For years, the narrative around the beauty business has been one of reach: It’s never been easier to start a brand. Social media has lowered the barrier to entry, direct-to-consumer distribution has become easier and a strong idea or the right mention of TikTok can turn one product into a viral hit. But measuring the beauty mark is a different matter.
“It’s never been easier to launch a beauty brand, but at the same time it’s never been harder to grow it,” said Will Henderson, founder of Skincare Generics. Turning attention into a scalable business, he adds, requires operational and financial infrastructure that many start-up companies simply don’t have.
Across skin care, fragrance and cosmetics, innovators are navigating a new reality defined by rising costs, tight supply chains, tight sales expectations and a widening gap between independent brands and well-funded competitors. Growth is still possible, but now it requires much more than a strong product. It requires money, discipline and a clear strategy of what should not be compromised.
The Cost of Being Too Much
At the heart of the change is a simple but important pressure: Everything costs more. Materials, packaging, shipping and testing have all increased, forcing emerging companies to make difficult decisions earlier in their life cycles.
“Growing up now means facing both intense competition and high consumer expectations,” said Iulia Sczortova, founder of the cosmetics brand Serotonin Beauty. “There’s more pressure to get everything right from scratch, from product to packaging to distribution.”
Image: Courtesy of Serotonin Beauty
Those rising costs ripple across the business. “Costs have increased at every level—materials, packaging, shipping and testing,” says Arielle Moody, founder of the sun care brand Mama Sol. Without scale, emerging brands absorb that increase, tightening margins and reducing the ability to reinvest in growth.
For new founders, that pressure is immediate. “You can have the biggest product in the world, but if you can’t meet the parameters expected by the seller or invest in visibility, scaling becomes a big challenge,” said Dr. Whitney Hovenic, founder of sun-care brand Spooge.
Even older founders are making adjustments. Dimitri Weber, founder of perfume house Goldfield & Banks, says rising costs are forcing companies to renegotiate with suppliers and, in some cases, absorb the increase rather than pass it on to consumers.
Image: Hosted by Spooge
MOQ problem
Small quantities of manufacturer orders are another problem.
“You’re usually required to commit to a very large quantity from the start, sometimes 10,000 units per SKU before you’re sure you need it,” says Luisa Slavila, founder of skincare label Off We Glow.
For inventors, that requirement turns product development into a financial risk. “If a manufacturer tells you the minimum order is 5,000 or 10,000 units, that’s not just a production requirement. That’s a cash flow commitment, a storage challenge and a risk calculation all at the same time,” Henderson said.
Rising MOQs are “one of the biggest obstacles right now,” Moody added. “It’s no longer about product-market fit, it’s about whether you can play at that level.”
Brazil Edition founder Rogerio Cavalcante says those constraints have forced a disciplined approach: Products are introduced in a tight variety and grow more deliberately, rather than growing too quickly. Together, these limitations force innovators to make big bets early, often without data or margin to absorb mistakes.
Image: Courtesy of Brazil Edition
Access, or Lack of it
Apart from the cost, access to the right partners has also become more difficult. As more manufacturers consolidate or prioritize larger clients, smaller brands are often pushed to the margins.
“As labs and contract manufacturers become more companies or PE-owned and risk-free, they are less likely to adopt new products,” said Charlene Valledor, founder of brand incubator SOS Beauty.
Even when access is there, it comes at a cost. “If you want access to labs with real knowledge, experience and a proven track record, you’re definitely going to pay a premium,” Henderson notes.
For founders, that dynamic changes the way relationships are built. “Brands are working more closely with labs,” says Isha Simaga, founder of perfume brand Siru, pointing to a shift to long-term relationships rather than production.
At the same time, alignment has become as important as access. Aziza El Wanni, founder of The Potion Studio, says founders are very intentional about who they work with, focusing on shared standards and a long-term vision rather than speed.
Related: Indie Beauty Founders Get Real About the Challenges They Face
Marketing Is No Longer a Shortcut
Sales were once considered the main driver of the ratio. Today, it’s something brands should be ready for before they enter.
“Partnering with a retailer has become more of a marketing strategy than a true scale engine,” says Cosmette Skincare founder Tara Fankhanel. And the retail game is not easy. “Sellers expect a lot more up front now,” Moody said. “It’s not just about having a good product – you need a strong brand, proven sales, marketing support and the ability to keep shelves full.”
Image: Courtesy of Cosmette Skincare
For Reshona Jessamy, founder of Novara Beauty, that has changed the way she approaches expansion. “Growth, for us, is not about being everywhere, it’s about being in the right place,” he said.
Even the founders who are preparing to enter the shops are treading carefully. Simaga says expansion is the long-term goal of his fledgling perfume brand, but only as long as the infrastructure is in place to support it without compromising the brand’s integrity.
The Global Pressure Layer
Tariffs and variable trade policies have added another layer of complexity to the equation, especially for brands that operate in multiple markets.
Lisa Hanna, founder and CEO of her namesake skin-care brand, says the industry is undergoing a “fundamental overhaul” in how brands approach expansion. “Every decision – where you make it, how you deliver the product, what you prioritize – is now directly linked to the ever-evolving policy areas,” he explains.
For founders, that means building resilience rather than speed. Jessamy says pricing has forced Novara Beauty to make deliberate pricing decisions while protecting product quality. At The Potion Studio, El Wanni takes a similar approach, focusing on long-term revenue strategies rather than reacting to short-term cost fluctuations.
Related: Why Mid-Priced Beauty Brands Are Feeling Crowded
The Expanding Gap
Taken together, these pressures widen the gap between independent and group-built products with significant funding. “Well-funded brands can launch faster, be more productive and invest more in marketing,” says Moody. Independent brands, in contrast, are forced to be more selective and tend to grow more slowly.
The difference is evident in everything from inventory depth to store presence. “If two brands are equally strong in the market, the one with deeper pockets can place larger orders for inventory, weather purchasing problems and attract top talent,” Henderson said.
At the same time, consumer demand for independent products continues to grow. “Consumers want authenticity, transparency and a clear vision,” Fankhanel said. But demand alone does not guarantee quality.
Related: Is Private Equity’s Involvement in a Depriving Brand of Excellence?
A Future Intended for Another
Finally, the current environment is forcing a change in the way growth is defined. Instead of chasing rapid expansion and rapid exit, many founders focus on stability, discipline and long-term product development.
Growing a beauty brand today isn’t just about having a great idea, it’s about navigating an increasingly expensive, complex and highly competitive system at every level. The barrier to entry may be low, but the barrier to growth has never been higher. In a sector built on innovation and access, growth is no longer just about having an idea, it’s about having the resources to support it.