Systemkosmetik Alternative: When custom formulation development is the better choice

Systemkosmetik Alternative: When custom formulation development is the better choice
7

CEO & Founder at Labtree GmbH
System cosmetics providers deliver pre-configured care lines made of modular building blocks. If brands aim for a differentiated positioning with individual formulation development, it is worth looking into alternatives with their own depth of development.
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The topic is short and compact
System cosmetics providers supply pre-configured skincare lines made from modular components.
An alternative makes sense if differentiation through formulation, active ingredient combination or sensory profile is part of the brand positioning.
Labtree offers 1,000+ proprietary formulations as a development basis, its own laboratory and integrated production in a structured 5-phase process.
System cosmetics providers position themselves on pre-configured care lines. Brands typically come with the following requirements:
Fast market access with a complete care line without own development work
Modular selection from a defined product portfolio
Standardized care concepts for clearly defined target groups
Low effort in formulation coordination because the building blocks are already coordinated with each other
For brands that are positioned in a clearly defined care segment and do not require individual formulation development, system cosmetics is an established option.
What system cosmetics providers are typically chosen for
System cosmetics providers position themselves on pre-configured care lines. Brands typically come with the following requirements:
Fast market access with a complete care line without own development work
Modular selection from a defined product portfolio
Standardized care concepts for clearly defined target groups
Low effort in formulation coordination because the building blocks are already coordinated with each other
For brands that are positioned in a clearly defined care segment and do not require individual formulation development, system cosmetics is an established option.
When the comparison between Systemkosmetik and Labtree becomes relevant
An alternative becomes relevant when:
The brand positioning cannot be represented in a modular building block system
Differentiation via formulation, combination of active ingredients, or sensory profile is part of the strategy
An own formulation base should be available at the partner's site to serve as a starting point for individual customization
In-house laboratory development is part of the process and adjustments are to be made without external commissioning
Scalability beyond the modular building block range is required
Structural differences in the offering model
The key difference lies in the logic of the offering. Systems cosmetics providers typically work with a predefined product inventory. Brands select from a platform assortment and combine products into a line. The formulations are fixed, with the depth of customization usually limited to fragrance, color, and packaging.
An integrated development partner works with a formulation library as a starting point for customized development. The 1,000+ proprietary formulations are not a platform inventory list, but an agile development base. Brands see early on which base fits their positioning and continue developing from that point forward.
What Labtree offers as an alternative
Labtree positions itself as an integrated development partner with its own capacities. Three modules distinguish the offer from a system modular kit:
1. Own formulation base as a starting point for development. Over 1,000 of our own formulations serve as a starting point for individual adaptation, not as a closed platform range.
2. Own laboratory and development expertise. Formulations are specifically developed, tested, and adapted. Active ingredient concentrations, carrier systems, sensory profile, and fragrances can be individually modified.
3. Implementation through to production from a single source. Packaging, design, approval, and production are interlinked in a structured 5-phase process, rather than being taken from a modular kit.
Comparison: System Cosmetics vs. Integrated Development Partner
Dimension | System Cosmetics (Modular System) | Integrated Development Partner (Labtree) |
|---|---|---|
Offer Logic | Preconfigured range | Formulation base as a starting point for development |
Formulation customization | Usually fragrance, color, packaging | Active ingredient concentration, carrier system, sensory profile, fragrance |
In-house laboratory | Variable | Yes, in-house |
Own formulation base | Closed platform inventory | 1,000+ own formulations as a development base |
Depth of differentiation | Limited to line modularity | Possible down to formulation level |
Time-to-Market | Fast for standard lines | Up to 50% faster through parallel implementation |
In-depth sources: The legal basis for all cosmetic products marketed in the EU is the EU Cosmetics Regulation (EC) No 1223/2009. In Germany, the health assessment of ingredients is the responsibility of the Federal Institute for Risk Assessment (BfR). Industry information and market data are published by the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW).
The 5-phase process of Labtree
Conceptualization: An idea is turned into a clear development path based on our own formulation base. Matching the concept with a suitable product base from a pool of 1,000+ formulations.
sampling: Standard samples of pre-qualified formulations are dispatched from the sample warehouse within 24 hours, free of charge to customers. Initial sensory evaluation on real products.
Individualization: Targeted adjustments to the formulation base, instead of combining from a modular kit. active ingredients, concentrations, scent and sensory profile are aligned with the brand positioning.
Prototyping: Product and packaging are developed further in parallel. Design, approval, and production capabilities are considered at an early stage.
Production: Seamless transition into production, since manufacturing feasibility was already taken into account during the prototyping phase.
Related articles: Private Label Cosmetics Guide · White Label Cosmetics Advantages · How to start a cosmetics line Guide
System cosmetics providers are the right choice if:
The brand is positioned in a clearly defined skincare segment and is reflected in a standard line
The need is primarily for fast market access with low development effort
Differentiation occurs through brand, story, and packaging, not through formulation
Labtree is the suitable alternative if:
Differentiation through the formulation is part of the brand positioning
An own formulation base is desired as a starting point for development, rather than a closed product range
Active ingredient concentrations, sensory profile, and carrier systems are to be individually customized
System cosmetics providers are an established option for brands looking for a complete skincare line from a modular system. An integrated alternative like Labtree makes more sense if the brand positioning requires individual formulation development, starting with your own formulation base, your own laboratory, and integrated production in a structured 5-phase process.
The choice depends on how deep the differentiation should go at the product level.
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FAQ
Does Labtree have its own laboratory?
Yes. Labtree has its own development expertise, including a laboratory. This means that formulations can not only be selected, but specifically developed, tested, and adjusted. Additionally, smaller test batches can be produced in-house in order to validate products early on in real conditions and safely transfer them to production.
How does Labtree differ from system cosmetics providers?
System cosmetics providers work with a preconfigured platform range. Brands choose from fixed building blocks and usually differentiate via label, fragrance, and packaging. Labtree works with a formulation basis of 1,000+ proprietary formulations as a starting point for individual development; active ingredient concentrations, carrier systems, and sensory profile are customizable.
Are the 1,000+ formulations a closed range?
No. The formulations serve as a basis for development, not as a closed platform inventory. Brands can see early on which basis fits their positioning and are then developed further individually, instead of being combined from a fixed range.
How quickly are samples available at Labtree?
Standard samples of pre-qualified formulations are shipped from the sample warehouse within 24 hours. Shipping is free of charge for customers.
When is formula cosmetics still the better choice?
If the brand positioning can be mapped to a standard care range, the primary need is for quick market access with low development effort, and differentiation takes place via brand, story and packaging, not via formulation.
How long does custom development take at Labtree?
White-label products based on pre-qualified formulations: 2 to 3 months. Individual new developments: 3 to 6 months. Due to parallel implementation, an acceleration of up to 50 percent compared to sequential processes is realistic.
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