Raw material distributors in cosmetics: what should they actually do?
The raw materials distributor is a central interface in the cosmetics value chain. Without effective distribution partners, there can be no efficient product development, no reliable costing and no predictable production. This makes it all the more surprising how far apart the expectations and reality are for many suppliers.
The question is therefore justified: What should a raw material distributor actually do today – and what can a customer rightly expect?
A raw material distributor should be able to do more than just pass on orders…
A raw material distributor is not just a letterbox between the manufacturer and the customer. Its task is to create added value – technically, logistically and economically.
This naturally includes:
- the active presentation of new raw materials
- the provision of samples for application testing and product development
- technical advice on application, dosage and formulation
- reliable availability of goods or at least transparent storage and delivery concepts
Sample management is not a ‘bonus’ but a basic requirement. It is an integral part of raw material prices – because without samples there is no development, and without development there is no turnover.
Anyone who slows things down or delays sample shipments is blocking innovation.
Delivery times of 8–12 weeks – for what exactly?
An increasingly common annoyance: raw materials are offered, sold and confirmed – but when you place an order, you are suddenly told ‘delivery time 8–12 weeks’. In many cases, it turns out that
the distributor has no goods, no safety stock, no planning – they simply pass on the order.
This raises a simple question:
What exactly is the service?
Especially in the case of established, regularly demanded active ingredients, developers and manufacturers expect a short response time, not the delivery times of a direct import. Those who merely act as a conduit must be measured against the efficiency of global supply chains – and are increasingly losing this comparison.
Market pricing policy: difficult to explain, even more difficult to communicate
We have been seeing a recurring pattern for years:
- Regular price increases, often at the turn of the year
- Adjustments during the year, justified by external factors
- (customs policy, CO₂ costs, supply chain regulation, deforestation law, packaging regulation, etc.)
Of course, framework conditions change. But what is striking is the lack of transparency and proportionality.
A practical example:
One of our contract manufacturers orders an active ingredient worth around £5,000 and is required to pay in advance – with a delivery time of 10 weeks.
The question is not meant to be polemical, but serious:
Is the distributor still aware of its role in the market?
Or another scenario:
- Required quantity: 19 kg
- European price: €1,740/kg, for purchases of 12 kg containers
- Previous price: €1,650/kg
The price increase is difficult to justify to the customer – even if it amounts to ‘only’ a few cents per item at the product level. Trust suffers, calculations are thrown into question, and development decisions are called into question.
A look at Asia – an uncomfortable comparison
In this specific case, we were forced to look outside Europe. The result:
- Three qualified suppliers in China
- Identical active ingredient
- Price: $268 per kg
Speechless.
Of course, there are additional aspects to consider: quality assurance, documentation, import, regulatory assessment. But even taking these factors into account, the question arises:
What pricing policy do European distributors pursue – and with what goal in mind?
If the gap to global markets becomes too wide, a structural problem arises.
Then it is no longer a question of ‘more expensive’, but of no longer competitive.
MOQ, minimum order values and the reality of product development
Minimum order values of £500, £1,000 or £1,500, combined with MOQs of 25 kg, are simply unrealistic for many market participants.
The question arises:
- Are we still thinking about start-ups, indie brands and pilot projects?
- Has a full calculation of a cosmetic product ever been carried out from a developer’s perspective?
Innovation rarely happens in 25 kg increments. It happens in laboratory quantities, in iterative loops, in realistic quantities. Those who do not support this phase will not be able to scale up in the long term.
Where should the market develop?
A modern raw material distributor should:
- Be a partner to development laboratories and contract manufacturers, not a hindrance
- Explain prices in a comprehensible manner and communicate them at an early stage
- Have storage and delivery strategies that meet market needs
- Include small and medium-sized customers, rather than excluding them
- Enable innovation, not just billing
Anything else will lead manufacturers and developers to look for alternatives – geographically, structurally and strategically.
To raw material manufacturers and active ingredient developers: Let’s work together directly
You develop innovative raw materials, invest in research, data and quality – and in the end, there are often long distances, high mark-ups and slow market launches between your innovation and the finished product.
We ask a simple question:
Why use an expensive distributor when you can work directly?
What we offer:
✔️ Direct technical support for your raw materials
✔️ Rapid integration into real product developments
✔️ Fair, market-driven prices without unnecessary trade levels
✔️ Short paths from idea to marketable product
✔️ Genuine feedback from development, scaling and the market
At Cosactive and Cosmacon, we work with formulators, brands, contract manufacturers and international partners on a daily basis. We know what the market needs, how raw materials are used and what hurdles exist in practice.
If you want your innovative raw materials to:
🚀 be incorporated into products more quickly
📈 be scaled in an economically viable manner
🧪 be used correctly, effectively and marketably…
Direct cooperation means:
More speed. More transparency. More success – for both sides.
Our conclusion on raw material distributors
The market is changing. Product developers are internationally networked, prices are comparable, information is transparent. Pure distribution models without real added value will find it increasingly difficult.
Cosactive knows the raw materials market very well – in Europe and beyond. We know which prices are realistic, where quality is right and where alternatives can be useful.
If you are looking for economically viable, technically sound and market-driven solutions or would like to critically examine existing raw materials, please feel free to contact us.
Sometimes the better solution is closer than you think.