hi there
about your formulation.
First, you add 3 % lactic acid. in the end, you neutralize with sodium hydroxide to a ph of 6-7. Most of your lactic acid will no longer be in active acidic form by that ph.
2 % allantoin seems to be a lot as far as I know only 0.5 % are soluble in cold water in comparison to the amount of water you are using higher concentrations will probably lead to recrystallization over time with your product even if it is soluble at 80 °C up to 4 %. Due to the fact that allantoin is a water-soluble ingredient it will be washed off either way you should not risk the Recrystallization problem for no effect and only a “claim ingredient” in a rinse-off product (price is something to consider as well).
your conservation system seems a little strange to me phenoxyethanol Benzalkonium chloride Methylchloroisothiazolinone and methylisothiazolinone are a weird combination (never seen anything like that) :). If you use Thiazolinone you can just stick with them I would guess more ingredients there can lead to more allergic reactions.
EDTA is very high at 0.5 % normal concentration would be 0.05 %
2% perfume is very high for a cleansing product that is used close to the nose. 0.5-0.8% I would say. Of course, that depends on the perfume you are using but if you need to use 2 % to get a pleasing scent iw would recommend speaking to your perfume supplier so that they do a rework of the product.
General: Diluting a Cleansing product is possible but it is rather difficult to maintain the use over a range of 80 % dilution without risking either the low level not performing well enough or the high level being too aggressive. although if you dilute and this dilution should hold a few days conservation will be very problematic to maintain in a good way.
I would always prefer to make 2 Formulations in that case one with a higher concentration and one with a lower to be safe.