The topic is short and compact
Whether the brand receives formulation rights or merely an exclusive right of use is determined by the development contract, not by the fact that it paid for the development.
A new development is worthwhile if performance, exclusivity, or advertising value go beyond a standard base and the product goes through multiple production runs.
At Labtree, it usually takes three to six months to reach market readiness; sampling rounds, stability testing, and packaging determine the timeline.
Customize the two or three features that make all the difference, and rely on proven building blocks for the rest.
Stability testing is carried out in the final retail packaging; a subsequent change in packaging material generally requires new testing.
So läuft die Entwicklung bei Labtree
1
Konzeptionierung
2
Bemusterung – Standardmuster in 24 h
3
Individualisierung
4
Prototyping
5
Produktion
White Label 2–3 Monate · Private Label 3–6 Monate · Produktion ab 1.000 Stück
What is the difference between private label and white label?
The difference lies in how far the formulation deviates from an existing base and who owns it afterwards. With white label, the brand adopts a ready-made, tested formulation from the manufacturer and customizes it, such as in fragrance, color, or active ingredient concentration. The formulation remains with the manufacturer, and other brands can carry the same base. With private label, the formulation is created anew according to the brand's requirement profile; whether formulation rights or exclusivity transfer to the brand is governed by the contract.
Feature | White Label | Private Label |
|---|---|---|
Starting point | Tested formulation from the manufacturer | Brand's requirement profile |
Formulation | Remains with the manufacturer | Rights and exclusivity according to contract |
Time to market readiness at Labtree | Typically 2 to 3 months with standard packaging | Usually 3 to 6 months |
Testing program | Builds on existing data from the base; adjustments are reassessed | Completely new for the new formulation |
Legally, the model changes nothing regarding the brand's role. The manufacturer within the meaning of Regulation (EC) No 1223/2009 is whoever places a product on the market under their own name or trademark (Art. 2(1)(d)). The brand is thus the responsible person under Art. 4 and can transfer this role to the contract manufacturer via a written mandate. When an adapted base is sufficient is covered in the article White Label Cosmetics: Advantages and Limits.
When is redevelopment worthwhile?
A new development is worthwhile if at least one of the following three conditions is met and the product remains in the assortment long enough to distribute the development and testing costs over multiple reorders.
Performance is beyond any standard base
In color cosmetics, this is frequently the case. A high-coverage concealer that does not settle into fine lines, a transfer-resistant skin tint, or a stick with high pigment load require an individual harmonization of pigment dispersion, film formers, and wax matrix. In skincare, this applies to serums with oxidation-sensitive active ingredients or creams intended to maintain a light sensory profile despite a high lipid content.
The formulation must remain exclusive
When brand positioning or retail partners demand a product that no competitor carries under a different label, a shared base is not sufficient. New development creates the prerequisite for this; exclusivity is ultimately secured in the contract (see the next section).
The claim requires dedicated substantiation
Regulation (EU) No 655/2013 cites evidential support in its annex as one of its common criteria: A claim must be supported by adequate, verifiable evidence appropriate to the nature of the claim. If a performance characteristic such as wear time on the skin or moisturizing efficacy is to be the central selling point, it is advisable to plan the formulation and study design jointly, rather than attempting to substantiate a standard base retroactively.
A short product life cycle argues against new development. For trend-driven products that are phased out after one or two batches, development and testing programs are distributed across too few units; an adapted white-label formulation is then usually more economical.
Who owns the formulation after development?
The formulation belongs to the brand only if the contract expressly stipulates this. The fact that the brand pays for the development does not automatically grant it an entitlement to the complete formulation data without a contractual provision. Therefore, you should address at least these points in the development contract:
Type of right: transfer of formulation rights or exclusive right of use for the brand
Timing: for example, upon acceptance of the formulation or upon payment of the development costs
Scope of release: qualitative and quantitative composition, raw material specifications, manufacturing instructions, and test results
Change of manufacturer: whether and in what form the documents are released if production is relocated
In Germany, a formulation is generally protected as a trade secret. The Trade Secrets Act (Section 2 No. 1 GeschGehG) only protects information if its legitimate holder takes reasonable secrecy measures. A non-disclosure agreement prior to the first briefing and controlled access to formulation data are therefore essential to any private label project. What such an agreement should cover is described in Confidentiality with the contract manufacturer: NDA and formulation ownership.
