The 39-year-old singer/songwriter has partnered with E.l.f. Beauty and has been working on the new project, which will include "skin-loving, dermatologist-developed, cruelty-free products", for the past nine months.
E.l.f. chief executive officer Tarang Amin told WWD: "She's been wanting to do something in beauty and wellness for quite some time.
"What really appealed to us is she's much more than a celebrity, she's someone of real substance who goes between being a 15-time Grammy Award winner and artist [and] she's got a New York Times bestseller in her book, 'More Myself'. This was really a great marriage between what she stands for and wants to accomplish in beauty and wellness and what we stand for."
Alicia's brand is set to focus on "inclusivity, empowerment, wellness and self care".
Amin added: "It's so much more than just the products. She has such important messaging on inclusivity, empowerment, wellness, self care, rituals - so really being able to bring all those elements out in rich storytelling is a key part of what this brand is going to be about."
The new project will be fully owned by E.l.f., but Alicia is set to become a shareholder.
Meanwhile, Alicia previously launched a #nomakeup campaign in 2016 and said: "It doesn't have anything to do with make-up or no make-up. It has to do with who are you, what makes you feel good, how do you want to express that and even just asking the questions - 'What do I feel? How do I feel good?' However that is, you should do it. I love my lip gloss, I love my blush, I love my eyeliner. It's not about that. At the same time, I don't want to feel beholden - to have to do it."