What is Private Label?
A private label is a product (or line of products) a retailer or buyer sells under its own brand name but is made by a third-party manufacturer. Typically, a retailer or buyer controls the branding and marketing, while the manufacturer produces the goods according to their specifications. These products are often priced lower than name brands and offer unique options for consumers.
Commercial Hand Care Industry Impact
Consumers switching from national brands to regularly buying private label brands in the United States as of January 2022. Skin care is the 4th highest category at 18.8%.*
The increase trends across industries for private labeling have affected not only big box retailers, but specifically in commercial hand skin care. Since Covid 2020, commercial skin care companies have increasingly found cost effect savings in private labeling due to the increase in FDA regulatory audits. Partnering with a third-party manufacturer under private labeling can ensure quality formulation, customization, and expert recommendation without the fear of unexpected audit cost. Products range can include hand soap, hand sanitizer, hand cream, lotion, refills, and dispensers. From a consumer perspective, a 2023 study showed support of private label lines by giants like Target, positioning them as premium choices in the market. Overall, there’s been a steadfast commitment from consumers with the majority expressing their intent to continue and even increase their patronage of private label offerings according to The Food Industry Associations. These notable shifts from businesses opting for private label boils down to balancing cost-effectiveness with quality and sustainability as highlighted by Fairtrade International’s Projections and Fairtrade America. Below are noted factors influencing these trends.
Key Motivating Factors
- Differentiation in a competitive market with unique, exclusive products
- Control over product quality, price and branding
- Higher profit margins
Sales Growth Opportunity with Private Labeling
- Consistent brand presentation across all platforms increases revenue by up to 23 percent (Forbes.com)
- Around 59% of shoppers prefer to buy new products from brands familiar to them (Invespcro.com)
Kutol: The Leader in Private Label Commercial Skin Care
Amidst this landscape, Kutol emerges as a leader in private labeling offering both Contract Manufacturing Skin Care Products and Private Label Commercial Skin Care Products by leveraging decades of expertise as well as a commitment to excellence. With a substantial portion of the business dedicated to private labeling in their state-of-the-art facility, Kutol’s private label product line includes hand soaps, hand sanitizer, lotions, body washes all formulated to meet FDA regulatory standards while exemplifying sustainability through certifications like Green Seal® and USDA BioPreferred®. Kutol’s dedication to quality, sustainability and flexibility allows the company to meet the changing trends in industry.