What is Private Label Manufacturing?
Private label manufacturing is when a product is manufactured by one company but marketed and sold under another brand name. Companies can then market and label these ‘stock products’ with their unique branding.
Working with a private label manufacturer is highly recommended when starting a new essential oil business.
What are the Benefits of Private Labeling Essential Oils?
Many essential oil manufacturers offer private labeling programs to help small businesses build their own line of branded essential oils. These companies offer guidance, industry knowledge and safety assessments that help small businesses market and sell safe essential oil products. Below are some of the top benefits of using a private label manufacturer to get your essential oil business up and running.
Lower Start Up Costs
Private label manufacturing offers emerging companies a chance to produce a high-quality product, with reduced startup costs. Many manufacturers offer a full range of services including research and development teams, marketing consulting, quality control and industry experience. These factors often lead to quick turnaround times and help support successful product lines.
Essential oil manufacturers are well-informed about industry standards, regulations and competitor products. Manufacturers may be members of trade or industry associations such as the National Association for Holistic Aromatherapy (NAHA) and tend to be very knowledgeable about FDA label and cosmetic regulations.
Access to High Quality Essential Oils
With international suppliers, product testing and quality standards, private label manufacturers offer access to high quality essential oils. Manufacturers will often provide a diverse range of single or blended oils to choose from. Some manufacturers also provide USDA certified organic essential oils.
Affordable Unit Costs
Private label manufactures produce large quantities of products for multiple companies at a time. This allows smaller businesses to purchase smaller quantities at lower unit costs.
Do I Need a License or Pre Market Approval to Sell Essential Oils?
In the United States, individual sellers are not required to be a licensed aromatherapist to sell essential oils. In most cases, pre-market FDA approval is not required for the sale of essential oil products in the United States. However, if the product carries medicinal claims, it would require FDA approval before it could be sold to customers.
In Canada, essential oils are regulated as Natural Health Products. Before selling essential oils in Canada, a product license from Health Canada is required.