Learn what third party cosmetic manufacturing in India is, how it works, its benefits, process, cost, licenses, and how to choose the right manufacturer. Complete guide for startups and brands.
What is Third Party Cosmetic Manufacturing in India? (Complete Guide)
Third party cosmetic manufacturing in India has become one of the most popular business models for startups, entrepreneurs, salons, and established brands looking to launch their own skincare, hair care, or cosmetic products without setting up a manufacturing unit.
In this complete guide, we will explain what third party cosmetic manufacturing is, how it works in India, its benefits, required licenses, costs involved, and how to choose the right manufacturing partner for your brand.
What is Third Party Cosmetic Manufacturing?
Third party cosmetic manufacturing is a business model where a company manufactures cosmetic or personal care products on behalf of another brand. The manufacturing company handles product formulation, production, quality control, packaging, and sometimes even label design, while the product is sold under the client’s brand name.
In simple words, you focus on branding and marketing, and the third party manufacturer takes care of the production process.
How Third Party Cosmetic Manufacturing Works in India
The third party manufacturing process in India generally follows these steps:
- Product Selection – You choose the type of cosmetic products you want to launch, such as face creams, shampoos, soaps, serums, or herbal products.
- Formula Finalization – The manufacturer provides standard formulations or develops custom formulations based on your requirements.
- Sampling & Approval – Product samples are prepared and approved by the client.
- Branding & Packaging – Label design, packaging size, and branding details are finalized.
- Manufacturing & Quality Check – Products are manufactured under controlled conditions and quality checks are performed.
- Dispatch & Delivery – Finished products are packed and delivered to the client.
Why Third Party Cosmetic Manufacturing is Popular in India
India is one of the fastest-growing markets for cosmetic and personal care products. Third party manufacturing allows brands to enter this market easily without heavy investment.
Key reasons for its popularity:
- Low startup investment
- No need to set up a factory
- Easy scalability
- Access to expert formulations
- Faster product launch
Benefits of Third Party Cosmetic Manufacturing
1. Low Investment & Risk
Setting up a cosmetic manufacturing unit requires high capital, licenses, machinery, and manpower. Third party manufacturing eliminates these challenges.
2. Focus on Marketing & Brand Building
Since manufacturing is handled by experts, brands can focus on sales, distribution, and marketing.
3. Quality Assurance
Reputed manufacturers follow industry standards and quality control processes to ensure consistent product quality.
4. Wide Product Range
You can easily expand your product line with skincare, hair care, herbal, or cosmetic products without additional infrastructure.
5. Low MOQ Options
Many third party cosmetic manufacturers in India offer low minimum order quantities, making it ideal for startups.
Types of Products Manufactured Under Third Party Cosmetics
- Skincare products (face creams, face wash, serums, lotions)
- Hair care products (shampoo, conditioner, hair oil, hair serum)
- Herbal & ayurvedic cosmetics
- Soap and bathing products
- Pet care cosmetic products
- Personal hygiene products
Licenses Required for Third Party Cosmetic Manufacturing in India
Although the manufacturer handles most compliance requirements, brand owners should be aware of key licenses:
Drug & Cosmetic License (held by manufacturer)
GST Registration
Trademark Registration (for your brand name)
Label Compliance as per CDSCO Guidelines
Cost of Third Party Cosmetic Manufacturing in India
The cost depends on:
- Product type
- Ingredients used
- Packaging material
- Order quantity (MOQ)
- Custom formulation requirements
Generally, third party manufacturing is cost-effective compared to setting up your own unit, especially for small and medium businesses.
How to Choose the Right Third Party Cosmetic Manufacturer
Choosing the right partner is crucial for long-term success.
Things to check:
- Manufacturing experience
- Product quality standards
- Range of products offered
- Low MOQ availability
- Transparency in pricing
- Packaging and design support
- Timely delivery and communication
Always work with a manufacturer that understands your brand vision and business goals.
Why Pine Herbals India is a Trusted Third Party Cosmetic Manufacturer
Pine Herbals India offers reliable third party cosmetic and herbal manufacturing services in India, supporting startups and established brands with:
- Custom and standard formulations
- Skincare, hair care, and herbal products
- Low MOQ options
- Label and packaging design support
- Quality-focused manufacturing processes
- Pan-India delivery
Conclusion
Third party cosmetic manufacturing in India is an ideal solution for entrepreneurs and brands looking to enter the cosmetic market with minimal risk and maximum flexibility. By choosing the right manufacturing partner, you can launch high-quality products, scale your brand efficiently, and stay competitive in a fast-growing industry.
Frequently Asked Questions (FAQs)
Q1. What is third party cosmetic manufacturing?
It is a process where a manufacturer produces cosmetic products on behalf of another brand, which sells them under its own name.
Q2. Is third party cosmetic manufacturing legal in India?
Yes, it is completely legal when done in compliance with Drug & Cosmetic Act guidelines and proper licensing.
Q3. What is the minimum order quantity in third party manufacturing?
MOQ varies by product and manufacturer, but many offer low MOQ options for startups.
Q4. Can I create my own cosmetic formula?
Yes, many manufacturers provide custom formulation services based on your requirements.
Q5. How long does it take to launch a product?
On average, it takes 3–6 weeks depending on product type, approvals, and order quantity.