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How to start a Lipstick Manufacturing Business? New Business Ideas.

Lipstick Manufacturing Business Ideas

Are you looking for great business ideas? Then this article regarding lipsticks manufacturing business will help you to start your new business. We will provide all the details regarding the raw materials required, machinery types, manufacturing processes, and selling analysis of making lipsticks.

Lipstick is used by women to decorate and beautify purposes. It makes women's lips more beautiful and attractive. Lipsticks help the lips from bursting and also keeps them soft.

The lipstick is considered under the beauty products and cosmetics category. There are various types such as lipstick, lip gloss, lip liner, and lip balm. There are two types of lipsticks such as glossy finish and matte finish. Currently, the matte finish is more popular in the market.

Lipsticks are made from wax and pigments. Lipsticks are in great demand as they are used in various occasions in daily life by women.

The lipsticks are packed in plastic or aluminum tubes. generally, the weight of lipsticks is 3-5 grams. as it is packed in small quantities the prices are also the least expensive. There are various shades and colors of lipsticks available in the market.

The sizes are not uniform in lipsticks and may vary, however, the common lipstick size is 3 inches in length and .50 inch in diameter. The lipsticks tube has two parts, one is the base stick and the other is cover. The single lipstick can be used for about 100 to 250 times.

Market Potential

As consumer spending and lifestyle improvement are increased day by day the premium lipsticks are more in demand due to the advertising and promotion done on television and social media. This has increased the usage of cosmetic and beauty products all over the world.

The beauty products are in great demand in the market. The cosmetics products are having an enormous demand in India as well as in other countries. The lipsticks can be also exported to various other countries as the demand is also increasing.

The demand for lipstick is throughout the year and are the least expensive beauty products. For extra benefit, you can start manufacturing new natural and chemical-free safe lipsticks which are more concerned as now.  

As the lipsticks are used by every sector whether urban or rural areas as it makes women look beautiful. The lipsticks are used on every occasion for the beauty and style. So, starting a lipstick manufacturing business can be highly profitable.

Factors to be considered in the making of lipstick

  • Lightweight

  • Comfortable to use

  • Application duration

  • Lipsticks shades

  • Pigment color

  • Smooth texture

  • Long-lasting effect

Business procedure

Before starting this business, you may need to analyze the market demand for lipsticks. Have a proper plan about the types of lipsticks you will be manufacturing and a detailed layout of the machinery and raw materials. It involves the preparation, blending, and packaging of the lipsticks. These are the basic details required for starting a lipstick manufacturing unit.

The business registration has to be done with ROC (register of companies). The Trade license and NOC from the local authority is also needed. GST and Trademark should be registered.

For extra advantage, you must apply for an ISO 9001 certificate which can be easily applied.

For large scale registering for a private limited company and small scale apply for LLP or proprietorship.

The registration of MSME Udyog Aadhaar is to be done. The BIS certification is also mandatory to start this unit.

The most important license to be needed to start a lipstick business unit is license under the Drug and Cosmetics Act.

The minimum Area required to start this unit is - 600 SQ MT. There are different areas for production and storage.  Location is an important aspect of starting a business. Facilities like electricity, water supply, ease of transport facilities are necessary.

Raw Materials required for making Lipsticks

The main components in making lipsticks are Wax, Oils, and Dyes. Lipsticks are a mixture of oil and waxes.

  • Wax – the main component in lipsticks making is wax. There are various types of wax such as beeswax, candelilla wax, orange wax, and jasmine wax. wax is used to seal moisture and color and your lips. It also provides a shape and design in making lipsticks. 20-30 %

  • Oils – the various oils are used in lipsticks to provide a better moisturizing effect and help to mix the waxes to provide a smooth texture. Oils such as mineral, vegetable olive oil, avocado oil, and castor oil are used. Castor oil 60-70 %

  • Butters- the common butter used are cocoa butter, lanolin, and mango butter. It helps to protect and moisturize the lipsticks.

  • Fragrance- The selection of fragrance is an important aspect of making lipsticks. To increase the value of lipsticks, fragrance, or scent are added to the lipsticks. They are mixed with the other ingredients in the mixing machine. There are natural fragrances and synthetic fragrances available in the market. The customer also checks the scent or smell of the lipsticks before purchasing so adding a little fragrance in the lipsticks can be beneficial. There are various types of scent such as rose, henna, and khus.

