Private Label vs Custom Formulation: Which is Right for Your Brand
Paths to launching your supplement brand. Here's how to decide which one fits your situation.
11/10/20255 min read
Introduction
You've decided to launch a gummy supplement brand. Now comes the first big decision: do you use a ready-made formula or create your own?
Both options work. Successful brands have been built on each. The right choice depends on your goals, budget, timeline, and how differentiated you need to be.
This guide breaks down both approaches honestly - costs, timelines, pros, cons, and when each makes sense.
What is Private Label?
Private label means you choose from existing, pre-developed formulas that the manufacturer already produces. You add your brand name, design your label, and sell it as your own product.
The formula isn't unique to you. Other brands might sell the same formula with different packaging. But the product is proven, tested, and ready to manufacture.
Example: You want to sell Vitamin D gummies. The manufacturer has a Vitamin D formula they've made hundreds of times. You pick it, choose your bottle and label design, and receive finished products with your brand on them.
What is Custom Formulation?
Custom formulation means you develop a unique formula specifically for your brand. You decide the exact ingredients, dosages, flavors, and specifications. The manufacturer creates it to your requirements.
The formula belongs to you. No other brand sells exactly the same product.
Example: You want a sleep gummy with a specific combination of melatonin, magnesium, and ashwagandha at exact dosages you've researched. The manufacturer's team works with you to develop, test, and produce this unique formula.
Private Label: The Full Picture
How it works:
Browse manufacturer's formula catalog
Select a product that fits your market
Choose options (flavor, vegan, sugar-free, etc.)
Design your label and packaging
Receive samples for approval
Place your order
Receive finished products
Timeline: 3-6 weeks typical
Costs:
No development fees
Lower MOQs usually available
Per-unit cost depends on formula and volume
Main investment: inventory + packaging design
What you control:
Brand name and positioning
Label and packaging design
Flavor selection (from available options)
Bottle type and size
Marketing and pricing
What you don't control:
Exact ingredient dosages
Specific ingredient sources
Unique combinations
Formula exclusivity
Custom Formulation: The Full Picture
How it works:
Share your product concept with manufacturer
Discuss ingredients, dosages, target benefits
Formulation team develops initial formula
Review and adjust based on samples
Finalize formula and packaging
Production begins
Receive finished products
Timeline: 8-16 weeks typical (includes development and sampling)
Costs:
Development fees (varies by complexity)
Sample iterations
Higher MOQs often required
Per-unit cost may be higher initially
Investment: development + inventory + packaging
What you control:
Exact ingredients and dosages
Unique combinations
Flavor profile development
Formula exclusivity (if agreed)
Specific certifications or claims
What you don't control:
What's physically possible in gummy format
Regulatory limits on certain ingredients
Stability and shelf-life requirements
When Private Label Makes Sense
You're launching your first product
You don't know yet what sells. Private label lets you test the market with lower risk. Learn what your customers actually want before investing in custom development.
Speed matters
A trend is happening now. A competitor just launched. You have a marketing window. Private label gets you to market in weeks, not months.
Budget is tight
You have €10,000-15,000 to start. Private label lets you put more into inventory and marketing rather than development fees.
You're entering a proven category
Vitamin C, Vitamin D, multivitamins - customers know what these are. They buy based on brand trust and price, not unique formulations. A private label product competes fine here.
You want to validate before customizing
Start with private label. Get sales. Get feedback. Then develop custom formulas for your second or third product based on real data.
Your differentiation is brand, not formula
Some brands win on marketing, story, design, and customer experience - not unique ingredients. If that's your strategy, private label works.
When Custom Formulation Makes Sense
You have a specific product vision
You've researched a combination that doesn't exist in the market. You know exactly what you want. Private label catalogs don't offer it.
Differentiation is critical
You're entering a crowded market where dozens of brands sell similar products. A unique formula gives you something competitors can't copy.
