Ten questions for a cosmetics contract manufacturer before you sign

Ten questions for a cosmetics contract manufacturer before you sign

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Jorit Tessmann

Jorit Tessmann

CEO & Founder at Labtree GmbH

Choosing a contract manufacturer determines quality, adherence to schedules, and the question of who ultimately owns the formulation. These ten questions cover the points that arise after the most contract agreements

The topic is short and compact

Clarify in writing who owns the formulation and whether you will receive the complete quantitative formulation.

Minimum order quantities apply per shade and per pack, not per product line.

Without physical laboratory samples and documented stability testing, a reliable release is not possible.

This is the most important question of the entire conversation, and it is most often asked too late. There is a fundamental difference between a formulation that belongs to you and a formulation that the manufacturer provides to you. In the second case, you cannot move production without having the product redeveloped. This dependency only becomes visible when capacity problems, quality defects, or price increases occur.

Demand a written agreement that clearly addresses two points: First, who owns the formulation. Second, whether you will receive the complete quantitative formulation with exact percentages and trade names of the raw materials. A pure INCI list is not sufficient because it discloses neither concentrations nor specific raw material qualities, making reproduction by another manufacturer impossible.

  • Written assignment of formulation ownership, not just a verbal promise.

  • Complete quantitative formulation with percentages and raw material trade names.

  • Clear rules on what happens to the documents upon termination of the cooperation.

If a manufacturer is unwilling to agree to these points in writing, that is a solid indication of later dependency. A structured manufacturer assessment should place this point at the very top of the list.

Question 1: Who owns the formulation and will I receive the complete formulation details?

This is the most important question of the entire conversation, and it is most often asked too late. There is a fundamental difference between a formulation that belongs to you and a formulation that the manufacturer provides to you. In the second case, you cannot move production without having the product redeveloped. This dependency only becomes visible when capacity problems, quality defects, or price increases occur.

Demand a written agreement that clearly addresses two points: First, who owns the formulation. Second, whether you will receive the complete quantitative formulation with exact percentages and trade names of the raw materials. A pure INCI list is not sufficient because it discloses neither concentrations nor specific raw material qualities, making reproduction by another manufacturer impossible.

  • Written assignment of formulation ownership, not just a verbal promise.

  • Complete quantitative formulation with percentages and raw material trade names.

  • Clear rules on what happens to the documents upon termination of the cooperation.

If a manufacturer is unwilling to agree to these points in writing, that is a solid indication of later dependency. A structured manufacturer assessment should place this point at the very top of the list.

Questions 2 and 3: What are the minimum quantities and how are they calculated?

Minimum order quantities are often communicated as a single number, but in practice, they are multi-layered. What matters is not the minimum quantity for the product line, but the minimum quantity per individual variant. For a foundation range with eight shades, the minimum quantity usually applies per shade, which multiplies the actual initial order.

In addition, there is the minimum quantity at the raw material level. Special active ingredients and custom pigments are often only supplied in large containers, the costs of which are fully allocated to the first batch. Therefore, ask specifically about the minimum quantity per shade, per container size, and about raw materials with their own minimum purchase quantities.

  • Minimum quantity per shade and per container size, not per product line.

  • Raw materials with their own minimum purchase quantities and their cost allocation.

  • Regulations for reorders, which often have different minimum quantities than the first batch.

Only with this information can the actual capital commitment be calculated. Further figures can be found in the overview of production costs and small-batch production.

Questions 4 and 5: Create physical laboratory samples, and how many loops are included?

A manufacturer who wants to go straight into production without physical samples shifts the entire risk onto you. Physical laboratory samples are the only way to realistically evaluate texture, color, fragrance, and application behavior. Descriptions and data sheets are no substitute for this.

Equally important is the question of how many adjustment loops are included in the agreed price and how much each additional one costs. Adjustment loops are the norm, not the exception. Anyone who does not establish a clear regulation here will later negotiate supplements under time pressure, which regularly leads to conflicts and delays.

  • Physical samples as a binding part of the development process.

  • Clearly defined number of included adjustment loops and the price per additional loop.

  • Realistic specification of the duration per loop to make the schedule reliable.

These points belong in the bidding phase and not in the project phase. A comparison of offers is only meaningful if these services are each demarcated in the same way.

Question 6: How do you ensure shade consistency and pigment stability?

In color cosmetics, the reproducibility of the shade over multiple batches is the most technically demanding requirement. Ask specifically how the color is approved. Is the assessment done visually or spectrophotometrically with a defined tolerance? Only the second option is reproducible and resilient in the event of a dispute.