  • Preservatives- It is used to protect the lipstick ingredients from betting bad and increase the duration of lipsticks. There are natural preservatives (neem oil, cinnamon, and vitamin E) and synthetic preservatives (BHT and formaldehyde) used in making lipsticks.  0.2-0.5%.

  • And while every lipstick contains these components, a wide variety of other ingredients can also be included to make the substance smoother or glossy or to moisten the lips. Many other ingredients can be added from better appearance.

  • Isopropyl myristate: 5-7%

  • Pigments: 3-7%

  • Stearic Acid

The ready-made liquid pigments dispersion can be used directly purchased from the market but it is more expensive. It can be directly added to the oil and wax mixture without any pre-processing. There are various types of material required for making lipsticks which are easily available in the market and can be purchased online in various B2B portals such as India mart and trade India.

You may need to purchase the plastic or aluminum tubes directly from the market which is available in various sizes and shapes. There are different ingredients also available in the market by which the lipsticks can be made.

Machinery required for manufacturing lipsticks

  • Mixing tank – the mixing machine is used for mixing the ingredient.

  • Heating Machine- the heating machine has 2 parts one is a water container at the bottom and the other is the mixture vessel tank at the top of the water container. The mixture tank is kept at the top to prevent the materials from slurry from getting burnt.

  • Dye or Mould- dyes are used for the shaping of lipsticks. Various sizes and shapes are available in the market according to the requirement. Tight molds are used to prevent the formation of air bubbles and vertical molds are used in making lipstick. 

  • Flaming and glaze machine - Lipstick flaming with conveyor is used in this process for shining and increasing the gloss of the lipstick. The flaming process is used for a better visual appearance, removing moisture and removing any surface mold defects.

  • Triple Roller mill - it is used for preparing the powdered pigment into the part of the oil mixture.

  • Jacketed vessel - this vessel is used for the melting of the waxes separately.             

  • Lipstick filling machine-

  • Chilling or refrigeration unit-

Manufacturing Process of making lipstick

There is no standard lipstick size and shape. You can start making the common sizes of lipsticks available in the market.

Steps for making lipsticks

  • Melting of Wax

  • Mixing of all ingredients

  • Molding

  • Packing of Tube

  • Storing

Melting and Mixing of the lipstick mixture

The lipstick making starts with the heating of beeswax and various soluble oils are added in this process.

Castor oil is heated 80-90 C and colors are added in this process, solvent and liquid oils are mixed with the color pigments with the help of a mixing machine.

The waxes are melted separately in a hemispherical jacketed vessel. The beeswax is poured into the melting tank.

Castor oil and colors are mixed separately and the remaining ingredients such as wax are heated in the melting machine. After that, the wax mixture is added to the oil mixture with the help of a mixing machine. The mixing of oil and pigment is done in a 2 to 1 common ratio. Wax and oil constitute 60 percent of the total process.

During the mixing process the fragrances, preservatives, and pigments are added into the mixture. Raw ingredients are melted separately and after that oils and solvents are mixed. The mixture is grind to fine particles at a size between 20 microns.

Molding process

Then the mixture is passed through the roller mill where the grinding process is done. After the uniform color of the mixture is processed the mixture is directly poured into tubing molds. The mixture is poured into the molds at a lower temperature and left for the cooling process.

The bottom portion of the molds is of metal or plastic tube which has the shaping portion or corner shape. The mixture is poured from the upside-down so that the bottom portion gives the lipstick shape.

After that, the lipsticks are passed through the cooling process in the refrigeration unit. After the cooling of the sticks, it is transferred into the plastic tubes.

The fluid mixture is to be directly poured into molds. If the mixture is kept for longer hours it must be again reheated and adjusted again before pouring into molds. The lipsticks are unmoulded by hand in manual process and after checking the product passed for packaging.

Packaging process

The flaming and glazing machine is used for better gloss and visual appearance. Flaming Process – The ready lipstick sticks are placed near the open flame torches where the small layer of the lipstick’s melts and a layer of gloss forms on the edge.

