What is Private Label: The Complete Guide 2025

Private label is a business model where one company manufactures a product, and another sells it under their own brand. It's used across industries—from cosmetics to food to home goods—but the idea stays the same: you own the brand, while production is handled by a partner.

Although it works across many categories, private label has had a particularly strong impact in cosmetics, where demand for niche, high-quality, and personalised products continues to grow.

This guide walks through how private label works, why it's growing fast, and how to approach it in 2025.

White Label vs Private Label

The terms white label vs private label are often used interchangeably, but the two models offer very different levels of control and ownership. For businesses looking to build something long-term, understanding that difference is essential—especially in categories like beauty and personal care.

This comparison highlights how the two models differ in terms of customisation, speed, exclusivity, and cost.

Private Label in the Cosmetics Industry 

Cosmetics is one of the most competitive and rewarding categories for private label. Consumers are looking for products that feel personal, trustworthy, and aligned with their values. Private label gives brands the flexibility to respond quickly, test ideas, and stand out in a fast-moving market.

Feedback plays a big role. Customers compare products, share reviews, and speak up about what works for them. Brands that listen and adapt build trust faster. Private label allows you to respond without waiting on long production cycles or committing to large-scale inventory.

There is also growing demand for clean, ethical products. With the right supplier, it's easier to develop private label organic skin care, fragrance-free formulations, or products tailored for sensitive skin.

Is Private Label Right for You? 

Private label isn't a one-size-fits-all solution, but it's a smart option if you want to build a brand without taking on manufacturing. It works especially well when you know your audience and want to focus on branding, positioning, and sales.

It's worth considering if you're looking to:

• Launch quickly and scale gradually

• Maintain more control than white label allows

• Test product ideas without a large upfront investment

If that aligns with where you're headed, private label is worth a closer look.  

How to Launch a Private Label Product 

You don't need to run a factory to build a product brand. You just need a clear focus and the right supplier.

Here's how most brands get started: 

Choose Your Product Category  

Start with one area. Skincare, haircare, wellness—keep it focused. Narrowing your niche makes it easier to choose the right supplier and build a strong brand. If you're in cosmetics, look at growing segments like serums, scalp treatments, or private label hair products designed for specific needs.

Find a Private Label Manufacturer  

Work with someone who's transparent, responsive, and certified (GMP, ISO). It's a plus if they understand your market—not just the production process.

Customise Your Product  

Start with a ready-made base or create something new. You can customise the scent, texture, packaging, or build something fully unique—depending on what you need.

Design Your Branding and Packaging 

This is where your product becomes your brand. Choose packaging that fits your market, and make sure your label meets local regulations.

Test and Approve 

Always check samples before moving into full production. Look for quality, finish, and how it feels when it reaches the customer.

Plan Your Launch 

Your product is only part of the story. Align your pricing, messaging, and inventory to support your launch.

Where to Source Private Label Products (and Why Region Matters) 

Where you source your product affects more than just cost. It influences your timeline, quality, flexibility, and how well you can scale. While manufacturers exist globally, not every region offers the same advantages.

Many brands start in China for its scale and pricing, but communication and quality can vary. South Korea leads in skincare innovation, though customisation and low MOQs are more limited. The US and EU offer familiarity, but production costs are often higher.

Hong Kong offers a balance. It's a global shipping hub with manufacturers who understand international compliance, regional regulations, and brand expectations. If you want flexibility without sacrificing professionalism, it's a strong choice—especially for brands looking to build high-quality, export-ready products.

Legal and Regulatory Essentials 

Before launching a product, make sure it meets the basic legal and regulatory requirements of the markets you plan to sell in. This applies to everything from how ingredients are listed to what claims appear on the label.

If your product includes terms like "organic", "fragrance-free", or "dermatologist-tested," you'll need the documentation to support those claims. This guide to decoding personal care ingredients is a helpful place to start.

Requirements vary across regions. A label that works in the US may not meet EU or UK standards. That's why it helps to work with a supplier who understands export compliance—and who includes this process as part of product development.

Cost Breakdown: What to Expect 

Private label costs depend on a few core areas—some fixed, some flexible depending on how you customise your product.

Product – Ready-made formulas are more affordable. Custom development adds cost, especially if you're adjusting ingredients or performance.

Packaging – Costs depend on materials, design, and order volume.

MOQ (Minimum Order Quantity) – Some suppliers offer low MOQs for first runs, while others require larger commitments.

Compliance – If you're selling internationally, budget for testing, labelling support, or certification fees.

Starting with a simple product and standard packaging is one of the easiest ways to keep costs manageable—especially if you're testing the market before scaling.

What Makes a Private Label Brand Successful? 

Launching a private label product is one thing. Turning it into a lasting brand takes more than a great formula and well-designed packaging.

The most successful brands know exactly who they're for. They don't try to be everything to everyone. Instead, they focus on a specific market and build around that.

Consistency also matters. Customers need to trust that what they buy today will meet the same standards next month. That's where the right supplier makes a difference: fewer quality issues, fewer delays, and more time to focus on growth.

Finally, it's not just about what's inside the bottle. Brands that stand out invest in how their product is presented. Messaging, design, and positioning shape how it feels, who it attracts, and how it's remembered.

Future Trends to Watch 

Private label continues to grow, but what's changing is how brands use it. Customers want products that are simple, effective, and easy to understand. Ingredient-led messaging is becoming more common, especially in skincare.

There's also growing interest in barrier repair and skin minimalism—less layering, more focus on results.

Sustainability has moved from optional to expected. Refillable packaging, low-waste production, and responsible sourcing are now part of what buyers look for.

Smaller brands are often first to move. With faster feedback and shorter timelines, they're shaping trends, not just reacting to them.

These shifts are changing how brands launch, position, and grow. Private label gives you the flexibility to keep up. 

Making Private Label Work for You 

Private label isn't just a way to bring products to market quickly. It's a way to build a brand with intention—where every formula, package, and detail reflects what you stand for.

What works best is starting with clarity. Know who you're creating for, choose the right product to begin with, and work with a supplier who can support you as you grow.

If you're exploring private label for the first time or looking to expand your current line, download our product catalog to see what's possible.