Inside Beauty’s White Label Boom: Opportunities, Challenges, and the Fight for Brand Differentiation
The beauty industry is currently in an era of hyper-entrepreneurship, and with that comes high levels of accessibility. With the right Instagram aesthetic, a compelling founder story, a Shopify site, and a few thousand dollars, virtually anyone can launch a beauty brand. However, beneath this lies white labeling, a quieter, less visible sector that currently powers a significant chunk of global beauty launches.
This sector, valued at $9.21 billion in 2024 and projected to reach $24.03 billion by 2033 with a CAGR of 11.5% from 2026 to 2033, enables entrepreneurs to brand preformulated products as their own, especially for indie beauty and influencer-led lines. From moisturizers to masks, an increasing number of products lining shelves and feeds are the output of the same few labs, with many brands beginning not with bespoke R&D, but with ready-made formulas and factories waiting to slap a name on a jar. While private and white labeling has created a low-barrier entry point for aspiring entrepreneurs, the model is fraught with ethical concerns, limited differentiation, and a growing saturation that threatens long-term brand equity.
The Mechanics of the Market
White or private labeling in beauty refers to the practice of sourcing preformulated products from a manufacturer and rebranding them for resale. The difference between the two terms is largely semantic. “Private labeling, white labeling—it’s the same product, just with different labels,” explained Ginger King, a cosmetic chemist with over 30 years in the industry. King is the founder of Grace Kingdom Beauty, a cosmetic product development company.
“If I have this formula done, I can sell to [A or B or C]. It’s the same baby—they’re all just adopting it,” she continued. The appeal of private labeling is immediacy. It comes with low investment, quick time to market, and oftentimes, the illusion of owning a brand. With just a few thousand dollars, anyone can be a “founder.” This democratization of beauty entrepreneurship is both its power and its Achilles’ heel.
For David Chung, CEO of iLABS, the surge in demand was a signal to launch his innovation-forward and research-driven contract manufacturing company during the pandemic. “There was a real shortage of manufacturers who focused on R&D,” he told BeautyMatter. “Most are just mass-produced commodity items. I wanted to create a company that brought real innovation to brands,” he said.
iLABS now operates dual facilities in New Jersey and South Korea, catering to brands that juggle both Western and Asian markets. While white labeling may suggest a lack of original solutions to many, Chung said that what sets companies like his apart is a hybrid model—offering validated library formulas for smaller players, while still investing in next-generation R&D for ambitious brands seeking exclusivity.
A Market of Opportunities—and Limits
White labeling unlocks possibilities for dermatologists, estheticians, and content creators looking to turn their communities into commerce. However, as the market matures, the cracks are starting to show. “It’s a viable entry strategy if you don’t have a lot of capital,” said King. “But if you want to build a sustainable brand with purpose, you shouldn’t be using private label. It’s for kindergarteners. It’s a way to get your feet wet,” she suggested.
Even for those who start strong, the ceiling is quickly reached. Brands don’t own the formulation, and should the manufacturer stop production, or raise prices, as many industries did during the pandemic, entrepreneurs are left scrambling. “There’s no lifeline for you,” warned King. “During COVID, I had multiple clients come to me because their private label suppliers vanished overnight.” Moreover, competition is cutthroat. “Only a few become successful,” Chung added. “You still need capital, marketing, distribution, etcetera. It’s not enough to just have a product.”
