Private Label vs. Custom Formulation: What’s Best for Your Skincare or Hair Care Line?

Starting a skincare or hair care brand? One of your first decisions will be whether to go with private label or a custom formulation. Both can lead to success — but the right choice depends on how quickly you want to launch, how much you want to invest, and how unique you want your formula to be.

Private Label: Speed, Simplicity, and Less Risk

Private label skincare and hair care options give you access to pre-formulated products you can rebrand as your own. Think private label shampoo, face creams, or body scrubs — ready to go with your name and packaging on it.

Why brands choose private label:

• Speed to market: You can launch in as little as 4–6 weeks.

• Lower costs: No need for R&D, testing, or high MOQs.

• Trusted formulas: These stock products are often pre-tested and compliant, which reduces launch risk.

You can usually customize things like scent, texture, and packaging — but the base formula stays the same. That means you don’t own the intellectual property, and other brands might be selling similar products.

Still, it’s a smart move for salons, spas, influencers, and new founders. Private label is best when you're prioritizing launch speed and want to test a concept before committing to a full-scale product build.

Custom Formulation: Total Control and Exclusive Formulas

Custom formulation is a totally different route. You’re working with chemists and contract manufacturers to create a new formula from scratch. You choose the active ingredients, texture, skin feel, scent, packaging — everything.

Why choose custom formulation:

• Full ownership: You’ll have a unique, proprietary formula that no one else can copy.

• Tailored performance: Target specific skin or hair concerns like aging, acne, breakage, or sensitivity.

• Scalable branding: Great for positioning your product as science-backed or clinically effective.

This route offers complete flexibility but comes with a higher price tag. Development can take several months due to stability testing, sourcing, and compliance steps.

But the payoff is high. You’re building a product that’s exclusive to your brand — and that’s a huge trust-builder with customers.

Private Label vs Custom Formulation Comparison Chart

Feature	Private Label	Custom Formulation
Launch Speed	4–6 weeks	6–12+ months
Cost to Start	Lower	Higher (includes R&D and testing)
Formula Ownership	No	Yes
Customization Level	Basic (scent, label, packaging)	Full control
Best For	Startups, spas, retailers	Scalable DTC brands, clinical results

So... Which One’s Right for You?

If you’re just starting out, want to keep things simple, or need to get products to market fast, private label hair care or skincare can be a solid way to dip your toe in the beauty business.

If your vision includes one-of-a-kind formulas, performance claims, or long-term brand equity, then custom formulation is worth the time and investment. You’ll stand out in a saturated space, especially if you're developing a custom haircare formulation or a serum with novel actives.

Some brands do both: launch with private label, then transition to custom once they’ve proven demand. This hybrid model gives you speed and scale and works especially well when supported by a partner who understands both sides.

At Freelance Formulations, we specialize in helping indie and emerging brands create custom formulas that feel as good as they perform. We can also provide a private label formula to tweak as your base to get started. So if you are questioning private label vs custom formulation still, then we can help you make that decision.

Frequently Asked Questions (FAQ)

Can I start with private label and switch to custom later? Yes, many founders launch fast with private label, then upgrade to custom formulations once they’ve proven demand and know their target audience better.

What’s the minimum order quantity (MOQ) for private label products? MOQs vary by manufacturer, but some offer as low as 50–100 units. Custom formulations usually require higher MOQs starting around 500–1,000+ units.

Do custom skincare products need FDA approval? Skincare and hair care products don’t need FDA “approval,” but they must comply with FDA regulations on labeling, safety, and ingredient use. Custom products require testing for stability and microbial safety before launch.

How long does it take to develop a custom skincare formula? Anywhere from 6 to 12+ months. The process includes R&D, sourcing, lab samples, testing, packaging, and compliance steps.

Can I trademark a private label product? You can trademark your brand name and logo, but not the product formula itself — since it’s not unique to you. With custom formulations, you can own the formula IP and trademark your product names.

We help indie beauty founders turn their ideas into real products — from concept to lab sample to launch. Whether you’re going private label or custom, we’ll guide you through it.

 Book a free discovery call here.