Female Founder World

How to Formulate a Bestselling Beauty Product in 2026

February 14, 2026

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  • Inclusivity in beauty product development must start in the R&D lab, not just through marketing, which motivated AJ Addae to found SULA Labs. 
  • The beauty industry is trending toward the "RXification" of skincare, demanding prescription-strength performance and extensive clinical evidence, even for non-drug products. 
  • Founders must nail down the economic and logistical brief (unit costs, packaging, scalability) *before* approaching a chemist to avoid costly iterations during the formulation stage. 

Segments

SULA Labs Founding Story
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(00:00:00)
  • Key Takeaway: AJ Addae founded SULA Labs after realizing post-2020 marketing inclusivity for melanin-rich skin lacked corresponding R&D support.
  • Summary: AJ Addae previously worked in formulation and clinical testing at a contract manufacturer, focusing on medical-grade products and sunscreens. She observed that while marketing addressed inclusivity, the R&D science lagged behind. This realization, that inclusivity starts at the bench, prompted her to quit her job and start SULA Labs in 2021/2022.
Early Funding and Partnerships
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(00:03:50)
  • Key Takeaway: Initial funding for SULA Labs came from a Black Futures Month GoFundMe, significantly boosted by unexpected donations from industry leaders like Youth to the People and Topicals.
  • Summary: The initial fundraising effort, framed as Black Futures Month, raised a small amount before Greg from Youth to the People donated $5,000, validating the mission. Shortly after, Olami Day from Topicals donated $1,000, providing crucial early capital. A subsequent Twitter thread explaining the necessity of preservatives during a public discourse involving The Honey Pot Co. led to a partnership and further growth fuel.
Scaling from Formulator to Powerhouse
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(00:06:48)
  • Key Takeaway: SULA Labs scaled by evolving its identity from just a product formulator to an R&D powerhouse specializing in inclusivity gaps through strategic team hires.
  • Summary: The business proposition shifted from simply creating products to specializing in formulations for melanin-rich skin and textured hair. This required hiring experienced personnel, including a team member with decades of haircare scaling experience and later, a dermatologist to accelerate clinical testing capabilities. This evolution allowed SULA Labs to address the science behind inclusivity gaps effectively.
Current Beauty Trends Analysis
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(00:08:53)
  • Key Takeaway: Key emerging beauty trends include hybrid skincare-makeup products, the expansion of hair care brands into body care, and niche body care like foot care.
  • Summary: Trends are identified when intake forms consistently request similar product concepts, often preceding their appearance on shelves. Hybrid color products (like blush/lip) were seen in late 2023/early 2024, followed by an increase in light fluid delivery systems like face mists and essences. Textured hair is seeing its own ‘Olaplex moment,’ and fragrance is also a booming category.
Slowing Trends and RXification
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(00:11:34)
  • Key Takeaway: Traditional barrier care is slowing down as consumers increasingly seek ‘RXification’—prescription-strength performance from over-the-counter skincare.
  • Summary: The peak interest in general barrier care, prevalent in 2021-2023, is declining. Consumers now expect visible, before-and-after results similar to injectables, evidenced by high search volumes for prescription-strength ingredients like ketoconazole. This drives the need for extensive clinical data, with some brands now requesting four-week data for results previously expected over twelve weeks.
Claims Testing and Retailer Requirements
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(00:14:14)
  • Key Takeaway: To meet retailer standards, brands can leverage ingredient research data for low-cost claims substantiation or invest over $10,000 for full clinical studies on finished goods.
  • Summary: Full clinical testing (e.g., 12-week data) for a single SKU can cost over $10,000, though bundling regimen testing is an alternative. A bare-minimum approach involves hiring a researcher to audit existing ingredient data to support claims. Brands must be careful not to imply treatment of chronic conditions like hyperpigmentation or acne, using phrases like “improves the appearance of skin tone unevenness” instead.
Formulation Process and Economics
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(00:18:54)
  • Key Takeaway: Successful formulation requires founders to define unit costs, ingredient expense tolerance (e.g., expensive actives like Azelaic Acid), and packaging vision before starting R&D.
  • Summary: The initial step involves market research to understand competitor pricing and ingredient costs, which dictates the feasibility of the target unit cost. High-cost ingredients necessitate high-volume production or a higher retail price point. A well-defined brief backed by evidence minimizes iterations in the actual formulation stage, as the initial vision must align with economic realities.
Clean Beauty and Ingredient Philosophy
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(00:22:06)
  • Key Takeaway: Clean beauty often increases formulation costs and shelf-life risk due to sourcing requirements and the avoidance of effective preservatives, necessitating careful economic planning.
  • Summary: Clean beauty standards, such as specific sourcing methods, drive up ingredient costs significantly compared to standard suppliers. Avoiding preservatives leads to an ‘Erewhon smoothie effect,’ requiring costly opaque packaging to mitigate spoilage. While chemists appreciate all chemicals, ingredients like sulfates and parabens are becoming outdated due to evolving customer expectations, though they still offer cost benefits.
Business Resources Recommendation
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(00:25:36)
  • Key Takeaway: Founders should subscribe to trend intelligence newsletters like Spate and listen to founder-focused podcasts to understand market problems that inform service structuring.
  • Summary: Spate publishes newsletters detailing year-over-year trending ingredients based on search volume, providing early insight into market direction. Listening to podcasts like Female Founder World and How I Built This helps founders understand the problems other entrepreneurs face. Hearing founder challenges directly helps SULA Labs structure its services to best help clients succeed.