The rapid evolution of the global nutraceutical industry is supported by factors like increasing consumer awareness of preventive healthcare and functional nutrition.
According to Grand View Research, in 2023, the global nutraceuticals market size was valued at USD 505.6 billion, and it is expected to grow at a CAGR of 9.4%, in the timeframe 2024 through 2030.
Private labelling then creates a strategic model, entering into the spotlight as an enabler for all the new-age startups willing to quickly, cheaply, and smartly put science-backed wellness products on shelves.
But what does private labelling in nutraceuticals mean—and why is it becoming so vital to startup success?
Understanding Private Labelling in Nutraceuticals
Private labelling essentially entails a third-party manufacturer (often an R&D-driven CDMO) developing and manufacturing nutraceutical products of any kind—dietary supplements, herbal extracts, functional foods—for sale under a startup brand name.
For the startup, the process eliminates the need for research and development, manufacturing infrastructure, and regulatory setup, allowing for faster market entry and increased scalability.
Scientific and Strategic Benefits for Startups
- Faster Time-to-Market with Research-Backed Formulas
In an industry dominated by seasonal trends, influencer-based health hacks, and fluid consumer needs (like gut health, cognitive function, immunity), long product development cycles are becoming a liability for startups. Private label manufacturers have the wonderful advantage of having formulations designed and clinically tested so that brands may jump on these trends swiftly.
However, a report by Nutrition Business Journal in 2023 revealed that 63% of startups using private labelling products were launched in 4-6 months, whereas for in-house product development, it seems to take 12-18 months.
- Low Capital Investment & High Scalability
In outsourcing manufacture and formulation, startups stand to save up to 70% in upfront R&D and production costs, according to Deloitte’s Life Sciences Outlook; funds thus saved can go into customer acquisition, influencer collaborations, and digital brand-building.
And as the demand grows, the manufacturer will increase batch sizes without impacting the startup’s business model—allowing for operational agility and scalability.
- Personalized Backed by Science
Startups could still differentiate their products even if they used one-off standard formulations by customizing packaging, branding, delivery formats (capsules, sprays, powders), or by mixing trending ingredients.
Cutting-edge technologies in nutrigenomics and AI-based supplement recommendation engines are being integrated into a few private label platforms to allow brands to provide personalized nutrition based on DNA, lifestyle, or biometric data.
- Transparency and Clean Labels
Today, consumers ask for clean-label, traceable, and certified products. Most leading private label CDMOs aim to comply with global standards such as GMP, HACCP, NSF, and ISO.
Mintel later in the year 2023 released a report stating that 81% of consumers look at disclosing ingredient sourcing and third-party testing as adding to the trust of any wellness brand, regardless of whether third-party manufacturers label the product.
Emerging Trends Shaping the Future
AI in Manufacturing – At present, private label manufacturers use artificial intelligence to predict market trends, optimize formulations, and automate supply chains, allowing startups to gain insights into real-time production scalability and quality.
Eco-conscious Branding – Private label CDMOs swear in environmentally friendly ingredients, biodegradable packaging, and green production lines as their concerns for the environment grow.
Condition-Specific Solutions—Startups are launching focused solutions with niche applications in women’s hormonal health, senior cognition, child immunity, and so on—without setting up scientific teams from scratch.
Challenges to Consider
Nevertheless, come with a few drawbacks:
- Limited formulation flexibility – The only customization that can be applied is very likely to be flavoring, dose level, or delivery medium.
- Brand sameness – Because many brands acquire their products from the same manufacturers, it becomes difficult to create a positioning strategy for their brands unless spectacular marketing is put into place.
- Supply dependency – A manufacturer’s act of delayed production or shortage in ingredients can disrupt the sales channels.
- Strategic partnerships with research-driven CDMOs may help abate the concerns by offering exclusivity agreements, R&D cooperation, and flexible manufacturing contracts.
Zeon Lifesciences: Your Partner in Growth with the research based CDMO, Zeon helps nutraceutical startups with the complete end-to-end private labeling options that are: - Scientifically validated and tested based on clinical studies
- Manufactured in world-class, state-of-the-art globally certified facilities
- Scalable, traceable, and comply with international regulations
- Tailored to incoming trends of personalization, clean labeling, and high bioavailability
Whether you are making your first herbal product or scaling your second SKU for a whole wellness line, Zeon offers strategic support to build a future-ready nutraceutical brand.
Ready to Launch Your Brand? Let’s Talk.
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References:
Mattheiss, J. (2025, April 3). Contract Manufacturing Vs. Private Label: Pros & Cons. Vitaquest. https://vitaquest.com/contract-manufacturing-vs-private-label-for-supplements/
Bliss, T. (2024b, September 30). Private label manufacturing in 2024: Key trends to watch. Bliss Lifesciences. https://www.blisslifesciences.com/private-label-manufacturing/
Private Label CBD Suppliers, Private Label CBD Manufacturers. (2024, April 14). How to Elevate Your Brand with Private Label Nutra. Emerald Nutra. https://www.emeraldnutra.com/how-to-elevate-your-brand-with-private-label-nutra/
U.S. Nutraceuticals Market Size | Industry Report, 2030. (n.d.). https://www.grandviewresearch.com/industry-analysis/us-nutraceuticals-market-report
“Good Health for All”
Zeon is serving with over three decades of experience in the industry, we are working meticulously to bring knowledge of nature with innovation and advanced technology in the form of unique combinations to our consumers. Our in-house formulae and manufactured products are for all age groups in various SKUs such as Powders, Diskettes, Tablets, Capsules, Oral liquids, Caplets, Sprays, Drops, Herbal Juices, etc.
WHY CHOOSE ZEON?
State-of-the-art manufacturing facility in Himachal Pradesh spread over 28000 sq yds
4 manufacturing units under integrated complex
Serving quality products since 1987
GMP certified facility
NSF Registered
DSIR- recognized R&D Lab
NABL Accredited Quality testing
USFDA Registered
Great place to work certified
Food safety award from CII
1200+ formulations
800+ Active SKUs
30+ Recognitions
15+ Accreditations
Exclusive diskette manufacturing facility
Exclusive spray drying and dry blended powders manufacturing facility
