Is Private Label Skincare Still Profitable in 2025?

Is Private Label Skincare Profitable?

The short answer: Absolutely – if done right.

Private label skincare allows you to leverage an existing manufacturing infrastructure without the R&D cost and long production lead times of creating your own formulations from scratch.

Why is it profitable?

• Low cost, high margin: For example, the ex-factory price of a bottle of skincare product can be as low as US$1.50, depending on formulation and packaging. Sheet masks can cost as little as US$0.15 per piece.
• Quality meets standards: Most Chinese skincare manufacturers can produce according to FDA, ISO, FSC, and other international standards.
• Customization + scalability: As your order volume increases, you get better pricing and more leverage to customize formulation, packaging, and design – without breaking the bank.
• Marketing-friendly margins: The low product cost gives you wide margins for branding, storytelling, influencer marketing, and ads – key drivers of skincare brand success.

How Much Money Do I Need to Start a Skincare Brand?

If you’re going the private label route with a Chinese supplier, your budget can be lean.

Here’s a rough breakdown:

This budget could be significantly lower if you choose a simplified product line or pre-existing formulation with generic packaging.

What If I Want to Start With No Money?

Realistically, skincare is a product-based business – so completely “no money” is tough. But here are a few strategies to start lean:

• Pre-sell: Build a landing page and test interest before ordering inventory.
• Use the Manufacturer’s Brand since some manufacturers accept even single-piece orders.
• Use print-on-demand private label platforms if you still prefer to have your own brand (typically more expensive per unit, but low upfront costs).

If you’re starting from zero capital, focus on building your brand story and community first, and then use that leverage to crowdfund or attract a small investor.

How Much Can You Make From Private Label?

Let’s do a rough breakdown using a simple product like a face serum:

• Cost per unit: $1.50 (manufacturing) + $0.50 (packaging) + $0.50 (shipping & misc) = $2.50
• Selling price: $25–$45 depending on branding and positioning

That’s a gross margin of up to 90%.

With the right niche positioning (e.g., vegan, K-beauty-inspired, sensitive skin, etc.) and digital marketing strategy, even small DTC skincare brands are now hitting six-figure annual revenues within 12–18 months.

Difference Between Private Label and Creating Your Own Brand

Here’s the simple breakdown:

Most new skincare entrepreneurs start with private label and then slowly evolve into semi-custom or full-custom brands as their market grows.

How Does the Private Label Process Work?

Step 1: Submit your product requirements

Share your ideal formulation (function, feel, scent, texture). You can even send a reference product for them to base the formulation on.

Step 2: Select your packaging

Bottle, tube, jar – plus labels and capacity options. You can either:

• Provide your own packaging supplier and design, or
• Let the manufacturer recommend their trusted packaging partners for a one-stop solution.

Step 3: Sampling & testing

Once the formulation and packaging are confirmed, the factory will:

• Send you samples for evaluation
• Conduct stability and compatibility tests
• Help you comply with local market regulations (e.g., EU, US, ASEAN)

Step 4: Bulk production

Once everything is finalized and quality approved, the factory proceeds with batch production, often completing the process in 3–5 weeks.

Highlights from the 2025 Guangzhou CIBE (China International Beauty Expo)

This March, I attended the China International Beauty Expo (CIBE) in Guangzhou – a massive industry event that gathers the best skincare and cosmetic suppliers across China. With 3,800+ exhibitors and over 500,000 visitors, this expo is a goldmine for anyone looking to build private label beauty lines.

Here’s a closer look at some of the most innovative and private-label-friendly products I discovered on the floor:

1. Dual-Effect Anti-Wrinkle Skincare Set

This 4-step system includes a toner, serum, lotion, and cream, and the supplier claims you can see visible wrinkle reduction within just 5 minutes of use. I tested it myself at the booth and was surprised to see how quickly the formula absorbed and plumped the skin.

• Ideal for brands focusing on anti-aging or express beauty results
• Great for retail, ecommerce, or beauty salons that offer trial-size or gift sets

2. Skin Whitening & Brightening Series

This line is formulated to target melanin at four biological pathways, promoting a brighter and more even skin tone without using aggressive acids or steroids.

• Perfect for markets in Southeast Asia, the Middle East, and Africa, where skin-brightening products are in high demand
• Includes toner, essence, cream, and specialized masks
• Clinically visible results in as little as 7–14 days of use

3. Hibiscus Mushroom Hair Care

Yes, mushroom-based shampoo is now a thing! This series uses fermented hibiscus mushroom extract to nourish the scalp, reduce dandruff, and strengthen hair from root to tip.

• Includes bio-based shampoo and conditioner
• Custom formulations available for: volume boost, oil control, hydration, anti-itch
• Eco-conscious and sulfate-free

4. Freeze-Dried Powder Sets (Anti-Wrinkle + Spot-Lightening)

This supplier is one of the few in China who specialize in biological freeze-drying technology for skincare.

• The anti-wrinkle powder visibly smooths fine lines on one side of the face in under 3 minutes, making it ideal for before-after demo marketing
• The spot-lightening kit can reduce up to 80% of dark spots within 30 days, using botanical actives instead of harsh bleaching agents

These are high-impact, high-ticket items perfect for premium skincare brands.

5. Sensitive Skin Repair System

This line is designed specifically for hypersensitive skin types suffering from hormone face, redness, irritation, or eczema-like symptoms.

• Uses a barrier-repairing peptide formula
• Offers fast calming effects after just one application
• Well-suited for dermatology clinics, spas, or cosmeceutical brands

6. Salon-Exclusive Professional Treatments

Developed for use in beauty salons and aesthetic clinics, this collection includes high-concentration serums, repair masks, and peptide ampoules.

• Delivers visible results in a single session, ideal for customer retention
• Targets hydration, lifting, brightening, and post-laser repair
• Comes in large-capacity packaging optimized for professional use

7. Anti-Acne System with Overnight Results

If you’re looking to build a targeted acne solution brand, this 4-step system is worth noting:

• Soft foam cleanser with micro-bubble technology for deep pore cleansing
• Oil-control serum to reduce sebum and kill acne bacteria
• Acne freeze-dried powder to treat inflammation
• Final serum to accelerate skin repair

Results are visible within 12–24 hours, especially on stubborn, cystic acne.

📽️ Curious to see what these products look like in real life?
🎥 Watch our full CIBE 2025 walkthrough video here:

Final Thoughts

Private label skincare is a low-risk, high-reward opportunity for B2B buyers looking to build or expand their beauty product offerings. Whether you’re a salon owner, online brand, or wholesaler, Chinese manufacturers offer the infrastructure, quality, and flexibility needed to succeed globally.

Just remember:

• Start lean, but think long-term
• Choose reliable suppliers with experience in regulatory compliance
• Focus on brand positioning and customer service—this is where the real margin lies

And if you need help sourcing the right manufacturer or want us to introduce you to someone from CIBE, feel free to reach out. We’re here to help you bridge the gap and build something real.

About the Author

Karen Wang

References

• CIBE 2025 Exhibitor List: https://en.chinainternationalbeauty.com/exhibitor/list
• Statista – Global Skincare Market: https://www.statista.com/topics/3137/skincare-market/