The differences between private labeling and custom formulation in manufacturing cosmetics and skincare products

Beauty News

Private Label vs. Custom Formulation

#Cosmetic Manufacturing
#Custom Formulation
#private labeling

Published: 2024-06-21

Last Updated: 2025-04-17

@debbie

At Mayk, we often get inquiries from founders who say they're looking for "private label" manufacturing. But here's the thing: what they mean by private label.... is often something else differently.

And if you’re planning to create your own skincare line, understanding the difference between private labeling and custom formulation is key — especially when it comes to timelines, costs, and what’s actually possible when you’re just starting out.

Let’s break it down — and clear up some common confusion along the way.


What is Private Labeling?

Private labeling usually refers to working with a pre-existing formula — something that’s already been developed, tested, and is ready for production. In traditional private label models, you:

  1. Choose from a selection of existing products

  2. Add your logo and brand design

  3. Use the same packaging or choose from pre-approved formats

  4. Skip the time and cost of full R&D

What is Private Labeling at Mayk?

Private labeling with Mayk means selecting a pre-formulated skincare product, typically from our catalog of ready-made, ODM formulations and applying your own branding (logo, label, design). While the formulation is not developed from scratch, limited tweaks may be possible, such as:

  • Removing or adding fragrance

  • Switching to a different packaging type

  • Replacing an ingredient with an approved alternative (if compatible)

It’s not the same as creating a custom formula (OEM), but it offers a middle ground for brands who want a branded product that’s a step above white labeling.

⚠️ Important: Note that if you opt to tweak any of the ODM formulations we have, the initial MOQs will no longer apply. Typically, this route requires an MOQ of at least 1,000pcs.

Pros of Private Labeling:

1. Faster Time to Market

One of the biggest advantages of private label skincare is the ability to launch quickly. Since the formulation is already developed and tested by the manufacturer, there’s no need for full R&D or stability testing from scratch.

This means:

  • Quicker sample delivery

  • Shorter production timelines

  • Faster market entry for your skincare brand

For beauty entrepreneurs aiming to meet seasonal trends, test new markets, or get a minimum viable product (MVP) out fast, private label manufacturing is the most efficient path. Especially in Korean skincare manufacturing, where innovation cycles are fast, this speed-to-market advantage can give your brand a competitive edge.

2. Some Level of Customization

Unlike white labeling (which involves zero changes to formula or packaging), private labeling offers limited flexibility in terms of product customization. While you cannot alter the formula entirely, you can often:

  • Remove fragrance or essential oils

  • Adjust packaging material (e.g., switch to glass or recyclable options)

  • Align packaging aesthetics with your brand goals

This allows you to launch a skincare product that reflects your brand identity more closely than a completely generic product, while still avoiding the cost and time required for full custom formulation.

3. Access to Proven, Market-Tested Formulas

When you work with a private label manufacturer — especially in Korea — you gain access to formulas that have already succeeded in the market. These are often:

  • Clinically tested

  • Dermatologically reviewed

  • Used in existing Korean skincare products

This means fewer unknowns and less risk for your brand. Instead of guessing whether a formula will perform or resonate with your customers, you can rely on existing data, customer feedback, and lab validation.

4. Scalable as Your Brand Grows

Private labeling offers a stepping stone into the skincare business. It allows you to launch with minimal risk, build brand awareness, and validate your concept in the real world. As your business grows, you can gradually transition to:

  • Higher MOQs

  • More advanced packaging

  • Full custom formulation (OEM)

In fact, many Mayk clients begin with private label skincare, then shift into custom formulation once they’ve built a customer base and want something proprietary.


Cons of Private Labeling:

1. Limited Formula Flexibility

One of the biggest trade-offs with private label skincare is that you can’t fully control the formula. Any major changes — such as altering the product texture, increasing active ingredient levels, or switching emulsifier systems — require:

  • New formulation work

  • Compatibility testing

  • Stability testing

At this point, the project becomes custom formulation, and MOQs and costs increase accordingly.

So if your vision involves building a completely unique product, private labeling may not be the best fit.

