Bringing a new beauty product to life is an exciting journey — but it’s also full of moving parts, tight timelines, and often, surprise expenses. For founders and brand owners, these hidden costs of product development in the beauty space can quickly add up, stretching budgets and delaying launches.
At MSM Beauty Solutions, we’ve helped countless brands navigate product development and project management, and one thing we always emphasize is planning for the unexpected. Below, we’ll walk through five common hidden costs and how to budget for them so your launch stays on track.
- Extra Rounds of Testing and Compliance
Regulatory and safety testing is non-negotiable in the beauty industry. But many founders underestimate:
- Stability testing to ensure your formula holds up over time
- Compatibility testing between formula and packaging
- Microbiology and PET testing
- Country-specific compliance (EU, Health Canada, FDA labeling requirements, etc.)
These tests may require multiple rounds if a formula fails or packaging interactions cause issues. Costs can climb into the thousands, and they also add weeks to your timeline.
Pro Tip: Always build testing into your initial project budget and allow for an extra round “just in case.”
- Packaging Delays and Minimum Order Quantities (MOQs)
Packaging is one of the most underestimated line items. Hidden costs often include:
- Tooling or mold fees for custom components
- Unexpected MOQs (you may need to buy 10,000 units when you only need 5,000)
- Air freight vs. ocean freight if a timeline slips
- Last-minute substitutions if your packaging is discontinued or out of stock
Pro Tip: Get clear quotes up front, ask about tooling, and confirm lead times with suppliers. Work with a project manager who can help you source alternatives if things change.
- Ingredient Sourcing and Reformulation
Global supply chain fluctuations mean raw material pricing is rarely static. If your hero ingredient spikes in cost or becomes unavailable, you may face:
- Reformulation costs (lab fees, extra sample rounds)
- Rush fees to secure limited ingredients
- Unexpected shipping/duties if sourcing internationally
Pro Tip: Build a buffer into your budget and timeline for reformulation, and always identify backup ingredients during the R&D phase.
- Branding, Labeling, and Copy Revisions
It’s easy to budget for design — but what about revisions? Common hidden costs include:
- Multiple rounds of label copy revisions to meet regulatory requirements
- Reprints if ingredients, claims, or artwork change after proofs are approved
- Barcode/UPC setup or certifications like cruelty-free or vegan logos
Pro Tip: Align your creative team, regulatory expert, and project manager early in the process to minimize costly do-overs.
- Logistics, Storage, and Inventory Management
Once your product is manufactured, costs don’t stop. Hidden costs here include:
- Storage fees if your 3PL or manufacturer holds inventory longer than planned
- Pick & pack fees for fulfillment
- Freight surcharges if pallets exceed weight or dimension expectations
- Returns processing for damaged or defective units
Pro Tip: Factor logistics into your financial model from the start. Ask partners for detailed breakdowns of warehousing, shipping, and fulfillment costs.
The takeaway? Product development is complex, and hidden costs are the rule, not the exception. Brands that plan ahead — with accurate budgets, realistic timelines, and expert guidance — launch more smoothly and protect their bottom line.
At MSM Beauty Solutions, we specialize in new product development and project management for beauty, skincare, and personal care brands. From concept through launch, we help clients anticipate roadblocks, manage budgets, and avoid costly mistakes.
Ready to Map Out Your Product Development Journey?
If you’re building your next beauty product and want a partner who knows the ins and outs of development costs, let’s connect. Reach out today to start a conversation about how we can support your launch.
