A very large number of nutraceutical brands that you see in the market today are sourced from private label supplement manufacturing companies. These companies have chosen to work with specialized marketing businesses that own established brands. As well as new entrants who need counseling and guidance in brand building and market outreach. These manufacturers generally price their products economically in order to allow their marketing partners enough room to maneuver. They are trying to get a foothold in a market dominated by the traditional big names that not just own the brands. They sell but also manufacture them.
Offers great flexibility in partnering
The best private label supplement manufacturers understand their priorities very well. They have chosen to allow their products to be marketed under the different brands of marketing partner companies. At the same time, they also supply their formulations to manufacturers of certain nutraceuticals.
On the other hand if you have the formulation of a highly effective product that has not been manufactured yet, try a reliable private label manufacturing company. Of course, you must work out the agreement safeguarding your formulation. The manufacturer will charge a price for use of their facility and add some reasonable markup.
Focus on quality and innovation
One may ask why would any of the quality supplement manufacturers operate in this manner? They can easily own the branding of such products and take advantage of the brand value. Well, the dietary and cosmetic supplements market is extremely competitive and the big brands are difficult to compete against unless you have scale.
The biggest advantage of these manufacturers is that they produce organic nutraceuticals which have high latent demand. The traditional big brands continue to promote and push their antiquated chemical-based products that. Many customers avoid while many others use them since they don’t have a choice. When they find affordably priced organic products on the shelves, they lap them up.
Gives branding rights to marketing partners
A private label supplements manufacturer simply focuses on high quality product development and leaves the branding and marketing rights to multiple channel partners. These partner companies operate aggressively in their respective geographical locations. Their combined sales thereby become the aggregate sales of the manufacturer, which is substantial.
In this manner, they can reach a larger market with scale and make a dent in the market share of the big players. They still have a long way to go as they need to sustain their competitiveness and also add heft to their productivity. There will be a blowback from the market leaders at some point and they need to be able to tackle that with more and more marketing partners.
A private label supplement manufacturer is the new definition of market decentralization. Which is definitely an improvement in the current zero sum game market where new entrants cannot compete. This new system of manufacturing has disrupted the monopoly of a few big players. Where many smaller players with far better organic products found it difficult to compete. Today, consumers are a lot more knowledgeable about wellness compatible products and they also know. That nature-based organic dietary and cosmetic supplements are best for their bodies.