Step-by-Step Guide to Launching a Private Label Lip Balm That Sells in 2025

Why Private Label Lip Balm is Your 2025 Brand Launchpad (+Trend Data)

In recent years, lip balm has transitioned from a simple product to a staple in everyday beauty routines, especially among younger demographics seeking natural and multifunctional products. As we approach 2025, market insights reveal that the global lip balm market is projected to reach over $3.2 billion, with a compound annual growth rate (CAGR) of approximately 5.2% (Source: MarketWatch). This sustained growth is fueled by rising consumer preference for vegan, cruelty-free, and eco-friendly options, along with the desire for products that combine skincare with style.

For aspiring entrepreneurs, entering this space through private label lip balms offers a lucrative opportunity. Unlike developing a product from scratch, private labeling allows you to leverage existing formulations and manufacturing infrastructure, drastically reducing upfront costs and development time. Additionally, with the right branding, packaging, and formulation decisions, your private label lip balm can become a household name in niche markets or standard retail channels.

Key market trends in 2024-2025 include:

• Growth of tinted and SPF-infused balms: Tinted balms provide a quick, natural color boost, while SPF ingredients meet the increasing consumer demand for sun protection in everyday products—growth up 33% in 2024 alone (Source: MarketWatch).
• Sustainable and minimal packaging: Eco-friendly packaging options such as biodegradable tubes or sugarcane bioplastics are trending, aligning with consumers’ eco-conscious values.
• Vegan formulations: Vegan, cruelty-free, and allergen-free balms are gaining popularity, making plant-based ingredients a focus for new product lines.

By understanding these trends, entrepreneurs can create a product line that resonates with modern consumers, giving their private label lip balm a competitive edge.

Step 1: Formulation Foundations - What Beginners MUST Know

Developing a winning lip balm begins with a strong formula. For beginners, simplicity is key—aim for formulations that are nourishing, non-sticky, and visually appealing. The formula should align with your target audience, whether they prefer natural textures, vibrant tints, or SPF protection.

Starting point: Use high-quality, food-grade ingredients that are skin-safe and easy to formulate with. Common base ingredients include natural butters (shea, cocoa), carrier oils (coconut, jojoba), waxes (beeswax or plant-based), and active ingredients like zinc oxide for SPF.

Here’s a step-by-step guide for formulation:

• Select your base: Shea butter and beeswax provide a solid foundation for a classic balm, offering nourishment and structure.
• Add emollients: Oils like jojoba and almond add extra hydration. Using cost-effective oils in bulk can save money, especially at MOQ of 500 units or more.
• Incorporate active ingredients: Vitamin E acts as a natural preservative and skin conditioner. For SPF balms, zinc oxide is the most common mineral filter.
• Flavoring and coloring: Use natural flavor oils (peppermint, vanilla) and safe colorants—start with mineral or plant-based pigments for a clean label.
• Testing and stability: **Never skip stability testing!** Your formula should withstand temperature fluctuations and maintain texture over time. This prevents product separation, melting, or scent changes.

For cost-effective manufacturing, starting with minimal ingredients simplifies sourcing and reduces expenses. Once your base formula is perfected, you can iterate to include tinted versions or SPF variants.

Step 2: Packaging That Sells - Budget to Luxury Options

Packaging is arguably just as important as formulation when it comes to sales. It communicates your brand’s identity and influences purchasing decisions—especially in a crowded marketplace. Fortunately, there’s a wide range of packaging options suitable for all budgets and brand aesthetics.

Consider the following factors:

• Type of container: Tubes, sticks, or jars? For balms, twist-up sticks are popular for convenience and hygiene. Jars are often used for balms that are more thicker or for gifting sets.
• Materials: Aluminum, plastic, or biodegradable options like sugarcane bioplastics are available. Aluminum tubes give a premium feel but cost more (~$0.80+ per unit), while plastic is more budget-friendly (~$0.50 per unit).
• Design and branding: Custom printing or labels can transform standard containers into branded packaging. Keep in mind MOQs—custom packaging often requires at least 1,000 units.
• Eco-conscious choices: Recyclable or biodegradable options appeal to eco-minded consumers and can command higher price points.

Next, plan your packaging budget. Starting with stock containers can reduce costs initially, then upgrade to custom designs as your sales grow. Working closely with packaging manufacturers for samples and lead times ensures smooth development.

Step 3: Color Selection Science - From Pantone to Profit

Color plays a pivotal role in product appeal and branding. For lip balms, shades tend to be subtle and natural, complementing the product’s nourishing essence. In 2025, you’ll see a preference for soft pinks, warm nudes, and clear or lightly tinted balms.

Here's how to choose shades wisely:

• Start with five core shades: Transparent, sheer pink, natural nude, berry, and coral tones cover most consumer preferences and seasonal demands.
• Use Pantone color codes: For example, Pantone 13-1520 (Pink Lavender) or 16-1546 (Living Coral), which are trendy and widely recognized in cosmetics.
• Test color stability: To prevent bleeding or fading, work with manufacturers that have pigment dispersion expertise.
• Align with branding: Consistent colors across your product line help build brand recognition and loyalty.

Coloring can be added via mineral or plant-based pigments, which are safe and compliant with cosmetic regulations—an essential consideration when marketing to eco-conscious or vegan consumers.

Step 4: Cost Control Tactics - Manufacturing Insider Tips

Managing costs effectively is vital for profitability. Many new brands underestimate the expenses involved, leading to margin squeeze or unanticipated expenses. Here’s how to stay in control:

• Bulk ingredient sourcing: Buy base oils, waxes, and pigments in large quantities. Suppliers often offer discounts at MOQs of 500 or 1,000 units.
• Standardize packaging: Use stock containers initially, then transition to custom packaging once sales volume justifies the investment.
• Negotiate with manufacturers: Ask for fixed pricing, and inquire about included services like stability testing, labeling, and certifications.
• Factor in all costs: Include certifications (organic, vegan), testing, labeling, shipping, and customs fees. These can add 10-15% to your initial budget.
• Consider minimum order quantities (MOQs): Smaller MOQs (as low as 500 units) are available but may come with higher unit costs. Balance your inventory needs with your cash flow.

To maximize your investment, plan your product launch around production lead times and shipping windows, avoiding rushed orders.

Manufacturer's Corner: How We Make Lip Balm Development Painless

Partnering with an experienced cosmetic manufacturer unlocks a smoother launch process. Our team specializes in private label products tailored for startups like yours, ensuring high-quality formulations, flexible MOQs, and strategic packaging options.

Here's what we offer:

• Custom formulations: We develop formulas aligned with your brand positioning—whether natural, tinted, or SPF-enhanced.
• Packaging solutions: From eco-friendly tins to sleek tubes, we supply options that fit your budget and aesthetic goals.
• Regulatory compliance: Our experts handle ingredient safety data sheets, labeling, and certifications—saving you time and preventing legal issues.
• Lead time transparency: Typical lead times range from 4-8 weeks, depending on complexity and order size, allowing you to plan your marketing schedule accordingly.
• Ongoing support: We offer scalable services, including testing, quality control, and marketing advice, to help your product stand out.

Building your dream private label lip balm is easier with an experienced partner—reach out today and let us help transform your ideas into a market-ready product.

Ready to formulate? Request our lip balm starter kit and start building your private label brand today!