The moisture should be removed from the molds before putting it into the tubes. After the stick is dried it is transferred into the plastic or aluminum tubes.  

The process completes with the packaging of ready lipsticks into various packets or boxes.

Final inspection

The final inspection should be taken care of as the lipsticks are used on lips such as color control, dispersion of pigment, grinding of the mixture.

Last the lipsticks are visually inspected to check any defects such as air holes, pinholes, finish or mold separation lines.

The quality control is to be taken special care as the lipsticks are to be according to the Food and Drug Administration (FDA) standards.

As the fashion trends are changing day by day.  Making perfect lipsticks consists of many tries and research. You can check the current available lipsticks makers and learn the making of lipsticks from them. It will help to understand the formula and composition of lipsticks making.

There are various formulas for making lipsticks according to the ingredients. This is the general formula; you can change the materials according to your customization.

Pricing analysis

The pricing of the lipsticks should be based on the type of ingredients, packaging type, and market selection. There are expensive lipsticks available in the market.

The profit margins are around 15 to 25 percent depending upon the lipsticks range and sizes. for starting a small scale business you can achieve between 25000 to 50000 profit per month.  

The manual process of lipsticks is around 200 tubes per hour. Lipsticks can be also produced automatically at a speed of 2500 tubes per hour.

There is high competition in the lipstick market. You need to provide newer types, designs, and fragrance to enter into the market. Before starting this business you need to research various compositions of lipsticks, create new types of scent, better packaging, good visual appearance.

Selling of Lipsticks

The proper packaging is the most important step in the lipstick business as the product can be sold easily if proper appearance and packaging of the lipstick is done. The Packaging and Branding plays an important role in generating sales and increasing your profit in the lipsticks business.

You can start providing free samples to your family and friends and ask the feedback for any changes before launching in the market. You can start the selling of your lipsticks by providing a lesser price and better quality with new packaging. The aluminum covers of lipstick can be made of gold or silver color.

There are a variety of packaging options available in lipstick such as a single tube, packet of 5 lipsticks, makeup kit, special promotional box. There are various types of shades and colors available in the market according to different people's usage. Generally, around 25 main shades are more popular.

For offline start with local markets such as beauty stores, shopping malls, and wholesalers.  Also, Online platforms such as Amazon, Flipkart, and B2B come very useful for selling lipsticks directly to the end-user easily.

Also, you can set up an eCommerce store online and start promoting your products on various social media. You need to keep the popular stock of lipsticks according to the color.

For starting this business if you are having a low budget then you can start with a particular range of shades. This will help to understand the demand analysis. you need to learn strategies from other manufacturers, learn from their marketing techniques, and make popular products. have a proper social media advertising method.

Precautions -

Various training and learning procedures are required before starting this business. the area should be in a controlled environment and contamination-free.

Lipsticks are manufactured in small batches according to colors requirement. For different colors, you may need different batch making. You may also need to take care of the cleaning process after every batch is made.

The product quality and consistency should be the same for every batch. You need to have a proper note about the composition of the formula of each type of lipstick.

Do not use any ingredients in making lipsticks that are harmful to the health of people. you have to make sure that the lipsticks are safe and not have any side effects on your health.

Also, make the packaging of lipsticks in a proper medium so that it will not dry out and damage the product.

The important things to consider in making lipsticks are color, dryness, scent, and opacity.


Lipstick business manufacturing can be a profitable business as the growth is increasing.  You can start this business with a small scale selling within your area. This will help to understand the demand and experience to start a large-scale business manufacturing unit.

You can also start manufacturing Mascara and Kajal with the making of lipsticks together as most of the machines and raw material are the same for three types. This may increase the brand value, be better profitable, and can be beneficial for sales growth. Three makeup items from a single manufacturing unit. you can also start making lip liners, new types and shades of lipsticks and pencils.

If you have any doubt, please comment on the below box

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  1. using green colour for underlining the content is not a great idea. yellow is still a viable option and it looks good in terms of design but next time stay away from green..being a content writer myself, i know what works and and what not ... sorry if you felt offended.

    1. Thank you very much for your suggestions. have modified the green colour headings.
      which are the other options for highlighting the sub heading in the post ?

  2. please tell me how can i get manpower or which kind of expert people are required to setup a lipstick business?