Custom Formulation vs. White Label: What’s Right for You?

Introduction

When launching a private label cosmetic brand, one of the first and most important decisions you’ll face is: Should you choose a custom formulation or go with a ready-made (white label) product? Both options offer unique benefits — but they serve different needs, budgets, and timelines. In this blog, we’ll break down the pros and cons of each so you can make an informed choice aligned with your brand vision.

What is White Label?

White label products are pre-formulated, market-tested products that are ready for branding. You choose from a catalog of finished goods and apply your own label, logo, and packaging.

Common white label formats:

• Vitamin C serums

• Hyaluronic acid moisturizers

• Lip balms

• Body butters

• Sunscreens

What is Custom Formulation?

Custom formulation means developing a completely unique product from scratch or modifying a base formulation. You choose the ingredients, textures, scent, actives, and more.

Popular for:

• Brands with a specific claim (e.g., “100% fragrance-free” or “infused with local botanicals”)

• Functional beauty (dermatologist-grade or clinical skincare)

• Disruptive or niche product ideas

White Label: Pros & Cons

✅ Advantages

• Speed to market: Launch in as little as 4–6 weeks

• Lower R&D costs: No lab development or sampling fees

• Proven stability: These formulations have already passed basic safety and shelf-life testing

• Ideal for testing demand: Great for soft launches or market validation

⚠️ Limitations

• Less differentiation: Other brands may use the same base

• Limited ingredient control: You can’t always remove or substitute actives

• Customization constraints: Packaging flexibility may be limited depending on vendor

Custom Formulation: Pros & Cons

✅ Advantages

• Total control: Choose texture, actives, scent, and performance

• Unique brand identity: Stand out in the market with exclusive products

• Better alignment with brand values: Create clean, vegan, or ayurvedic lines that reflect your ethos

• Intellectual property potential: Your formulation is proprietary

⚠️ Limitations

• Longer timelines: Development, testing, and approvals take more time

• Higher minimum order quantities (MOQs): Some manufacturers require higher volumes

• Cost-intensive: R&D, sampling, and trial runs increase upfront investment

How to Decide: Key Factors

Factor	Choose White Label If...	Choose Custom Formulation If...
Budget	You're starting lean and want to test demand	You can invest in R&D and want long-term uniqueness
Timeline	You need to launch within 1–2 months	You’re okay with a 2–4 month lead time
Product Vision	You're flexible with standard offerings	You want something no one else offers
Brand Positioning	You're testing market fit or launching a sub-brand	You're building a premium or disruptive brand
Ingredient Preferences	You’re okay with off-the-shelf ingredients	You want to avoid certain actives or add new ones

Hybrid Approach: The Best of Both Worlds

Some successful brands start with white label to gain early traction and transition to custom once they know what sells.

🔁 For example:

• Launch a basic 3-step skincare line using white label

• Observe what SKU performs best

• Replace the bestseller with a custom-enhanced version during relaunch

This staggered strategy balances risk, speed, and innovation.

Real-World Examples

• White Label Success: Many spa and salon chains offer in-house product lines (like scrubs or cleansers) made via white label. These boost brand identity without heavy development costs.

• Custom Formulation Success: Indie brands like The Ordinary or minimalist skincare lines often use unique formulations to position themselves as ingredient experts.

Conclusion

There’s no one-size-fits-all solution. White label is perfect for fast launches and budget-conscious founders. Custom formulation is ideal for founders who want full control and long-term uniqueness. Whichever you choose, ensure it aligns with your brand story, customer promise, and long-term growth goals.

Still undecided between white label and custom formulation? We’ll help you assess your goals, timeline, and budget - and recommend the right path. Book a free consultation with our private label team today.