How to Start a Cosmetic Brand in 2025: A Simple Step-by-Step Guide

The Indian skincare and cosmetics industry is experiencing unprecedented growth. According to a report by Statista (2024), the beauty and personal care market in India is projected to reach US$9.71 billion by 2028, driven by increasing disposable income, urbanization, and consumer awareness of skin health. For entrepreneurs, this presents a golden opportunity to launch their own skincare brand.

However, setting up an in-house manufacturing facility requires significant capital, regulatory approvals, and technical expertise. This is where third-party manufacturing (also known as contract manufacturing or private labeling) becomes a cost-effective and scalable solution.

In this article, we’ll explain how to start your skincare brand in India using third-party manufacturing, step by step.

1. Conduct Market Research

Identify your target audience—teenagers dealing with acne, millennials seeking anti-aging, or eco-conscious buyers preferring herbal products.

• Tools like Google Trends and Statista can reveal rising skincare demands.

• Example: Ayurveda-based skincare is a $1.4 billion segment in India and growing (IBEF, 2023).

2. Define Your USP (Unique Selling Proposition)

Ask yourself: Why should a customer choose my brand over others?

• Organic & Herbal Focus (chemical-free formulations).

• Problem-Solution Products (anti-acne, pigmentation control, PCOS-friendly).

• Premium Ingredients (saffron, Vitamin C, retinol, etc.).

• Eco-Friendly Packaging (sustainable, biodegradable).

3. Partner with a Reliable Third-Party Manufacturer

When choosing a manufacturer, ensure they are:

• ISO 9001:2015 Certified & FDA Approved

• Experienced in cosmetic and Ayurvedic formulations

• Equipped with modern R&D and quality control labs

• Offering custom formulations, packaging design, and labeling services

Example search terms to find them: “third-party cosmetic manufacturer in India,” “private label skincare India,” or “Ayurvedic cosmetic contract manufacturing.”

4. Product Development & Sampling

• Work with the manufacturer to develop formulations based on your USP.

• Request samples and conduct product testing for quality, texture, fragrance, and efficacy.

• Ensure they comply with BIS safety standards.

  
  

5. Legal & Regulatory Compliance

• Obtain Company Registration (LLP/Pvt Ltd.)

• Apply for GST & Trademark Registration

• Ensure your products have Manufacturing License under Drugs & Cosmetics Act (handled by manufacturer).

• Protect your brand name and logo legally.

6. Packaging & Branding

Packaging is crucial for first impressions and shelf appeal. Choose designs that highlight:

• Key ingredients (Neem, Aloe Vera, Vitamin C, etc.)

• Eco-friendly practices (recyclable packaging, minimal plastic use).

• Modern minimalistic branding aligned with global skincare trends.

7. Marketing & Distribution

• E-commerce: Sell on Amazon, Nykaa, Flipkart, and your own Shopify/WooCommerce site.

• Social Media Marketing: Use Instagram Reels, YouTube shorts, and influencer collaborations.

• Offline Sales: Tie up with salons, spas, and retail stores.

• Content Marketing & SEO: Publish blogs like “Best Herbal Face Wash for Acne in India” to rank on Google.

8. Scale Your Brand

Once your products gain traction:

• Expand to new product categories (serums, sunscreens, body butter).

• Explore international exports by complying with FDA/EU cosmetic regulations.

• Invest in AI-driven customer analytics for retention and personalization.

Cost of Starting a Skincare Brand in India with Third-Party Manufacturing

The investment required depends on your scale:

• Initial MOQ (500–1000 units): ₹20,000 – ₹2,00,000

• Branding, Packaging & Design: ₹30,000 – ₹1,00,000

• Digital Marketing & Website: ₹50,000 – ₹2,00,000

• Total Initial Budget: Around ₹2–5 lakhs

This makes skincare entrepreneurship affordable for startups compared to setting up a factory worth crores.

Why Work with Ketaki Industries?

Starting a cosmetic brand can be tricky, but Ketaki Industries makes it simple.

Here’s how we can help:

• Low Minimum Orders: Ideal for new and upcoming brands

• Top Quality Ingredients: Premium cosmetic and soap, clinically proven actives, and herbal extracts

• Expert Formulation Support: Our R&D team helps develop customized and effective products

• Packaging Assistance: Multiple options from economy to luxury to suit your market

• Regulatory Compliance: We ensure your product meets all legal and safety requirements

Whether you’re a startup launching your first brand or an established company scaling product lines, Ketaki Industries provides end-to-end third-party manufacturing, private labeling, and custom formulation services.

(Learn more about our services at Ketaki Industries Website)

Get in Touch: Email ketakiindustries2013@gmail.com to start your journey.

Common FAQs

1. What is the minimum order quantity (MOQ) for private label skincare in India?

Most manufacturers offer an MOQ of 500–1000 units per product, ideal for startups.

2. How long does product development take?

Custom formulation takes 4–8 weeks, depending on complexity.

3. Do manufacturers also provide packaging and labeling?

Yes, most third-party manufacturers provide end-to-end services including formulation, packaging, labeling, and regulatory compliance.

4. Is third-party manufacturing profitable for skincare startups?

Yes. With low investment, scalability, and expert-backed formulations, it is one of the most profitable and low-risk business models in India’s beauty industry.

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