The new year is the perfect time to seek out new opportunities, with 2025 set to be particularly exciting for private label brands. This sector has been soaring lately, allowing both small businesses and larger retailers to capitalize on the ease and simplicity of the private label manufacturing model.
If you’ve been thinking about launching your own private label brand in the new year or are looking for ways to expand your existing business, keep reading as FLPL explores the most lucrative markets and trends for private label products in 2025.
Prioritizing Environmental Sustainability
Sustainability has been a huge buzzword in recent years. It’s one that has infiltrated just about every industry, and rightly so. With the environment changing at such a rapid rate, consumers have become increasingly aware of how their choices affect the wider world. As a result, they are now choosing to reduce their environmental impact as much as possible.
While traditional brands often need some time to implement any changes, private label brands tend to be much more flexible. It’s usually much easier to make various tweaks when working with a private label manufacturer. This gives private label brands a head start when it comes to achieving sustainability goals.
In addition to attempting to make your products themselves more sustainable, pay attention to packaging too. At FLPL, this is something that we help our clients with. We have a wide variety of packaging materials and components that you can choose from. This makes it a breeze to ensure that every single part of your packaging is as eco-friendly as possible.
Trending Skincare Ingredients
If your private label brand is skincare-focused, it’s definitely worth being aware of which ingredients will be trending in the new year. Sure, you shouldn’t overhaul your entire product line based on trends, many of which can be fickle. However, at the same time, those trends can provide guidance when it comes to any new formulas you create.
So, which ingredients are set to be sought after in the new year?
CBD and other ingredients derived from the cannabis/hemp plant are at the top of the list. Experts predict the CBD skincare market to grow at a rate of 19.5% over the next few years. Why the sudden interest? Because more and more people are becoming aware of the many benefits offered by this ingredient, from its therapeutic effects to its antioxidant properties.
Superfood ingredients have also been taking the skincare world by storm. Superfoods are renowned for their superior antioxidant content, which the skin can directly benefit from when they’re applied topically.
Integrating just one or two trending ingredients into your private label products could really help propel your brand forward in the new year. Work with FLPL and you’ll be able to choose from a vast ingredient catalog. It’s constantly being updated to ensure that our clients have access to the very best ingredients available!
Innovative Beauty Hybrids
Private label products used to be known for their generic nature…but this is no longer the case. Instead, today’s private label brands are all about pushing boundaries. Private label businesses are responsible for some of the most innovative products on the market. This is something that is set to continue in the new year.
One area worth honing in on is beauty hybrids. While 2023 and 2024 saw people clamoring to add as many products to their beauty routines as possible, 2025 will see a turn toward simplicity. As a result, consumers are now looking for multi-tasking hybrid products that perform the role of multiple traditional products.
Tinted SPF moisturizers are one example. With this single product, you could potentially do away with your regular moisturizer, sunscreen, and foundation. This not only saves time and money but also means that the skin isn’t exposed to quite as many ingredients, some of which could be potential irritants.
The Clean Beauty Movement and Ingredient Transparency
The clean beauty movement has been gaining momentum in recent years. It was triggered by people recognizing the sheer number of chemicals and potentially harmful ingredients that are used in beauty products. In an attempt to turn away from this, consumers are leaning toward brands that provide ingredient transparency. This essentially means that the ingredients that have been used in each product are listed clearly, with additional information, such as where and how those ingredients were sourced, also available.
With this, consumers can make educated purchasing decisions. They’ll be fully aware of the ingredients that they’re applying to their skin, with no nasty surprises. This is why consumers are now more likely to opt for brands that provide this detailed information.
A Focus on E-Commerce
Online shopping is now more popular than ever, and this isn’t going to change in the new year. Instead, e-commerce is set to become an even bigger player. This means that your private label brand needs to get in on this as soon as possible!
Start by making sure that your website is well-designed and user-friendly. It should provide a seamless shopping experience, making it as convenient as possible for someone to make a purchase.