2. Higher MOQ Compared to White Label

While private label skincare is more flexible than white label, it also typically requires higher minimum order quantities (MOQs). For example:

  • Mayk’s private label options usually start at 1,000 units per SKU

  • MOQs may increase if you’re changing the packaging or working with niche materials

This makes private labeling less suitable for ultra-low-volume launches, such as limited drops, pre-orders, or small boutique batches. For those, our white label catalog may be a better starting point.

3. No Exclusive Rights to the Formula

Since private label products are based on existing formulations, they are not exclusive to your brand. Other companies may use the same or similar base product — especially if they’re sourcing from the same Korean manufacturer.

You can differentiate with packaging and branding, but the underlying formula may still be used by other brands.

If owning a proprietary formula is important for your brand story or long-term IP strategy, custom formulation is the better route.

4. Packaging Customization May Be Limited

While some packaging changes are allowed in private label skincare, they come with caveats. For any packaging change to be approved:

  • It must be compatible with the formula

  • The packaging must be available in small quantities (many options have high MOQs)

  • The component must work with the manufacturer’s filling and sealing machines

If your brand has highly specific design or sustainability requirements, you may need to shift to OEM skincare manufacturing for full packaging control.

What is Custom Formulation?

If you’re looking to create a truly original skincare product — one that reflects your brand’s unique story, targets specific skin concerns, and gives you full creative control — then custom formulation is the path to take.

Also known as OEM (Original Equipment Manufacturing) in the skincare industry, custom formulation allows you to develop a product from scratch with a team of expert chemists and manufacturers. Unlike private label or white label products, custom formulation is not based on pre-existing formulas. Instead, it’s entirely built around your vision.

What is Custom Formulation at Mayk?

Custom formulation at Mayk refers to the process of creating a skincare product from the ground up — including selecting functional ingredients, developing the product’s texture and appearance, testing for stability and safety, and finalizing production.

This is not about picking a product off the shelf and putting your label on it. It's about working with us to design a new formula tailored to your brand's goals, values, and target audience.

With custom formulation at Mayk, you can provide input on:

  • The type of product you want (e.g. toner, serum, moisturizer, essence, cleanser)

  • The skin concerns you want to address (e.g. acne, hyperpigmentation, dryness, barrier repair)

  • The texture or finish you want (e.g. lightweight gel, milky lotion, creamy balm)

  • The ingredients you love (or want to avoid) — like niacinamide, panthenol, ferments, peptides, etc.

  • The fragrance profile — whether you want it scented, unscented, or essential-oil-free

  • The benchmark product that you're using as a texture reference (read more about benchmark products here)

Then, our formulation team in Korea begins developing a unique product — based on your brief, market trends, and formulation science.

What's included in Custom Formulation?

At Mayk, our custom formulation (OEM) service includes:

  • R&D (research & development): We pair you with the right manufacturer and lab based on your product goals. The lab formulates an initial sample based on your input and current skincare innovation in Korea.

  • Revisions to texture or scents: Custom formulation includes 1 round of free revision (with more available for a fee).

  • Packaging consultation: Our team helps you choose or source packaging that’s compatible with your product and aligned with your brand identity. Whether you’re looking for frosted glass, airless pumps, or sustainable tubes — we’ve got you covered.

  • Documentation support: Mayk helps guide you through the necessary compliance documentation — including ingredient list review and claims compliance.

Pros of Custom Formulation:

1. Total Creative Control

One of the biggest advantages of custom formulation in skincare is the ability to design your product from the ground up. With OEM skincare manufacturing, you can control every aspect of the formula — from the active ingredients and texture to the scent, color, and packaging. This gives you complete flexibility to align your product with your brand’s identity, target audience, and skincare philosophy.

Whether you're developing a lightweight gel serum for acne-prone skin or a luxurious, antioxidant-rich moisturizer, custom skincare manufacturing in Korea allows you to create a product that’s entirely your own.

2. Unique, Market-Differentiated Formulas

When you go the custom formulation (OEM) route, your skincare formula is exclusive to your brand. Unlike white label or private label skincare, where the same formula may be used by multiple companies, OEM products are unique and not resold to others. This gives you a competitive edge in the beauty industry and helps you build long-term brand value.

