Hair products can either help us improve the quality or appearance of our hair or worsen the problem. Every company wants their products to be helpful, but to make it happen; you need to focus on the process of contract manufacturing hair care products. You really need to be careful regarding the companies you work with. Scroll down to learn more about this subject and how to achieve the best possible outcome – high-quality product made at a reasonable price.
Value of hair care market
The hair care market is big, but how big it is? Numbers reveal (1) in a period between 2021 and 2028, the value of the hair care market is going to increase at an annual rate of 5.6%. In 2028, the hair care market is going to be worth around $112.97 billion. That’s a staggering number, don’t you think? Also, in 2020, the worth of the hair care market was around $75.06 billion.
Factors behind the consistent market growth are numerous, including the increasing prevalence of hair loss in men and several hair-related problems. The driving force behind the hair care market growth is product innovation, too. As companies work on new solutions and better results, demand for their product line increases.
What is contract manufacturing?
Let’s start with the basics first, shall we?
Contract manufacturing is defined as a situation wherein a contract manufacturer is in agreement with another business to make certain products within a specific timeframe. In this case, the company performs the manufacturing and other processes of hair care products. Many companies also cover other products such as skin care products, bath care products, body care, cleaning products, and more.
Why is a contract manufacturer necessary?
In the cosmetic industry (2), contract manufacturing is pivotal, and the hair care industry is not the exception. Third-party manufacturers, contract manufacturers, or private labels, call them whatever you want, but the fact is they join the link between the supply chain and the finished product. They also stand between product variation and trends on the market.
Deciding to dip your toes in contract manufacturing waters is important for overall business growth. It expands your operations and helps you focus on other tasks such as marketing. That being said, choosing a contract manufacturer is not something you should take lightly. The main objective here is to build a long-lasting relationship with a private label manufacturer that will deliver products on time and within budget.
In other words, contract manufacturing is necessary because it can help you reduce costs, do more, and make your business more competitive. Your contract manufacturer can perform various tasks ranging from formula design to packaging design and creation, manufacturing, printing, and in some cases, distribution. The exact services usually depend on your needs.
Always bear in mind the right private label hair care company will work with you closely and ensure you are completely satisfied with the final product.
Disadvantages of in-house manufacturing
While it’s natural to assume you can just focus on in-house manufacturing, but this move has significant disadvantages. They are:
- Sales are necessary to make it happen, which is particularly inconvenient if your company is new to the market
- Inventory complications, especially in states with more complex rules
- Costs of manufacturing can be very high this way
- Requires a lot of human resources that your label may not be ready to hire
- Requires a large space and adherence to strict manufacturing processes and standards, which could lead to hefty fines if you fail to meet those criteria
What we can see here is that in-house manufacturing is a lot more complicated than we believe. This kind of manufacturing requires a lot of sales, finances, and a great deal of workforce. For many hair care manufacturers, this doesn’t really pay off.
Advantages of contract manufacturing hair care products
Contract manufacturing opens new possibilities and opportunities to succeed in this industry. Below, you can see some of the most significant advantages of private labeling your products:
- You don’t need sales and huge financial capital to start making your products
- Professionals design and redesign products for manufacturing
- You don’t have to worry about packing and labeling products
- No inventory complications
- Reduces costs
- Higher-quality products
- Resource savings
- Decreased labor
- Faster time to market
- Industry-specific solutions
- Accurate deadlines and cost estimates
Contract manufacturing of hair care products allows brands to hand over production to trained professionals and focus on other projects that are equally important. You also don’t have to hire too many employees or team members, which is yet another way to save up on financial resources.
What kind of contract manufacturer is the best?
So let’s say you decide to hire a contract manufacturer. Deciding so is easy, but finding the ideal company is not such an easy task. The best way to simplify the process is to understand what kind of contract manufacturer is ideal. That company should have the following characteristics:
- Good reputation because a private label that others deem unreliable is highly unlikely to give you the quality of products you expect
- Advanced equipment and lab to handle a wide range of requests in custom hair care; this is an ever-changing industry – it keeps developing, expanding, and a good private label does the same
- Full-service solutions so you don't have to pay other private labels to do certain tasks, which would increase your costs when your goal here is to decrease them.
- Manufacturing capabilities to produce a large number of products within a small time frame in order to keep up with the market demands
- All necessary certifications such as organic certification, FDA certification, GMP certification, and ISO:9001 certification, all of which confirm the products are made in a safe and sterile environment. This adds to the quality and safety of the products.
- Innovative product development for better, more productive solutions of subsequent hair care lines
- High-volume filling to handle large quantities of work
- Specialized packaging options when necessary
- Numerous stock products are available
One of the most reliable contract manufacturers in the hair care industry, but also in the beauty industry in general, is KBL Cosmetics. This company provides full-service solutions that range from product development to applying labels, depending on the needs of your hair care lines. A wide range of tubes, bottles, jars, and other containers are available to store the products. It's also useful to mention the containers are visually appealing, which plays an important role in the perception and acceptance of personal care products by the public. The minimum quantity is 5000 pieces, but a good thing to know is that KBL Cosmetics can handle large volumes easily.
Finding the right hair care contract manufacturer is a great way for hair product brands to increase productivity while reducing overall costs by allowing others to develop and manufacture their hair care lines and more. This kind of manufacturing is an important segment of the cosmetic and hair care industries. Just make sure to choose a reliable manufacturer with FDA registered laboratory that will only enhance the quality of your products.