Setting Up a Business in the Cosmetics Industry – What Do You Need to Know?

by Chatter DC News

The cosmetics industry is one of the most profitable industries in the world. In 2018, the industry was worth an astonishing $11.8 billion, and this figure is set to double in the next four years due to growing demand and new start-ups entering the industry.

With this in mind, entrepreneurs are looking to start up their own business in the cosmetics industry to reap success in such a competitive market. New, innovative products are constantly being introduced on a regular basis. Therefore, it’s essential to stay ahead of trends and do your research beforehand.

In this guide, we’re going to look at some of the critical factors for consideration when starting out in the cosmetics industry to help you achieve success and limit complications.

Be aware of the FDA regulations

A crucial starter is to become familiar with the USA’s FDA regulations relating to the cosmetic industry, which focuses on aspects such as manufacture and packaging for the health and wellbeing of consumers.

The FDA controls the products which are legally allowed to be sold by carrying out a thorough investigation to guarantee their safety, performance, and capabilities. By checking these guidelines, you may also become aware of illegal ingredients that cannot be used in the creation of products and prevent facing lawsuits if the product does not meet the basic regulations.

Understand your legal responsibilities

While the relevant qualifications may stand you in good stead for setting up a cosmetics business, it doesn’t mean you are entitled to set up your business without following the legal procedures. The relevant insurances and licenses are required to manufacture and sell products and should be applied for and confirmed before the set-up of the business.

Choose a business premises

If you’re planning on creating and selling your cosmetics on a small scale, you may decide that working from home is the more feasible option at the current time. However, if you plan on expanding your business on a large scale from the get-go, it may be worth hiring a warehouse for the manufacture and storage of products, as well as housing the relevant equipment to get your business up and running. Contract spray drying, for example, will turn liquids into a dried solution to create powders, while production line machinery mixes solutions and packages the products.


Before you’re legally allowed to sell your products on the market, you’ll need to carry out testing. This ensures the safety of the product, which is your responsibility before it hits the shelves. If the cosmetic does not meet the legal requirements, the FDA can prosecute or even sue your company.

When carrying out testing, you’ll also need to decide as to whether or not to test on animals, which is an act that is typically carried out to prove the safety of the product. However, you may lose a substantial number of customers through this procedure, with many consumers businesses now taking a vegan approach and testing through other practices.

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