are FDA-Regulated
- U.S. Food & Drug Administration: Key Legal Concepts for Cosmetics Industry: Interstate Commerce, Adulterated, and Misbranded
- Electronic Code of Federal Regulations: Subpart B — Requirements for Specific Cosmetic Products
- Entrepreneur: Skin Care Products
- Hootsuite: How to Define Your Target Market: A Guide to Audience Research
- Your Name: About Us
- Cosmetic Solutions: Our Private Label Skincare Branding Program
- Mediderm Laboratories: Private Label Skin Care Products
- SWK Technologies: The 8 Most Important FDA Regulations For Cosmetics & Personal Care Product Manufacturers
- ChemSafetyPro: How to Comply With Cosmetics Regulation in USA
- Entrepreneur: How This Founder Built a $90 Million Skincare Business With No Beauty-Industry Experience
- One of the most popular retail perks buyers look for is free shipping with quantity orders. Decide on the number of units sold to determine this marketing benefit, then make sure you inform your buyers.
- While the FDA isn't required to monitor personal care products such as face creams, making sure a laboratory test was conducted on your formula can save you from disaster. If a consumer has an adverse reaction to a product, it can wind up on the FDA watch list, so don't take lightly the importance of having your recipe evaluated.
Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.