The differences between Contract Supplement Manufacturing and Private Label Supplement Manufacturing?

Outsourcing the production of nutraceuticals has helped supplement brand owners to focus all their entrepreneurial energies on marketing and promoting their offerings. This business model is a win-win for everyone involved since it allows brands to minimize capital outlays and enables specialists to focus on what they do best – production and quality.

Under dietary supplement outsourcing, the two most popular manufacturing outsourcing options are:

1. Contract Supplement Manufacturing
2. Private Label Supplement Manufacturing

Allow me to explain what distinguishes these two from each other and which one provides supplement brand owners with a broader range of advantages.

What is Contract Supplement Manufacturing?

Contract manufacturers have become strategic partners for supplement brands. In this model, the brand (or buyer) gets in touch with a manufacturer to take care of the entire production and design cycle of their product based on the specifications provided, discussed, and agreed upon.

Collaborating with a contract manufacturer helps the buyer get professional advice from an expert on sourcing, formulation, and manufacturing processes. Most contract manufacturers also have a strong network of sourcing partners, suppliers, attorneys, regulatory experts, labs, etc.

What is Private Label Supplement Manufacturing?

Private label manufacturing refers to companies that make dietary supplements that are bought by brands and resold with the latter's branding. Basically, the buyer purchases the readymade dietary product from the private label manufacturer and puts their name on it.

Supplement brands can buy dietary products from a private label manufacturer in bulk or in the form of pre-bottled products that are ready for packaging and labeling. Private label manufacturing is generally preferred by brands that wish to enter the market quickly.

What are the differences between Contract Supplement Manufacturing and Private Label Supplement Manufacturing?

Here is an honest comparison between the two types of supplement manufacturers in terms of key advantages and disadvantages:

• While the contract manufacturer offers expert advice and handholding in the formulation-to-labeling process, the supplement brand retains complete control over the manufactured product. In the case of private label manufacturing, it is the manufacturer who has control over the product, its specifications, formulation, manufacturing, and quality.
• A contract supplement manufacturer can help brand owners with research, ingredient sourcing, product development, manufacturing, analytical lab testing, quality control, compliance, and certifications. Opting for private label manufacturing means that the brand will not have any control whatsoever on these processes. They will only have access to the final product.
• There is a higher degree of transparency and accountability, and enormous room for innovation in contract manufacturing, as opposed to private label manufacturing.
• Contract manufacturers share important information about things like patented ingredients, particle engineering, retail packaging trends, or regulatory challenges with supplement brand owners. This level of knowledge sharing doesn’t happen between a private label manufacturer and a brand.
• It is far easier to ensure quality and manufacturing standards when working with a contract manufacturer since the brand or buyer has complete control over the product. The product quality is dependent on the parameters and standards set by the brand, unlike in the case of private label manufacturing.
• One distinct disadvantage of private label manufacturing is that multiple companies might be selling the exact same product or line of products with their own branding.

From www.nutrasciencelabs.com