Make the most of social media too. Many platforms allow brands to sell their products directly through them. Known as social commerce, this is becoming just as crucial for many brands as regular e-commerce, particularly for those in the beauty sector.
If e-commerce/social commerce are new frontiers for your brand, it can be very beneficial to work with a private label manufacturer that can help with this. At FLPL, we have an experienced team that will help you to set up your own e-commerce store. We can assist you in creating a social commerce platform too, if desired. We can also help you to run and manage these so that you can focus on other aspects of your business.
The Skin-Mind Connection
Have you heard of psychodermatology? It’s an emerging field that explores the connection between the skin and the mind. A person’s mental health can have a huge impact on their skin and vice versa. Psychodermatology is bringing this into the spotlight, to the point where you can expect to hear much more about it in the new year.
For those who have been struggling to overcome skin concerns with traditional products and techniques, psychodermatology is a breath of fresh air. It provides new avenues for dealing with skin problems while also focusing on mental health.
This has led to a rising demand for neurocosmetics. These are cosmetic products that incorporate sensory considerations. From texture to aroma to appearance, neurocosmetics not only benefit the skin but they also elicit certain emotions that boost mental health.
Diversity and Inclusivity
In today’s world, diversity and inclusivity are being increasingly prioritized. It’s no longer acceptable for brands to exclude certain demographics. Instead, consumers are favoring brands that encompass diversity in their products, creating formulas that appeal to all skin types, skin tones, and genders.
If your own private label brand could do with being more inclusive, start by assessing your product line. Consider how you can expand on this to offer a more diverse range of products. Whether this means adjusting your existing formulations or adding more products to your line, it’s a move that will be appreciated by many.
Your marketing campaigns should also be showcasing diversity. Think outside of the box so that you can establish an inclusive brand identity, which will ultimately have a much wider appeal.
Sophisticated Simplicity
Are you currently using flash colors and extravagant packaging in an attempt to entice consumers to choose your products? While this may have worked in 2024, the new year will be bringing with it a move toward sophisticated simplicity.
What does this mean? It involves stripping away the excess and focusing on what your products can actually do. Consumers don’t want to feel overwhelmed and confused when shopping. They’re now seeking functional, high-quality products that do what they say they will rather than making multiple promises that can’t be delivered.
Beauty Meets Technology
While some brands may have spent the last few years desperately trying to ignore the rising influence of technology, this will become impossible to do in the new year. Tech is now involved I just about every aspect of the beauty industry. If your private label brand doesn’t embrace this, you’ll soon fall behind.
Fortunately, there are so many options to explore when it comes to bringing tech into your business. Some of the most popular routes include:
- Using augmented reality to give consumers the option to digitally ‘try’ your products.
- AI can be used to provide personalized product recommendations to customers.
- AI is also increasingly being used as an effective skincare analysis tool.
- Virtual makeup filters, such as those found on some social media platforms, are nothing new. However, now that brands are getting involved, they’ll become much more intricate.
- Virtual consultations and beauty advisors can provide a much more personalized shopping experience.
The Search for Customization
Once your brand starts to embrace technology more, you’ll notice that this can be extremely advantageous in terms of providing a more customized experience to your customers. This is something that will be huge in the new year, with people now expecting so much more.
Generic products will be cast aside in favor of those that enable people to fully tailor their beauty routines to their skin’s needs. Although the technology that allows for this has been expensive in the past, it is now becoming much more accessible. This enables even new and small businesses to jump on board.
Embracing Exciting Private Label Opportunities in the New Year
Private label brands are continuing to experience success after success, and this is something that will hold strong in the new year, so long as you remain open to the many opportunities that surround you. Private label manufacturing provides so many advantages, making it relatively easy to aim for a number of the trends that are emerging across the sector. Team up with a reputable and experienced private label manufacturer, like FLPL, and 2025 will be a fantastic year for your business!
Click here to find out more about the private label manufacturing services offered by FLPL.
