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Private Label Supplement Manufacturers Continue to Enjoy Success

Last updated: April-14,2020

Private Label Supplement Manufacturers Continue to Enjoy Success

Not many good things have come out of the economic downturn, but private label manufacturing is certainly one of them. Faced with tighter budgets and a failing economy, consumers started buying privately labeled products in an effort to economize. Store brands such as Target and Trader Joe's are showing us that you can achieve a high degree of success by launching a private label brand provided you show the same degree of dedication to research, development and the manufacturing of your private labels as national brand manufacturers do. Smart supplement business owners will find that a high-quality privately labeled product, combined with a well thought out marketing campaign, may potentially take your profit margins to heights you may never have anticipated!

Consumer Interest in Private Label Nutraceuticals Continues To Increase

The Ipsos Marketing (an independent global research company with offices in 67 countries) online survey based on 21,623 responses, aged 18 and older, from 23 countries indicates that private labels are establishing their own niche in the market, offering consumers value-for-money buying power, giving leading national brands some tough competition. In fact, because of the excellent reputation that private label manufacturing has earned for itself, more than 50 percent of buyers have switched loyalties from leading brands to private labels, according to a market research survey conducted by Ipsos Marketing. According to this global survey conducted from November 2009 to January 2010, more than 80 percent of those who use private label products consider the range of benefits derived from them to be just as good, if not better, than store brands. 1 According to the survey, taste, convenience, trustworthiness, and being environmentally friendly are just a few reasons why private labels are outshining national leading brands. 2

But is the private label industry here to stay? Industry experts believe that as long as private labels provide consumers with a satisfying brand experience, there is no reason for consumers to go back to more expensive national brands. These trends are substantiated by the 2010 Nielsen (a global market research firm) worldwide online survey of more than 27,000 respondents spanning 53 countries. Of the 50 percent of respondents who said they purchased private label nutraceuticals during the economic downturn, a whopping 91 percent of them said they would continue purchasing them despite improvements in the economy. 3 Nielsen also reported that in the last six months of 2008, unit sales of private-label items grew 4 percent. 4 Three years later, in spite of an improving economy and increased promotion from leading brands, private labels have been able to hold their position.

Popular Supplements To Private Label

Retailers, particularly in the mass market segment, are producing their own line of private labels (PL) which, in the past, consisted of basic supplements such as vitamins and minerals. Today, retailers are competing with their own private label brands of bone formulas and herbal extracts. According to a senior analyst in Mintel International Group, a market research company based in Chicago, IL, David Brown, "Retailers also are making it easier to compare the PL's to the name brands as well." Mintel's September 2009 report states that retail sales of PL supplements increased significantly in the 52-weeks ending June 14, 2009 indicating that consumers, feeling the pinch of an ailing economy, decided to tighten their household budgets by switching to private labels as a means to stay healthy. Private label sales grew by more than 9 percent in 2009 ($733 million) fetching 26 percent share of the total supplement market. 5

Supplements that make a health claim are reported by Mintel to carry more weight and generally attract more consumer interest as do supplements that consumers may consider "safe" to use because they contain ingredients that can be easily recognized, such as multi-vitamins, minerals, calcium. Supplements that address unique dietary needs and help address condition-specific health concerns are also more likely to attract greater success at the market, according to Mintel. 6

If you're thinking of selling your own private label supplements and/or private label vitamins, contact a private label manufacturer who not only can help you produce well-formulated supplements, but also enhance the marketability of your products through eye-catching product and label designs.

Will Demand and Sales For Private Label Nutraceuticals Continue to Rise?

In May 2010, a consumer survey conducted by AC Nielsen showed that private label sales were being driven more by the higher-income strata of society than budget-minded consumers. This interesting fact suggests that private label trends are likely to continue in spite of a stable economy. 7

According to Nielsen's Senior Vice President of Consumer & Shopper Insights, Todd Hale, "Store brands have reached a new share plateau and will see continued long-term growth fueled by both continued consumer interest in value and retailer focus to drive margin and build banner equity." 8

We are in the midst of an exciting era for private label manufacturing. Because of a declining economy more people have tried private label products than ever before. Retailers and supplement business owners can take advantage of such a time as this by getting in touch with a private label vitamin manufacturer to discuss manufacturing options.

Tips for How You Can Make Your Private Label Supplements Line Stand Out From The Competition

  • Develop multiple brands offering consumers a variety of supplements that meet a range of consumer needs include value and premier products. Differentiate those brands and advertise their unique benefits at every point of sale.
  • Innovation - consumers are always looking for something new that attracts interest such as a combination of well-researched herbs and nutrients that support specific health concerns. Study your clientele and anticipate what will work.
  • Partner with a high-quality private label supplement manufacturer who has a good track record for GMP-certified manufacturing and can make meaningful suggestions.


1. http://www.ipsos-na.com/dl/pdf/knowledge-ideas/marketing/IpsosMarketing_GCV-Store_Brands_vs_Natl_Brands.pdf

2. Ibid.

3. http://www.nielsen.com/us/en/insights/news/2011/global-private-label-report-the-rise-of-the-value-conscious-shopper.html

4. http://www.nielsen.com/us/en/insights/news/2009/consumers-cut-back-retail-sales-change-as-value-trumps-all.html

5. Nutraceuticals World, July 29, 2010,

6. Ibid.

7. Food Navigator-USA, May 10, 2010

8. Straight Talk, Todd Hale, November 2010

June 11th, 2011

About the Author:

Vincent Tricarico

Vincent Tricarico is currently the Vice President of Contract Manufacturing at NutraScience Labs. With nearly 20 years of direct-to-consumer and business-to-business experience, Mr. Tricarico is a respected executive in the dietary supplement industry and is well-known for his ability to consistently build and grow successful teams that produce results. Over the years, his work has been published in many industry trade publications, such as Natural Products Insider, Nutritional Outlook, and WholeFoods Magazine.