Also ask about the handling of pigment dispersion. The most common cause of color deviations between batches is not the formulation, but incomplete dispersion on a larger scale. A manufacturer who documents dispersion times as binding process parameters and uses pre-dispersed pigment concentrates delivers significantly more consistent results.

  • Spectrophotometric release with a defined tolerance instead of visual assessment.

  • Documented dispersion times as binding process parameters.

  • Handling of batch variations in pigment raw materials.

Without these definitions, each batch is discussed anew, which delays releases and is perceived in the trade as a quality defect.

Questions 7 and 8: How do you check packaging compatibility, and who procures the packaging?

The formulation and packaging are one system and must be tested together. Components of the packaging can migrate into the formulation, and the packaging can bind preservatives, causing the effective concentration to fall below the validated threshold. Both are only visible after weeks and can then only be resolved through redevelopment.

Therefore, clarify whether the compatibility test takes place in the final primary packaging and who procures the packaging. If you provide the packaging yourself, clarify who bears responsibility for compatibility and fillability and what happens if the packaging does not work on the line.

  • Compatibility testing in the final packaging, not in laboratory containers.

  • Clear assignment of responsibility for provided packaging.

  • Testing of fillability on the specific line before series release.

A change of packaging after completion of the tests completely invalidates the results and forces a repeat.

Question 9: What regulatory support and microbiological testing do you provide?

The legal responsibility for a cosmetic product lies with the responsible person, not automatically with the manufacturer. Therefore, clarify precisely which services the manufacturer provides and which remain with you. Do they create the product information file? Do they commission the safety assessment? Do they handle the notification in the European portal?

At the technical level, microbiological testing is crucial. Ask whether testing is conducted per batch or only on a random basis, and whether a preservative efficacy test according to ISO 11930 is performed on the final formulation in the final packaging.

  • Clear delineation of who takes over the product information file, safety assessment, and notification.

  • Microbiological release testing per batch instead of on a random basis.

  • Preservative efficacy test according to ISO 11930 on the final combination.

These points are not mere formalities. If they are missing, the product cannot be placed on the market, regardless of how good the formulation is.

Question 10: Which stability protocols do you use, and what is considered a pass?

Question 10: Which stability protocols do you use, and what is considered a pass?

Question 10: Which stability protocols do you use, and what is considered a pass?

Almost every manufacturer confirms that they carry out stability tests. The decisive factor is which protocol applies and which criteria count as passing. Ask about the duration, temperature levels, and tested parameters. Twelve weeks at an elevated temperature to predict a shelf life of 24 months, supplemented by freeze-thaw cycles and light testing, is common practice.

Just as important is the question of what happens if a test is not passed. Who bears the costs of redevelopment and retesting, and how does this affect the schedule? This regulation should be established before the project begins, because in the worst-case scenario, it determines significant amounts of money.

  • Defined duration, temperature levels, and tested parameters.

  • Clear passing criteria instead of general statements.

  • Pre-regulated cost and time consequences in the event of a failed test.

Anyone who clarifies these ten points in writing shifts the difficult discussions to the offer phase, where both sides still have room to maneuver.

FAQ

Why is an INCI list not sufficient as a formulation handover?

Because it contains neither concentrations nor specific raw material qualities and trade names. Without this information, a formulation cannot be reproduced by another manufacturer. Demand the complete quantitative formulation with percentages and raw material trade names, agreed upon in writing.

Does the minimum order quantity apply per product or per shade?

As a rule, this applies per shade and per container size. A foundation line with eight shades therefore means eight separate minimum order quantities. In addition, there are raw materials with their own minimum purchase quantities. Only with this information can the actual capital commitment of the initial order be calculated.

How many sample loops are realistic?

Several. Revision loops are the rule, not the exception. The crucial factor is that the number of included loops, the price per additional loop, and the duration of each loop are agreed upon in writing before the project begins, so that there are no negotiations over amendments under time pressure later on.

Why must the compatibility test be carried out in the final packaging?

Because formulation and packaging material influence each other. Ingredients can migrate, and the packaging can bind preservatives, causing the effective concentration to fall below the validated threshold. Changing the packaging after the tests invalidates the results and forces a repetition.

Who is legally liable for the finished cosmetic product?

The designated responsible person based in the EU, not automatically the manufacturer. Therefore, it must be contractually clear who maintains the product information file, commissions the safety assessment, and handles the notification in the European portal.

What should be regulated in the event of a failed stability test?

Who bears the costs for redevelopment and re-testing, and how the schedule will shift. This regulation belongs in the agreement before the project begins, because in an emergency, it determines significant amounts of money and the launch date.

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