For new skincare brands, one of the biggest barriers to entry is Minimum Order Quantity (MOQ). Most manufacturers require large commitments — often 500,000 to 1,000,000 units per order. For an unproven brand, that's a risky bet.
But softgel manufacturing is changing. Some factories now offer lower MOQs specifically designed for startups and emerging brands. Here's what you need to know about MOQs and how to use small-batch production to test the market without overcommitting.
What Is MOQ and Why Does It Exist？
MOQ is the minimum number of units a manufacturer requires for a single order. It exists because production has fixed costs: raw material sourcing, machine setup, filling line calibration, quality control, and labour. These costs are spread across each unit. Larger batches reduce per-unit cost. Smaller batches increase per-unit cost.
For the manufacturer, MOQ ensures profitability. For the brand, it's a financial commitment that needs careful planning.
Typical MOQs in Skincare Manufacturing
Traditional manufacturers often require:
Bottled liquids – 10,000–50,000 units
Softgel capsules – 500,000–1,000,000 capsules
Creams and lotions – 5,000–10,000 units
For a new brand, these numbers can be daunting. A 500,000-capsule order ties up significant capital and warehouse space before you've even made a single sale.
Why Softgel MOQs Are Often Higher
Softgel manufacturing involves specialised equipment: encapsulation machines, drying tunnels, and custom moulds. Setup costs are significant. Changing between formulas, colours, or shapes requires cleaning and recalibration. That's why most factories set high MOQs for softgels.
However, some manufacturers now offer lower MOQs for softgels — as low as 100,000 capsules per formula. This is still a commitment, but it's manageable for many startups.
How New Brands Can Test the Market with Small Batches
1. Start with a Flexible Manufacturer
Look for a factory that offers flexible MOQs. Some manufacturers are willing to work with new brands on smaller runs, understanding that you need to validate your product before scaling. Ask about their minimums upfront. If they're rigid and unwilling to negotiate, they may not be the right partner for your early stage.
2. Launch a Hero Product
Instead of launching a full range, start with one hero product — your best formula, your most compelling concept. This reduces your initial investment and lets you focus your marketing efforts on a single SKU. Once it gains traction, you can expand the line.
3. Use Blister Packaging Instead of Custom Moulds
Custom capsule shapes require expensive moulds and higher MOQs. For your first run, use standard shapes (round, oval, teardrop). Blister packaging costs less than custom jars and offers a premium presentation. Save custom shapes for later when you have volume.
4. Test Through Sampling and Discovery Sets
Small batches are ideal for discovery sets, sample packs, or subscription box trials. You get your product in front of customers without a full-scale launch. Gather feedback, refine your formula, and build demand before committing to larger orders.
5. Plan Your Reorder Cycle
With a 100,000-capsule MOQ, you need to sell through that inventory before reordering. Calculate your expected monthly sales, factor in a buffer, and plan your reorder timing carefully. Running out is bad. Running out and not having capital for the next order is worse.
What to Watch Out For
Per-unit cost will be higher – smaller batches mean higher per-unit costs. Accept this as the price of market entry. Your focus should be on validating the product, not maximising margin on the first run.
Lead times may be longer – manufacturers sometimes prioritise larger orders. Confirm lead times upfront and build in buffers.
Minimums on packaging – even if the factory offers low capsule MOQs, packaging suppliers may have their own minimums. Factor this into your planning.
We Offer Flexible MOQs for New Brands
We manufacture custom softgel capsules with a MOQ of 100,000 capsules per formula — designed specifically for emerging brands. We offer standard capsule shapes, custom colours, blister packaging, and full OEM/ODM services. We understand that startups need to test the market before scaling.
Tell us your concept – we'll provide a custom development plan and quote within 24 hours.
Your brand. Our expertise. Made in Guangzhou.