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August 19, 2025

What Are The Actual Costs Of Starting A Beauty Brand?


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Every week we talk to founders who are excited, inspired, and ready to take their idea to market. And every week, we find ourselves explaining the same thing: building a beauty product isn’t cheap, quick, or linear. Timelines depend on material lead times, shipping, package production, testing timelines — there are lots of moving parts and no one can supply you with a smooth map from beginning to end.

Here’s what it really takes, stage by stage.Everyone loves the idea of creating a beauty product. It’s glamorous, creative, and potentially life-changing. But the reality is that building a cosmetic line isn’t just about inspiration — it’s about planning, patience, and understanding the true costs at every stage.

Timelines depend on material lead times, shipping, package production, and testing timelines. There are lots of moving parts, and no one can supply you with a perfectly smooth map from beginning to end. Product development in cosmetics is complex, expensive, and time-consuming, but with the right partners it’s also achievable.

Below is a breakdown of what goes into creating a market-ready cosmetic product and the costs founders should anticipate.

Stage 1: Discovery and Early Formulation

We get calls and meetings every day that we try to screen for founders ready to go. The reality is, people with just a thought or idea of creating a brand fill a lot of the day, and we try to spend time educating them a bit.

  • Formulation R&D: $5,000–$15,000 per product on average.
  • Initial prototypes: included in R&D, with 1–2 rounds of revisions. Beyond that, lab time may be charged ($385/hr, minimum 3 hours, plus materials).

Stage 2: Testing and Compliance Basics

Expect higher R&D costs and longer lead times for more complex or regulatory heavy products. Testing and compliance aren’t optional. They’re what gets your product into the market safely and legally. Many retailers may ask for proof. So be prepared.

  • Basic stability testing: $2,000–$5,000. (APL includes this with your formulations cost – but you should ask if you are elsewhere. It is not usually covered.)
  • Preservative efficacy/micro testing: $2,500–$5,000. (again – APL always does basic microbial testing, but if you have a stand alone formulator they may not have the equipment.)
  • Third-party specialized tests (if required): $5,000–$20,000+. (we try to advise as early as possible if these will be necessary.)

Stage 3: Packaging Considerations

Packaging choices should be made earlier rather than later. Packaging is another world on its own and difficult to navigate without professional help. Your final formula must be tested in the packaging you will retail with.

  • Component sourcing: $3,000–$10,000+ depending on complexity. (APL will assist you with our network and recommendations during your formulation process.)
  • Package testing (compatibility, drop, dispersion, usability): $1,500–$5,000. (APL will assist you with this as well during your formulation development, but make sure you ask your formulator or CM when you are in the formulation phase.)

Stage 4: Intellectual Property and Formula Ownership

One of the most important points: formulation ownership. Many formulators or manufacturers will keep and hold the IP of the formula you just paid for, forcing you into repeat manufacturing contracts or a larger pay out as you hit your stride in sales. Always get ownership in writing from the beginning. Atomic Pom Labs always releases the IP of your formulation in writing before we even start work. We provide all necessary documents to repeat the formulation anywhere.

  • Formula transfer/IP assignment: often included in higher-end lab contracts, but worth $5,000+ in value long term. Check if you need to pay extra.

Stage 5: Intermediate to Advanced Development

Intermediate products (like OTC, NHP or sunscreens) often require longer R&D timelines and more complex sourcing.

  • Material sourcing & in house testing and adjustments: $2,000–$6,000+.
  • Advanced third-party testing (safety & claims): $5,000–$25,000+.

On average, these products take 12–24 months to move from concept to compliance.

Think claims like ‘acne’, or ‘eczema’.

Stage 6: Production and Scale-Up

If you’ve found a contract manufacturer that will take you and produce your required volumes (their MOQ), scale-up begins. This involves pilot batches, line trials, packaging compatibility, and sometimes reformulation to “make it work.”

Atomic Pom Labs uniquely offers marketing runs of 500 units for formulation clients. This is rare in the industry and designed to help indie founders with investor meetings, photoshoots, and influencer/PR gifting.

  • Pilot batches & line trials: $3,000–$10,000.
  • Initial production runs: $20,000–$100,000+ depending on MOQ and product type.

Stage 7: Regulatory and Compliance by Region

Depending on the product and region, regulatory filing can be straightforward — or painfully slow. Some markets require a PIF (Product Information File) and a designated Responsible Person, both of which carry fees. Atomic Pom Labs will handle your Canadian notification for you once your formulation is approved. We also have a regulatory department that can handle all other regulatory bodies (extra fee.)

  • Regulatory filings & compliance documentation: $1,000–$10,000+.
  • Responsible Person fees (EU/UK): $2,000–$5,000/year.

Stage 8: Branding, Marketing, and Visibility

With all of this going on, you still need strong branding. Product, packaging, copy, and marketing have to work together. Ad standards apply to your website, packaging, and advertising — so creative must be legally sound as well as compelling. It is important to not only understand the regulatory landscape, but also sales placement. What looks good on a screen might look unappealing on a shelf. APL has a bundle that includes an integrative working between our lab and our creatives.

  • Branding and creative development: $10,000–$50,000+.
  • Digital marketing & SEO setup: $5,000–$15,000.
  • PR and influencer gifting campaigns: $2,000–$20,000+.

Having a branding expert in the beauty space is essential. If you’re lucky, your lab and creative team work together seamlessly (think Annie and Diego).

The Bottom Line

Working with a lab + manufacturer + branding agency like Atomic Pom Labs can save you both cost and, more importantly, time. But be prepared: bringing your dream to life requires a real investment and full commitment.