Choosing between private label and white label products can be a pivotal decision for business owners and entrepreneurs. Both models offer unique advantages and challenges, so understanding the key differences can help you determine which is right for your brand.
In this guide, we’ll break down each model, compare their pros and cons, and provide insights into launching a product under each type.
What Is Private Label?
Private label products are manufactured by a third-party supplier but are sold under your brand name. In this model, you have full control over the branding, packaging, and marketing. The supplier produces the products according to your specifications, often allowing for significant customization in terms of design, quality, and features.
For example, olive oil manufacturers offer private label olive oils that brands can customize everything from the logo to the packaging and even the product formulation or features. While the supplier manufactures the product, your brand takes full ownership and responsibility for its sale and marketing.
Private label is widely used in industries like food and beverage, cosmetics, supplements, health and wellness products, and clothing. Successful private label brands in the UK include Tesco’s Finest or Aldi’s Specially Selected.
Pros:
Brand Control: You have full control over the branding, packaging, and customer experience.
Higher Margins: Private label products generally have higher profit margins than white label products because you can set your price point and differentiate your brand.
Exclusivity: The product is unique to your brand, allowing you to build brand loyalty and customer trust.
Cons:
Higher Upfront Costs: Developing a private label brand involves more upfront costs, including product development, testing, and branding.
More Time-Consuming: From finding suppliers to customizing your products, the process can take longer compared to white label.
Risk: Since you’re creating your own brand, the risk is higher if the product doesn’t resonate with customers.
How Much Does It Cost to Create a Private Label Brand?
The cost of creating a private label brand depends on the product type, the supplier, and the level of customization. Typically, you can expect costs in the range of £2,000 to £10,000 for product development, packaging design, and initial orders. For high-end or custom products, costs can increase significantly.
How Long Does It Take to Launch a Private Label Product?
On average, it takes around 3-6 months to launch a private label product. This includes sourcing suppliers, negotiating contracts, designing the product and packaging, testing, and final production. While the process can be streamlined, it still requires time for quality control and adjustments.
What Is White Label?
White label products are generic goods produced by a manufacturer but sold under different brand names. Unlike private label, there is no customization or brand exclusivity; the product is essentially the same as other brands selling it. White label products are usually sold in bulk, with multiple resellers putting their own branding on them.
White label products are typically off-the-shelf goods that you can brand and resell without making any modifications. The product is produced in bulk and can be sold by multiple companies. This means there’s no exclusivity or differentiation between brands using the same white label product.
White label products are common in industries such as software, electronics, cosmetics, personal care, and dropshipping. For example, many tech companies sell the same white-label headphones or mobile accessories but brand them differently.
Pros:
Low Start-up Costs: White label products typically cost less to start since there’s no need for product development or custom features.
Faster to Market: Because the products are already made and ready to sell, you can launch your brand quickly.
Scalability: White label products are easier to scale due to their low cost and fast turnaround time.
Cons:
Lack of Differentiation: Since the product is sold by multiple brands, it’s difficult to stand out in a crowded marketplace.
Lower Margins: Without the ability to fully customize or control the product, white label products often have lower profit margins.
Less Control: Since the product isn’t unique to your brand, you’re limited in terms of control over quality or customer experience.
How Much Does It Cost to Create a White Label Brand?
White label brands typically require a much smaller initial investment. Depending on the product, you can expect to spend anywhere from £500 to £5,000 to create a white label brand, which mainly covers the cost of branding, packaging, and the wholesale cost of the products.
How Long Does It Take to Launch a White Label Product?
White label products are much faster to launch than private label ones. On average, it takes 1-3 months to find a supplier, place an order, and start selling the product with your branding.
Key Differences Between Private Label and White Label
The key differences between private label and white label products are:
Customization: Private label products are customized to your brand’s specifications, while white label products are generic and sold under various brands without changes.
Control: Private label offers full control over branding, packaging, and marketing; white label offers limited control.
Exclusivity: Private label is exclusive to your brand, whereas white label products are sold by multiple brands.
Cost: Private label involves higher upfront costs and longer development, while white label is quicker and less expensive to launch.
Is Private Label More Profitable Than White Label?
Private label products tend to be more profitable. With private label, you can control pricing, branding, and positioning, allowing for higher margins. White label products, on the other hand, have lower margins since you’re selling the same generic product as other companies.
What Are the Best Private Label Product Categories in 2025?
In 2025, the private label industry is evolving rapidly, driven by changing consumer preferences, sustainability trends, and technological advancements. Here are some of the best private label product categories to consider:
Health and Wellness: Nutritional supplements, organic food products, and fitness items.
Sustainability: Eco-friendly household items, biodegradable packaging, and natural personal care.
Plant-Based Foods: Vegan alternatives, functional foods, and convenience meals.
Pet Products: High-quality pet food, sustainable accessories, and eco-friendly products.
Home and Kitchen: Smart home devices, cookware, and home organization products.
Fashion and Apparel: Sustainable fashion, activewear, and customizable clothing.
Baby and Maternity: Organic baby food, eco-friendly diapers, and maternity wear.
Tech Accessories: Wireless chargers, wearable tech, and phone accessories.
Beverages: Functional drinks, non-alcoholic beverages, and premium coffees.
Personalized Products: Custom gifts and subscription boxes.
How to Find White Label & Private Label Suppliers in the UK?
Finding white label and private label suppliers in the UK involves a few key strategies. Here’s how to go about it:
Sourcing Platforms
Torg is an excellent AI-powered sourcing platform that simplifies the process of finding reliable white label and private label suppliers. By utilizing advanced AI technology, Torg matches your requests to suitable suppliers, streamlining the sourcing process. Torg connects buyers with vetted manufacturers, offering a more efficient way to discover suppliers than traditional methods. The platform provides easy-to-navigate listings and detailed supplier profiles, helping you make informed decisions quickly.
Industry Trade Shows and Exhibitions
Attending events like the UK Private Label Manufacturers Expo (PLME), International Food & Drink Event (IFE), or Pure London allows you to meet suppliers directly. These trade shows are great opportunities to discover private label manufacturers, understand market trends, and establish valuable connections with potential suppliers in person.
Local Business Networks and Chambers of Commerce
Local networks like the Federation of Small Businesses (FSB) and the British Chambers of Commerce connect businesses with suppliers in various sectors. These organizations can help you find reputable private label manufacturers, offering a trusted network for small businesses looking for reliable, UK-based production partners.
Conclusion
Choosing between private label and white label depends on your budget, desired control, and branding goals. Private label offers higher margins and brand control but requires more investment and time. White label is faster and cheaper but lacks differentiation. Consider your needs to make the best choice.
Read more:
Private Label vs. White Label: Find Out What’s Best
