What is Minimum Order Quantity (MOQ)
Minimum Order Quantity, or MOQ, is the smallest production run a manufacturer will accept. For private label manufacturing in the Philippines, the standard MOQ is 250kg per SKU.
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MOQ is measured in kilograms of finished product, not number of units. A 250kg order translates to different unit counts depending on bottle size and product density. For example, 250kg of lotion in 100ml bottles produces approximately 2,500 units, while 250kg of serum in 30ml bottles produces approximately 8,300 units.
Understanding MOQ is critical for budgeting your first production run. The MOQ determines your total manufacturing cost, inventory level, and storage requirements.
For general guidance on private label, read our guide on private label manufacturing in the Philippines.
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MOQ by Product Category
Different product types have different MOQs based on manufacturing requirements and raw material sourcing.
Personal Care and Cosmetics
Standard MOQ for personal care products is 250kg per SKU at Orsolab. This applies to:
- •Lotion and cream: 250kg = 2,500 to 3,300 units (100ml bottles)
- •Shampoo and conditioner: 250kg = 1,250 to 1,500 units (200ml bottles)
- •Body wash and hand soap: 250kg = 1,250 to 1,500 units (200ml bottles)
- •Facial serum: 250kg = 8,300 to 10,000 units (30ml bottles)
- •Whitening products: 250kg = 5,000 to 8,300 units (50ml tubes)
Personal care products require precise formulation and quality control, making smaller batches inefficient. The 250kg minimum ensures consistent quality and cost-effectiveness.
Cleaning and Household Products
Cleaning products also follow a 250kg MOQ but produce different unit counts due to larger packaging sizes:
- •Dishwashing liquid: 250kg = 500 to 625 units (500ml bottles)
- •All-purpose cleaner: 250kg = 500 to 625 units (500ml bottles)
- •Floor cleaner: 250kg = 250 to 333 units (1L bottles)
- •Fabric conditioner: 250kg = 250 to 333 units (1L bottles)
Cleaning products have lower unit counts per MOQ because consumers typically buy larger sizes.
For cost planning across categories, see our guide on contract manufacturing costs.
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Why Manufacturers Have MOQs
MOQs exist for three primary reasons: production efficiency, raw material procurement, and profitability.
Production Efficiency
Setting up manufacturing equipment, preparing formulations, and conducting quality testing takes the same time whether producing 50kg or 500kg. Small batches spread fixed setup costs across fewer units, making per-unit costs uneconomical for both manufacturer and brand.
A 250kg batch allows the manufacturer to achieve production efficiency while keeping total order value manageable for small brands.
Raw Material Procurement
Most raw materials are sold in minimum quantities. Emulsifiers, preservatives, active ingredients, and fragrances come in 5kg, 10kg, or 25kg containers. Manufacturing a 50kg batch still requires purchasing the same raw material quantities, creating waste or forcing the manufacturer to hold excess inventory.
A 250kg MOQ aligns with raw material packaging sizes and minimizes waste.
Manufacturer Profitability
Manufacturing facilities have fixed costs including rent, utilities, labor, and compliance. Accepting orders below a certain size produces insufficient margin to sustain operations.
The 250kg MOQ ensures each production run generates enough revenue to cover fixed costs and maintain quality standards.
How to Calculate Units from Kilograms
Calculating unit count from a kilogram order requires knowing bottle size and product density.
Calculation Formula
Units = (Total kg × 1000g) ÷ Product weight per unit
Product weight per unit includes the product itself, not the bottle. For example:
- •100ml lotion weighs approximately 100g (density ~1.0)
- •200ml shampoo weighs approximately 200g (density ~1.0)
- •30ml serum weighs approximately 30g (density ~1.0)
Example Calculations
Example 1: Lotion in 100ml bottles
- •Order: 250kg
- •Product weight per unit: 100g
- •Units = (250 × 1000) ÷ 100 = 2,500 units
Example 2: Shampoo in 200ml bottles
- •Order: 250kg
- •Product weight per unit: 200g
- •Units = (250 × 1000) ÷ 200 = 1,250 units
Example 3: Facial serum in 30ml bottles
- •Order: 250kg
- •Product weight per unit: 30g
- •Units = (250 × 1000) ÷ 30 = 8,333 units
Your manufacturer provides exact unit counts during quotation based on your chosen packaging size.
Learn more about packaging options in our guide on private label cosmetics.
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How to Plan Your First Order
Planning your first order requires balancing MOQ requirements with sales projections and storage capacity.
Assess Your Sales Velocity
Estimate how many units you can sell in 3 to 6 months. If you project 500 units sold in the first 6 months, a 250kg order producing 2,500 units leaves you with 2,000 units of unsold inventory.
Consider starting with smaller packaging sizes to increase unit count and reduce inventory risk. 50ml bottles instead of 100ml bottles double your unit count for the same 250kg order.
Storage and Shelf Life
Cosmetic and personal care products have shelf lives of 24 to 36 months when stored properly. Calculate whether you have adequate storage space for 2,500 to 8,000 units and whether you can sell through inventory before expiration.
Brands selling primarily online face lower storage costs than brands pursuing retail distribution. Online brands can store inventory at home or in small warehouse spaces.
Budget for Total Order Value
A 250kg order costs ₱100,000 to ₱300,000 depending on product complexity and packaging. Add FDA registration, labeling, and packaging costs to calculate total investment.
Budget conservatively for your first order. Order exactly at MOQ until you validate product-market fit and sales velocity.
Cost Implications of MOQ
Ordering at MOQ vs above MOQ has significant cost implications.
At MOQ (250kg)
Per-unit cost is highest at MOQ. Manufacturing costs ₱40 to ₱80 per unit all-in for most personal care products at 250kg order size. This includes formulation, filling, and basic packaging.
Fixed costs (setup, R&D, testing) are spread across the minimum number of units.
Above MOQ (500kg or 1,000kg)
Per-unit cost drops 10% to 20% when ordering 500kg instead of 250kg. Larger orders amortize fixed costs across more units and allow bulk raw material purchasing.
A 500kg order reduces per-unit cost from ₱60 to ₱50. A 1,000kg order reduces per-unit cost to ₱45.
The tradeoff is higher total investment and more inventory to sell through. Only scale up once you have validated demand.
For detailed private label services, visit our private label services page.
Frequently Asked Questions
What is the smallest order I can place for private label manufacturing?
The smallest order you can place is 250kg per SKU at most Philippine manufacturers including Orsolab. Some manufacturers accept 100kg orders at a premium per-unit cost, but 250kg is the industry standard. Ordering below 250kg significantly increases per-unit costs because fixed setup costs are spread across fewer units. If you cannot commit to 250kg, consider starting with one product instead of multiple SKUs.
Why do manufacturers have minimum orders?
Manufacturers have minimum orders because production setup, raw material procurement, and quality testing have fixed costs regardless of batch size. Manufacturing 50kg requires the same equipment setup, cleaning, and testing as manufacturing 500kg. Without MOQs, the manufacturer loses money on small orders. MOQs ensure each production run covers fixed costs while maintaining quality standards. The 250kg standard balances manufacturer profitability with accessibility for small brands.
Can I split one MOQ across multiple products?
No. MOQ applies per SKU, not per total order. If you order three products, you need 250kg of Product A, 250kg of Product B, and 250kg of Product C. You cannot order 250kg total split into 83kg of each product. Each SKU requires separate setup, formulation, and quality testing. Splitting an MOQ across products is not operationally feasible. Start with one product at 250kg, validate demand, then add more SKUs in subsequent orders.