One point is often overlooked: the responsible person must keep a product information file containing the safety report available for each product (Art. 11 Regulation (EC) No 1223/2009). If the manufacturer retains the formulation data, it must be contractually ensured that the brand can keep this file complete and accessible to the authorities.
How does the private label development process work?
At Labtree, private label development follows five steps: conceptualization, sampling, customization, prototyping, and production. How long the usual three to six months actually take depends primarily on the number of sampling rounds, the duration of stability testing, and the availability of packaging materials.
Conceptualization: The requirement profile is translated into verifiable target values, such as opacity, finish, viscosity, pH range, target price per unit, packaging type, and planned advertising claims. This is where it becomes clear which goals limit each other, for example, a high pigment load and a very light skin feel.
sampling: Initial laboratory samples are created in the lab. Evaluation is carried out on the physical sample, not on the data sheet.
Customization: Iterations on texture, shade, fragrance, and active ingredient concentration. Any change to emulsifiers, preservatives, or pigment proportions can call previously achieved stability back into question.
Prototyping: Packaging and design run in parallel with formulation development; a near-production prototype provides assurance before final production approval. Stability and preservation testing usually only begin with the final formulation in the intended packaging material.
Production: Transfer to the final batch size, filling, and batch release.
The transition from the laboratory to production scale is critical. The stability guidelines from Cosmetics Europe recommend testing samples from batches produced with production-representative equipment during development, because equipment type, process, and batch size influence the result. Typical findings during scale-up include viscosity deviations after homogenization in the vessel, altered droplet sizes in emulsions, or color variations because pigment dispersion runs with different shear forces in a larger batch.
Which tests and documents does the regulation require?
For a newly developed formulation, there is no testing history; the program starts from scratch. Prior to placing on the market, Regulation (EC) No 1223/2009 requires a safety assessment with a safety report (Art. 10), a product information file (Art. 11), which must be kept for ten years from the date on which the last batch was placed on the market, and notification in the CPNP (Art. 13). The European Commission points out that products are only notified once via the central notification portal CPNP.
Stability
According to the Cosmetics Europe guidelines, accelerated testing often runs at 37 °C, 40 °C, or 45 °C over one or more months; temperature and duration depend on the product type. For shade ranges, the shades representing the extremes of stability should be tested. For fragrance variants, it may be advisable to test each variant because fragrances interact more strongly with the product than color shades do.
Preservation
Aqueous formulations generally undergo a preservation challenge test in accordance with ISO 11930. If the preservative system is altered during customization, the test must be repeated with the final formulation.
New Ingredients
If the formulation relies on a raw material with limited data, the safety assessment becomes more complex. The SCCS Notes of Guidance (SCCS/1647/22) describe which toxicological data and exposure estimates are used for the assessment of cosmetic ingredients. It is recommended to check data availability with the raw material supplier before finalizing the raw material in the formulation. The procedure and scope of testing are detailed in Stability and Safety Testing for Cosmetics.
What are the limits imposed by packaging materials and bottling?
Packaging is not a downstream design issue in new product development, but part of formulation development. The Cosmetics Europe guideline cites two types of interactions: between the product and container, such as adsorption, corrosion, chemical reaction, and migration, as well as barrier properties against oxygen and water vapor. Stability testing should therefore be carried out in packaging made from the exact same material in which the product is sold. If there are multiple sizes, the guideline recommends testing the smallest container.
