As more consumers seek new ways to get healthier, nutraceutical products are more popular than ever before. To help meet rising demand without sacrificing quality, many brands are turning to reliable private label manufacturers to help them create new nutraceutical products at scale.
Private label nutraceutical products are unique supplement formulas manufactured by one company and marketed and sold by another under its own brand name. Because of their ability to let companies form their own unique branding, have control over pricing, and create greater profit margins, the interest in selling private label products is only increasing.
If you’re looking to build or expand your own nutraceutical line, this guide is for you. Today, we’ll be discussing how to take advantage of this trend and create a successful line of your own private label nutraceutical products.
Understanding the Nutraceutical Market
Nutraceuticals, also referred to as functional foods or dietary supplements, are products derived from food sources that provide extra health benefits beyond basic nutrition.
Over the past few years, the public’s interest in wellness and health-promoting products has significantly increased. Both millennials and older adults are more interested in improving their wellness than ever. In fact, the industry is expected to exceed $650 billion worldwide by 2026.
There are a few different categories of nutraceutical products to know about. The most common are vitamins, minerals, herbs, sports nutrition, meal replacements, and specialty supplements. Each one is designed to serve a specific purpose and can come in various mediums, including liquids, gummies, powder or softgel vitamins, and others.
Steps to Create a Private Label Nutraceutical Product Line
Market Research
In any industry, it’s important that you understand your customer needs, market trends, demand versus market saturation, and competitor offerings. This helps you to establish a unique, marketable product that caters to your target audience’s needs.
For example, is there a type of nutraceutical only offered by one or a small handful of other brands on the market at prices that seem out of reach for the average consumer? This might open an opportunity for you to create one of equal or better quality at a more affordable price point.
Product Selection
In order to create and maintain a strong brand, you need to select products for your line that match your target market and your brand’s value proposition. Make sure to openly communicate your specific needs with your manufacturing partner and determine the best path forward with formulation.
Take a moment and write down the non-negotiables for your product formulas. Do they need to be certified organic? Vegan? What are the must-have features that you need to include in your nutraceuticals? Deciding on this will help you not only identify new product opportunities, but it will also guide you toward finding the right supplement manufacturing partner to work with.
Manufacturer Selection
When choosing a manufacturer, do your due diligence to find a reliable company that you trust with your nutraceutical products. It’s about forming a sustainable, long-term relationship with a reliable partner, not business speed dating with the fastest or cheapest vendors.
As you’re reviewing options, look for a manufacturer with the following attributes:
- Longevity in the industry – how long have they been serving supplement and nutraceutical brands like yours?
- Certifications – third-party certifications establish objective credibility from authorities in the industry.
- Specialization – does the manufacturer specialize in certain types of products or media that are best suited for your production needs?
- Customization – are the formulas unique to your brand or do they just offer white-labeled, premade products that you attach your own label to?
- Distribution – how do your products arrive in your hands from their facility? Is their process compatible with your current operations?
You can also ask a potential manufacturer for other information like sample formulas, case studies, and proof of certifications to help you make a more informed decision. As we mentioned above, slow and steady in your selection process can result in a much more fruitful partnership with the right manufacturer.
Branding
Establishing a strong brand is key to any successful business. When creating a brand identity, make sure to have a name, logo, packaging design, and look that matches your company’s message and overall feel.
Pricing Strategy
When you’re determining the optimal pricing point for your nutraceutical products, there are a few factors that you need to take into account. These include production costs, competitor pricing, and the perceived value of the product. Considering all of these factors will allow you to make an informed decision and establish a profitable, competitive price that’s more likely to sell.
As the brand selling the products, you will need to create a markup price on top of the dollar amount you’ve invested in production and distribution. While many brands will implement a 40 to 50% markup on top of their initial costs, you may also want to consider consulting with an accountant to help you determine the right margin to remain consistently profitable.
Marketing and Distribution Strategy
Any successful product launch includes a detailed marketing plan and distribution strategy. Make sure to create a solid marketing plan that outlines each step of the marketing process, and choose the best distribution channels that will efficiently get your products in the hands of consumers. Doing so will help ensure your product launch is successful and stays consistent and profitable.
Formulating Your nutraceuticals
The Role of R&D
You may need to test multiple iterations of a nutraceutical product before deciding on the final formula that you want to move into mass production. Working with a manufacturing partner, you can ask them to send multiple variations of the same formula to test out yourself or with a product testing group to see which ones prove the most desirable.
Ingredient Sourcing
If you’re working with a private label manufacturer, communicate the types of ingredients that you want featured in your formula. For example, if you only sell 100% organic products, request that they only develop a formula for you using ingredients that meet these standards.
Manufacturing Processes
There are a few key phases in the manufacturing process that any nutraceutical company needs to follow. These include proper formulation, testing, production, and quality assurance. Carefully following and executing these steps will help ensure that you’re putting out the best possible product.
When working with a manufacturing partner, these steps are typically performed by their team on your behalf. This helps you both save time and avoid the high costs of hiring your own in-house team to fulfill these essential components of the process.
Packaging
Packaging serves more of a purpose than just a box for your product to arrive in. Make sure to select quality packaging that properly preserves the product while still communicating the brand’s values and benefits to the customer through the design.
On the label, do not forget to add essential information like expiration dates, ingredients, allergy information, dosage information, and instructions for safe consumption. These will help your ideal customers buy with greater confidence.
Add High-Quality Proprietary Nutraceutical Formulas to Your Product Line
Since 1981, Yellow Emperor has been a formulation and manufacturing partner of bespoke liquid supplement formulas for brands worldwide. With multiple certifications and over 40 years of experience, we’re able to create unique and highly tailored formulas to match your brand ethos with your customers’ wellness in mind.
If you’re interested in formulating liquid nutraceuticals for your own private label product line, get a quote from us today.