You're targeting a specific niche
A formula designed for menopausal women. A sleep gummy optimized for shift workers. A sports recovery blend for triathletes. Specific needs require specific formulas.
You have existing customers asking for something
Your audience has told you what they want. You have data. Custom formulation delivers exactly that.
You're building a premium brand
Higher prices require justification. Proprietary formulas, unique ingredient combinations, and clinical dosages support premium positioning.
You've already validated with private label
Your private label product sells well. Now you want to improve it, make it exclusive, and build more defensibility. Custom formulation is the next step.
Common Mistakes to Avoid
Starting with custom when you should start private label
First-time founders often want a unique product. They spend €20,000+ on custom development before knowing if anyone will buy it. The product launches, doesn't sell, and they're out of money.
Start simpler. Validate first.
Assuming private label means low quality
Private label formulas are often the same or better quality than custom ones. They're proven, optimized, and manufactured repeatedly. The manufacturer knows how to make them well.
Quality comes from the manufacturer, not whether the formula is custom.
Underestimating custom formulation complexity
"I just want to add one ingredient" can mean months of stability testing, reformulation, and sampling. Gummy format has limitations. Some combinations don't work.
Listen to your formulation team. They know what's realistic.
Choosing custom for ego, not strategy
"My product needs to be unique" sometimes comes from founder ego, not market research. Ask yourself: will customers actually pay more for this difference? Will they even notice?
If the answer is unclear, start private label.
Ignoring the real costs of custom
Development fees are just the beginning. Add sample iterations, higher MOQs, longer timelines, and opportunity cost of delayed launch. Custom formulation often costs 3-5x more than founders expect when they account for everything.
The Hybrid Approach
You don't have to choose one forever. Many successful brands use both.
Strategy 1: Start private label, go custom later
Launch with proven formulas. Generate revenue. Learn your market. Then develop custom formulas for hero products while keeping private label for standard products.
Strategy 2: Custom hero product, private label supporting products
Your main product is unique and custom. Supporting products (basic vitamins, simple formulas) are private label. Balances differentiation with efficiency.
Strategy 3: Modified private label
Some manufacturers allow modifications to existing formulas - adjust a dosage, change a flavor, add one ingredient. Not fully custom, but more differentiated than standard private label.
Ask your manufacturer what's possible.
Questions to Ask Yourself
Before deciding, answer honestly:
Do I know for certain what my customers want?
How much can I invest before seeing any revenue?
How fast do I need to launch?
Is my differentiation in the formula or in branding/marketing?
Am I solving a problem that existing formulas don't address?
What happens if my first product doesn't sell?
Can I afford to wait 3-4 months longer for custom development?
If you answered "no" or "I don't know" to most of these, private label is likely your better starting point.
What Gumio Offers
Private Label
Ready-to-brand gummy formulations across all major categories - vitamins, immunity, sleep, beauty, energy, kids, and more. Low MOQs, fast production, your brand.
Browse our formula library, choose what fits your market, and launch in weeks.
Custom Formulation
Have a unique idea? Our team works with you to develop it. We handle ingredient sourcing, formulation development, sampling, and production.
Tell us what you want to create. We'll tell you what's possible and how to get there.
Not sure which?
Talk to us. We'll ask about your goals, timeline, and budget - then recommend the path that makes sense for your situation. Sometimes that's private label. Sometimes custom. Sometimes a combination.
We'd rather you succeed with the right approach than sell you something that doesn't fit.
Conclusion
Private label and custom formulation are both valid paths. Neither is better - they're better for different situations.
Private label: faster, cheaper, lower risk, less differentiation. Custom formulation: slower, more expensive, higher risk, more differentiation.
Most first-time founders should start with private label. Test the market. Generate revenue. Learn. Then invest in custom development when you have data and cash flow to support it.
The brands that succeed aren't the ones with the most unique formulas. They're the ones that launched, learned, and kept improving.
Start where it makes sense. Evolve from there.
Ready to Decide?
Tell us what you're thinking. We'll help you figure out the right approach.
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