Is finding a cosmetic factory like a “blind box lottery”? After the implementation of new regulations in 2025, choosing the wrong factory may not only lead to formula leakage and substandard batches, but also result in penalties due to non-compliance. Data shows that 72% of emerging beauty brands have delayed their market launch due to incorrect OEM factory selection. Combining 10 years of experience in the OEM industry and the latest policies, this article breaks down the core logic of selection, attaches quality inspection checklists and compliance tools, and helps you avoid 90% of potential pitfalls.
I. Must-Know New Regulations for Cosmetic Factories in 2025 (Evidence Support)
- Mandatory Upgrade of Safety Assessments
Since May 1, 2025, all registered and filed products must submit a complete safety assessment report; only 3 categories of special products can be archived for future reference. A factory in Guangzhou failed to report the toxicological data of raw materials, resulting in 3 million yuan worth of products remaining unsold.
✅ Pitfall Avoidance: Require the factory to provide a cooperation agreement with a third-party testing institution, and verify the consistency between the “raw material traceability code” in the report and Certificate of Analysis (COA) documents.
- Tax Red Line for Live-Streaming Promotion Costs
Starting from October 1, the maximum pre-tax deduction limit for live-streaming promotion costs of cosmetic enterprises is 30% of revenue (far higher than 15% for other industries). This means that if a factory relies excessively on advertising, it may hide the risk of cost transfer.
✅ Pitfall Avoidance: Clearly state in the contract that “live-streaming promotion costs are not included in processing fees” and require the factory to provide tax returns for the past 6 months.
II. 5 Steps to Select Compliant Cosmetic Factories (Practical Experience)
Step 1: In-Depth Qualification Verification (Eliminate Qualification Affiliation Traps)
- Core Certificates: Search for the Cosmetic Production License on the official website of the National Medical Products Administration (NMPA), focusing on whether the “licensed items” cover your product category (e.g., makeup requires a separate license).
- Hidden Risks: Be alert to “shared qualifications” — a small factory in Hangzhou used the qualification of a large factory, and the brand party was penalized with the confiscation of 2 million yuan after the violation was discovered.
- Tool: NMPA’s “Domestic Cosmetic Production License Information Management System
Step 2: R&D Capability Verification (Reject Formula Plagiarism)
- Hard Indicators: The laboratory must be equipped with vacuum emulsification pots, heavy metal detectors, and other equipment; engineers should account for ≥30% of the R&D team.
- Practical Test: Propose a demand for “preservative-free moisturizing formulas” and observe whether the factory can provide a stability plan within 72 hours (substandard factories often refuse by saying “it’s too difficult”).
- Case: Shandong Freda invests 8% of its revenue in R&D, so the return rate of its OEM products is 40% lower than the industry average.
Step 3: Unannounced Inspection of Production Workshops (Focus on 3 Key Points)
- Cleanliness: Workshops for cream products must meet the Class 100,000 cleanliness standard, with no standing water on the ground and employees wearing double-layer gloves.
- Equipment Condition: The error of the automatic filling line should be ≤ ±0.1g (the error of old equipment often exceeds ±0.5g).
- Warehousing: Raw materials should be stored in separate areas; active ingredients such as vitamin C need refrigeration (a factory once caused raw material failure due to room temperature storage and compensated 30% of the product value).
Step 4: Quality Inspection System Analysis (ISO 22716 is the Baseline)
- Must-Check Documents: Incoming raw material inspection records (including pesticide residue and microbial testing items) and triple inspection reports for finished products before delivery.
- Traceability Capability: Each batch of products must have a unique traceability code, allowing inquiries about raw material sources, production staff, and testing data.
- Safeguard Clause: Specify in the contract that “compensation of 2 times the product value will be paid for microbial contamination exceeding standards.”
Step 5: Inquiry About Service Details (Reveal True Capability)
- Compliance Response: Ask “how to simplify the 2025 safety assessment report process” — factories that answer “we have a template” should be eliminated directly (compliance requires personalized analysis).
- Confidentiality Agreement: Clearly state that “the formula intellectual property belongs to the brand party” and prohibit the factory from retaining backups (a factory in Shanghai once sold a formula to a competitor, causing the brand party to lose 10 million yuan).
III. Case of Avoiding Pitfalls in Factory Cooperation (Emotional Resonance)
An emerging brand collaborated with a factory in Guangdong to OEM sunscreen products. The initial quotation was 0.8 yuan per piece, but during mass production, the factory suddenly raised the price: “An additional 0.3 yuan is needed for testing fees.” Worse still, the product was investigated for falsely labeled SPF values, and the factory refused to take responsibility, claiming “you confirmed the formula.”
✅ Solution: Attach a “detailed quotation list” to the contract, specifying that testing fees, filing fees, etc., are all included, and add a clause that “the factory shall bear all fines for substandard efficacy.”
IV. Practical Guide for Factory Lead Generation in 2026 (Call to Action)
If you are a factory, you can acquire customers through “TikTok + Google SEO”:
- Shoot videos of the filling line, add “skincare OEM factory China 2025” to the title, and attach the official website link in the profile.
- Create a guide titled “How to Obtain ISO 22716 Certification” on the official website, embedding long-tail keywords such as “cosmetic OEM factory selection standards.”
- Case: Shifei Cosmetics increased its foreign trade inquiry volume by 200% in 3 months through this strategy.
Conclusion
The core of selecting the right cosmetic factory is “verify first, then cooperate”: check qualifications three times, pay attention to workshop details, and clarify contract terms. With the rise of compliance costs in 2025, reliable factories will have more advantages — after all, choosing correctly once is better than remedying mistakes ten times.