If your goal is to stand out with a proprietary formula and grow a loyal customer base, custom skincare production in Korea is the most effective path.

3. Tailored for Specific Skin Concerns

Custom skincare formulation allows you to develop products that address very specific skin concerns. Whether you're targeting dryness, sensitivity, hyperpigmentation, barrier damage, or breakouts, you can choose ingredients and delivery systems tailored to your customer’s needs.

With access to K-beauty innovation and cutting-edge R&D, you can incorporate clinically proven actives, fermented ingredients, or trending botanicals to create high-performance skincare that resonates in both domestic and global markets.

4. Flexible Packaging Options

When you manufacture skincare products through OEM, you also gain more freedom in packaging selection. You can choose custom packaging that matches your brand’s sustainability goals, luxury positioning, or visual identity — from frosted glass bottles to airless pumps and recyclable tubes.

Because the product is developed from scratch, packaging compatibility is factored into the formulation process, allowing for better performance and fewer stability issues.

Cons of Custom Formulation:

1. Higher Initial Investment

One of the most important considerations when developing a custom skincare product is the upfront cost. OEM skincare formulation typically involves:

  • R&D fees for formulation development

  • Sampling and revision costs

  • Clinical or stability testing (optional but recommended)

  • Minimum order quantities (MOQs) starting at 1,000 pieces per SKU

At Mayk, we do things differently. We offer beginner-friendly, flexible OEM packages starting at $199 for 1 product or $249 for 2 products. While not free, these fees are a necessary part of creating a professional-grade skincare product that performs well and complies with safety standards. And here's the key difference: We credit 100% of your R&D fee toward your final production cost if you proceed. This means the amount you paid for formulation isn’t lost — it becomes part of your production investment.


2. Longer Lead Times for Development

Unlike white label or private label skincare, which uses pre-formulated products, custom skincare requires time to develop and test the formula. The full process — from R&D to sampling, revisions, and production — usually takes:

  • 8 to 12 weeks for development (if you have more revisions, it will take more time)

  • 4 to 8 weeks for manufacturing and filling

If you're looking to launch a skincare line quickly, OEM skincare production may not be the best fit unless you're working with an experienced partner and have a clear timeline in place.

To ensure the development kicks off smoothly and on the right note, we always request a benchmark product for your project. This ensures we nail your desired texture before working on the specifics such as adding actives and perfecting the finish. Learn more about benchmark products in our previous blog post here.

Which Process is Suitable for You?

Choosing between private labeling and custom formulation depends on your goals, budget, timeline, and how much control you want over the final product. Both paths can lead to a successful skincare launch — but they serve different types of brands at different stages.

Here’s how to decide which is right for you:

Private Labeling Is Suitable If You:

  • Want to launch quickly with minimal product development time

  • Have a lower initial budget and want to reduce risk

  • Are happy with a pre-formulated product that you can brand as your own

  • Need a starting point to test the market before investing in custom formulation

  • Are okay with limited customization (such as removing fragrance or changing packaging)

At Mayk, our version of private labeling gives you access to high-quality, pre-developed Korean skincare products — with limited flexibility in formula and packaging, and MOQs starting from 1,000 units per SKU. It’s ideal for indie brands, estheticians, or new founders entering the skincare space.

Custom Formulation Is Suitable If You:

  • Want to develop a truly unique product that doesn't already exist on the market

  • Need full creative control over ingredients, texture, scent, and performance

  • Have a specific skin concern or function in mind that existing products don’t address

  • Are building a long-term brand strategy around proprietary formulations

  • Are ready to invest time and budget into research, sampling, and scaling production

  • Want to stand out in a competitive skincare market with your own formula and packaging

With Mayk’s OEM service, we help you bring your product concept to life with custom formulation support, deductible R&D costs, and access to Korea’s top skincare labs. You’ll receive expert guidance from start to finish — from formula development to packaging to global compliance.

Ready to create your own beauty brand?

Browse our catalog for retail-ready formulations that can be tweaked or send us an inquiry for a custom formulation. 

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Private Label vs. Custom Formulation