If you’re leading a growing cosmetics manufacturing company, you already know: scaling isn’t just about producing more units. It’s about staying true to your brand’s reputation, delivering consistent quality, navigating compliance hurdles, and doing it all without missing a beat.

The beauty industry is expanding fast — The market is expected to grow at an annual rate of 3.37% (CAGR 2025-2030). But with growth comes complexity. New markets bring new regulations. Bigger volumes stretch your supply chain. Speed-to-market pressure mounts. In short? Scaling exposes every small crack in your operations.

Patchwork systems and manual workarounds don’t survive at scale. In this guide, we unpack the top 5 challenges CEOs face—and how smarter, cosmetic-specific systems like Mar-Kov ERP help brands scale sustainably.

Challenge 1: Navigating Regulatory Minefields

As your brand expands into new markets, each region introduces its own set of rules, regulatory frameworks, and documentation expectations. For example:

• The FDA requires strict labeling, claims substantiation, and ingredient safety standards for cosmetics sold in the U.S. (FDA Cosmetics Labeling Guide)
• Health Canada’s Hotlist bans or restricts over 500 substances from cosmetic use (Health Canada Hotlist)
• The EU’s Regulation (EC) No 1223/2009 mandates safety assessments, responsible person declarations, and CPNP notifications for any product sold in Europe (EUR-Lex EC 1223/2009)

In fact, McKinsey estimates that companies can lose up to 10% of their market value following a major recall (McKinsey).

Cosmetics CEOs need compliance to be more than a back-office function, it must be a core competency. Leading companies are embedding compliance automation into their product lifecycle using GMP-compliant cosmetic manufacturing software like Mar-Kov.

✔️ Auto-generate audit-ready batch records
✔️ Validate ingredients against up-to-date global lists (FDA, EU, Health Canada)
✔️ Manage SDS and CoA documentation with version control

The COVID-19 pandemic exposed widespread supply chain vulnerabilities across industries—cosmetics included. In 2021, 75% of global companies reported significant disruptions to their supply chains (McKinsey).

Cosmetic manufacturers—particularly those sourcing activities, packaging components, and specialty ingredients across continents—were hit hard. Raw material delays, price volatility, and vendor capacity constraints created bottlenecks that many brands are still recovering from.

What complicates matters further is regulation: For example, the EU’s cosmetic regulations require that traceability be maintained for all ingredient origins, even in the event of supplier swaps (EU Regulation EC No 1223/2009). Likewise, the FDA mandates ingredient disclosure and cGMP practices under Title 21 CFR Parts 700-740 (FDA Cosmetic Regulations).

With real-time inventory and material requirements planning (MRP) in tools like Mar-Kov, you can:

✔️ Maintain accurate on-hand and safety stock levels for high-risk SKUs
✔️ Use predictive ordering tools that account for lead times and volatility
✔️ Qualify, rate, and track supplier performance over time to reduce blind spots

Challenge 3: Quality Must Scale, Too

Scaling cosmetics production magnifies quality risks. While a batch of 1,000 units may seem manageable, at 100,000 or 1 million units, a single deviation can result in widespread damage—product recalls, retailer penalties, and brand reputation loss.

According to the U.S. Food & Drug Administration (FDA), cosmetic recalls often stem from microbial contamination, mislabeling, or undeclared allergens—all of which are preventable with effective quality systems. The EU’s Regulation EC No 1223/2009 similarly mandates that all cosmetics sold in Europe must undergo safety assessments and follow strict quality assurance protocols.

Even one failed audit or recall can have devastating financial consequences: the average recall costs a cosmetics brand between $2 million and $10 million in direct losses, not including litigation or consumer backlash (Cosmetics Business).

With Mar-Kov’s Quality Management tools, companies:

✔️ Deploy in-process QC with real-time deviation alerts
✔️ Auto-generate CoAs based on lab inputs and batch results
✔️ Create compliant digital audit trails aligned with FDA, Health Canada, and EU standards

Challenge 4: Legacy Systems Can’t Keep Up

Many fast-growing companies still rely on spreadsheets, email threads, or legacy ERPs designed for discrete manufacturing—not for batch-based processes like cosmetics. These tools lack capabilities such as real-time recipe scaling, lot-level traceability, automated audit trails, and integrated compliance features.

According to the U.S. Food and Drug Administration (FDA), cosmetics manufacturers must meet Good Manufacturing Practice (GMP) guidelines under Title 21 CFR Parts 700-740, which cover recordkeeping, safety substantiation, and product labeling (FDA Cosmetic Regulations). Meanwhile, the EU requires cosmetics to comply with Regulation (EC) No 1223/2009, which mandates safety assessments, Product Information Files (PIF), and full ingredient traceability (EU Regulation).

As companies expand SKUs, markets, and production volumes, these gaps compound quickly—slowing growth and exposing brands to unnecessary risk.

Modern CEOs are investing in batch manufacturing software for cosmetics before outdated tools stall growth. Mar-Kov offers:

✔️ Real-time recipe scaling and digital batch sheets
✔️ Systemwide traceability—from raw materials to final product
✔️ API integrations with accounting, shipping, and CRM systems

Challenge 5: Scaling the Right Team

Scaling operations without scaling people is a fast path to burnout, quality lapses, and operational bottlenecks. But hiring experienced talent—especially in production, QA, and regulatory roles—is harder than ever. According to a study by The Manufacturing Institute and Deloitte, published by the National Association of Manufacturers, over 2.1 million U.S. manufacturing jobs could go unfilled by 2030 due to widening skills gaps and a shortage of trained workers (NAM Report).

As roles become more specialized, onboarding takes longer, tribal knowledge disappears, and talent turnover becomes a strategic risk.

Winning cosmetics brands treat operational scalability as a people-first challenge, not just a technology one. With Mar-Kov, cosmetics companies:

✔️ Cut onboarding time with embedded SOPs and training workflows
✔️ Standardize processes across shifts and locations
✔️ Reduce repetitive tasks so teams can focus on value-added work
✔️ Create safer, smarter work environments that attract top-tier talent

Scaling Cosmetics Manufacturing Without Losing Your Mind

Scaling a cosmetics manufacturing operation is a rewarding but complex journey. As your brand grows, so do the demands on your production systems, regulatory processes, and supply chain coordination. To scale successfully, you need a platform that not only keeps up—but enables you to grow smarter.

Mar-Kov is purpose-built for batch manufacturers like cosmetics brands, providing a complete operational backbone that supports scale across people, processes, and facilities.

Here’s how Mar-Kov supports your next phase of growth:

✔️ Standardize and scale operations across multi-site environments with centralized controls
✔️Accelerate product launches through real-time production data and recipe management
✔️Automate compliance with built-in traceability, audit readiness, and global regulatory alignment
✔️ Stabilize your supply chain using predictive planning, vendor tracking, and MRP automation

By embedding Mar-Kov into your operations, you’re not just preparing for growth – you’re building a business that can scale efficiently, stay compliant globally, and respond confidently to market demands.

About the Author

Alex Koves leads Mar-Kov with a focus on delivering purpose-built software tools that simplify complex manufacturing challenges. With a background in operations management, he is passionate about helping businesses optimize their processes and achieve operational excellence.