The topic is short and compact
Catalog systems enable rapid market entry, but limit differentiation via the formulation.
The same base is regularly used by many brands, making the INCI list virtually identical.
A new development based on an existing formulation library takes significantly less time than developing from scratch.
So läuft die Entwicklung bei Labtree
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Konzeptionierung
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Bemusterung – Standardmuster in 24 h
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Individualisierung
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Prototyping
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Produktion
White Label 2–3 Monate · Private Label 3–6 Monate · Produktion ab 1.000 Stück
System cosmetics refers to catalog-based manufacturing in which brands choose from pre-developed, standardized base formulations. The base, such as an oil-in-water emulsion, an anhydrous balm, or a surfactant mixture, is already stabilized and tested.
The brand selects standard packaging, optionally a fragrance from a selection, and adds their own artwork. For market entry, product range expansion without technical demands, or an initial market validation, this is an economically sensible path.
Pre-tested base, resulting in short lead times and low initial risk.
Selection instead of development: fragrance, packaging, and artwork are configured.
Sensible for market validation and simple product range expansion.
What system cosmetics are and what they are good for
System cosmetics refers to catalog-based manufacturing in which brands choose from pre-developed, standardized base formulations. The base, such as an oil-in-water emulsion, an anhydrous balm, or a surfactant mixture, is already stabilized and tested.
The brand selects standard packaging, optionally a fragrance from a selection, and adds their own artwork. For market entry, product range expansion without technical demands, or an initial market validation, this is an economically sensible path.
Pre-tested base, resulting in short lead times and low initial risk.
Selection instead of development: fragrance, packaging, and artwork are configured.
Sensible for market validation and simple product range expansion.
Where the model reaches its limits
With a growing brand and broader distribution, structural limits become apparent. The same base is used by many labels, meaning the INCI list is practically identical. As soon as retailers, the trade press, or customers expect genuine differentiability, the model is no longer sustainable.
In addition, there are technical limits. Special sensory profile, a specific active ingredient profile, or demanding formats such as high-coverage concealer or transfer-resistant textures cannot be derived from a standard base. Availability is also shared: bottlenecks affect all brands on the same base at the same time.
Identical INCI list across many brands.
Technically demanding formats cannot be derived from a standard base.
Supply bottlenecks affect all users of the same base at the same time.
The usual compromise and why it is unnecessary
Traditionally, brands face a tough choice: either catalog goods with a short lead time but no differentiation, or a completely new development with a correspondingly long duration.
This contrast can be resolved when development does not start from scratch. If a library of proven, stability-tested base formulations is available, a project can start on a resilient foundation and be customized from there. This combines the speed of the catalog with the result of a custom development.
Start on a proven basis instead of developing from scratch.
Customization of active ingredients, sensory profile, and nuance.
The formulation remains exclusive in the end.
Why development and manufacturing belong together
The greatest risk in cosmetics development lies at the interface between the laboratory and the plant. If a formulation is created in isolation in a beaker without knowing the future production plant, problems only arise during the pilot batch.
Typical consequences include an emulsion that breaks under industrial shear force, a viscosity that blocks the dosing pump, or a filling temperature that creates streaks in color cosmetics. When development and manufacturing are co-located, plant parameters are known from the very first sample and are incorporated into the formulation.
Emulsion breakage under industrial shear force as the most common scale-up error.
Viscosity and dosing behavior belong in the sampling phase.
Plant parameters are known from the first sample, not just during the pilot batch.
The mechanics behind this are described in Development and production from a single source.
The process in five phases
Dimension | System cosmetics provider | Integrated development partner (Labtree) |
|---|---|---|
Entry point | Selection from pre-configured line | From product idea onwards |
Own formulation base | Catalog formulations, non-exclusive | Over 1,000 own formulations, exclusive customization possible |
Own laboratory / development | Typically not part of the model | Yes, in-house in Hamburg; test batches in-house |
sampling | Catalog samples | Standard samples within 24 hours, free of charge |
Minimum quantity | Project-dependent | From approx. 1,000 units per product |
Time to market | Short for catalog products, no individual development | White Label 2–3 months, Private Label 3–6 months |
Interface development → production | Not applicable, as there is no own development | No interface break, one process in 5 phases |
Regulation and documentation | Available for catalog products, open for adjustments | PIF, safety report and CPNP carried along in the process |
Suitable for | Brands in need of standardized care lines | Established brands wanting development and production from a single source |
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 lies with the Federal Institute for Risk Assessment (BfR). Industry information and market data are published by the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW).
Regulations apply equally in both models
Regulation (EC) No. 1223/2009 applies to the EU market, regardless of the chosen manufacturing model. Cosmetic products do not undergo official pre-market approval. Instead, a responsible person based in the Union must ensure safety before market access.
This includes the product information file, the safety report with Part A and Part B, labeling according to INCI, and notification via the CPNP portal. In Germany, the Federal Institute for Risk Assessment evaluates the health risks of cosmetic ingredients. The difference between the models does not lie in these requirements, but in who bears them in the project.
Appoint a responsible person based in the EU.
Product information file and safety report prior to placing on the market.
CPNP notification as the final step before market access.
Neither of the two models is fundamentally superior. The question is whether the formulation is part of the brand promise or merely a carrier for packaging and communication.
If a standard texture with a catalog INCI meets the expectations of the product, system cosmetics is the more efficient way. As soon as sensory profile, active ingredient profile, or format become the selling point, the catalog only shifts the problem instead of solving it. In that case, having your own formulation is the more sustainable foundation.
Formulation not decisive for the purchase: system cosmetics is more efficient.
Formulation is the selling point: own development is worth it.
The question belongs before the quotation phase, not after.
The cost side is covered in the cost overview for the private label line.
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.
More useful links
FAQ
What distinguishes system cosmetics from your own formulation?
System cosmetics uses pre-developed catalog bases with limited adjustments and is suitable for a fast market launch. A brand's own formulation is created in the laboratory on a project basis, belongs to the brand, and can be freely designed in terms of sensory profile, active ingredient profile, and format.
When is a catalog system sufficient?
When a standard texture with a catalog INCI fulfills the brand promise, and differentiation is achieved through branding, packaging, and communication. For market validation and simple product range expansion, this is the more economical way.
How can you tell that the model is no longer sustainable?
On identical INCI lists in the competitive environment, on technical requirements that a standard base does not meet, and on shared supply bottlenecks that affect all brands on the same base at the same time.
Does an in-house development have to start from scratch?
No. If a library of verified, stability-tested base formulations is available, the project starts on a reliable foundation and is customized from there. This shortens development significantly compared to starting from scratch.
Why should development and manufacturing be located together?
Because the most common errors occur at the interface: An isolated formulation can break under industrial shear force or block the dosing pump. When both are combined, the system parameters are known from the very first sample.
Which regulatory obligations apply?
Both models share the same requirements: a responsible person based in the EU, a product information file, a safety report with Part A and Part B, and the CPNP notification according to Regulation (EC) No. 1223/2009. The only difference is who bears responsibility for them in the project.