Migration is not a theoretical risk. Murat et al. (2020) identified 35 compounds in seven cosmetic packaging items made of polypropylene, polyethylene, and styrene-acrylonitrile copolymer, including phthalate plasticizers and degradation products of antioxidants. The authors recommend migration studies for toxicologically relevant substances. In practice, this means: material selection and safety assessment must be brought to the table early on.
Further limitations stem from filling. Hot-pour sticks and balms require defined pouring temperatures and cooling profiles, serums in dropper bottles require a tight closure system, and not every airless dispenser dispenses every viscosity. Packaging suppliers have their own minimum order quantities that must align with the planned product volume. If packaging is changed after stability testing has been completed, the test generally needs to be repeated for the new container.
A new development makes sense for the two or three characteristics that make the difference on the shelf; for everything else, proven building blocks are the more robust choice. Anyone redefining active ingredient combination, carrier system, preservation, fragrance, and packaging simultaneously multiplies sampling rounds and stability risk, without each of these features making a difference to the customer.
Concealer: proprietary pigment blend and shade range, but a proven emulsion system
Serum: proprietary active ingredient combination, but a dispenser with available compatibility data
Cream: proprietary sensory profile, but a proven preservation system
Many brands combine both models within a single portfolio: Private label for the product that defines the brand, white label for complementary products like cleansing or body care. Organizationally, this is easier with a manufacturer offering both models, because formulation data, safety reports, and repeat production then do not run through two separate parties.
Labtree works as a B2B cosmetic developer and cosmetic manufacturer with its own laboratory and production capacities in Germany. Formulation development, sampling, manufacturability assessment, and cosmetics production cover makeup such as skin tints, concealers, and sticks just as much as serums and creams. The minimum order quantity is generally 1,500 units per product, depending on product type, filling volume, and packaging. Where projects typically get bogged down is shown in Overengineering in der Kosmetikentwicklung vermeiden; the page Kosmetik entwickeln lassen describes the process of a new development.
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FAQ
Can a manufacturer produce both white label and private label for the same brand?
Yes, provided the manufacturer offers both models. It is common practice to develop the flagship product from scratch as a private label and offer complementary products based on customized white-label formulations. Nevertheless, an individual safety report, product information file, and CPNP notification apply to each product.
Who owns the formulation in private label?
That is determined solely by the contract. A transfer of formulation rights or an exclusive right of use is possible; if there is no regulation in place, the brand has no secured claim to the complete formulation data. The magazine article Non-Disclosure with the Contract Manufacturer: NDAs and Formulation Ownership covers details on this.
Can I take a private label formulation to another manufacturer?
Only if the contract provides for the release of composition, raw material specifications, and manufacturing instructions. The new manufacturer must recreate the formulation on their equipment and check whether viscosity, color, and stability remain the same. How such a transition works is described in the article 'Changing cosmetics manufacturers: How a structured transition works'.
How much does private label development cost?
There is no reliable flat rate because the costs depend on the project. The main cost drivers are the number of sampling rounds, the testing scope comprising stability, challenge testing, skin compatibility, and efficacy studies if needed, the safety report, and custom packaging. A detailed breakdown is provided in the article Private label cosmetics line: what you need to consider for your budget.
Does my brand need to act as the responsible person?
Anyone who places a product on the market under their own brand is considered a manufacturer under Regulation (EC) No 1223/2009 and is therefore the responsible person. This role can be transferred to the contract manufacturer by written mandate. It is important that the contract specifies who maintains the product information file and handles the notification.
Can I start with White Label and switch to Private Label later?
Yes, this is a common path once sales volume and the need for differentiation justify an own formulation. The new formulation requires its own safety report and an updated product information file; notification and INCI labeling must be adjusted accordingly. Plan the transition so that remaining stocks of the old version can be sold off.
What is the minimum order quantity for private label?
At Labtree, the minimum order quantity is generally 1,500 units per product, depending on the product type, fill size, and packaging. In addition, packaging suppliers set their own minimum purchase quantities, especially for custom-printed or custom-manufactured packaging. Learn more about what makes up minimum quantities in the article MOQ in Cosmetics Explained.
