One of the most consequential decisions a supplement brand makes is whether to go white label or private label. Both paths can build a successful business — but they serve fundamentally different strategic goals, require different levels of investment, and carry different risks. This guide cuts through the confusion.
One of the most consequential decisions a supplement brand makes is whether to go white label or private label. Both paths can build a successful business — but they serve fundamentally different strategic goals, require different levels of investment, and carry different risks. Understanding the distinction clearly — and knowing which fits your brand's stage and ambitions — is the foundation of a sound manufacturing strategy.
Defining the Terms
White label means you take an existing, pre-formulated product from a manufacturer and sell it under your own brand name. The formula is the manufacturer's intellectual property and may be sold to multiple brands simultaneously. Private label means you commission the development of a unique formula that is manufactured exclusively for your brand — you own the intellectual property, and no other brand can sell the same product.
| Factor | White Label | Private Label |
|---|---|---|
| Formula ownership | Manufacturer's IP | Your IP |
| Exclusivity | Non-exclusive (shared formula) | Fully exclusive |
| Time to market | 4–6 weeks | 12–20 weeks |
| R&D cost | None | €2,000–€15,000+ |
| Minimum order quantity | Low (from 100–500 units) | Higher (typically 1,000+ units) |
| Differentiation potential | Low–Medium | High |
| Regulatory documentation | Provided by manufacturer | Developed collaboratively |
| Best for | New brands, market testing, fast launch | Established brands, premium positioning, long-term IP |
When White Label Makes Strategic Sense
White label is not a compromise — it is a deliberate strategic choice that makes sense in several scenarios. If you are entering the mushroom supplement market for the first time and want to validate demand before committing to significant R&D investment, white label allows you to launch a credible, tested product in weeks rather than months. The formula has already been validated for stability, taste, and efficacy, and the regulatory groundwork is done.
White label is also the right choice when your competitive advantage lies in distribution, marketing, or community rather than in the product formulation itself. Many of the most successful supplement brands in Europe built their initial market position on white label products, using the capital saved on R&D to invest in brand building and customer acquisition — then transitioned to private label once they had the volume and market intelligence to justify custom formulation.
When Private Label is the Right Investment
Private label becomes the right choice when your brand's differentiation strategy is product-led. If you have identified a specific consumer need that existing formulas do not address — a particular mushroom combination, a unique delivery format, a specific potency level, or a novel ingredient pairing — private label is the only way to bring that vision to market.
- You have validated demand and are ready to scale with a defensible product
- Your brand positioning is built on product uniqueness or clinical-grade efficacy
- You are targeting a specific consumer segment with unmet needs (e.g., professional athletes, oncology support, high-performance executives)
- You want to build long-term IP value that can be licensed, sold, or used as a competitive moat
- You have the volume to justify the higher MOQ and R&D investment
The Hybrid Approach: A Practical Path Forward
The most pragmatic strategy for many brands is a phased hybrid approach: launch with white label to generate revenue and market intelligence, then invest those learnings into a private label formula that addresses the specific gaps or opportunities you have identified. This approach de-risks the private label investment significantly — you are formulating based on real customer data rather than assumptions.
"The question is not 'which is better?' — it is 'which is right for where my brand is today, and where I want it to be in three years?' Both paths can lead to the same destination; the difference is the route and the timeline."
At FUNGY, we support both paths with equal commitment. Our white label catalogue includes over 50 tested formulations across all major product formats, with low MOQs designed for market entry. Our private label programme includes full R&D support, regulatory documentation, and pilot production runs from as few as 500 units — making custom formulation accessible to brands at earlier stages than is typical in the industry.
Ready to Start Your Mushroom Product Line?
Contact our B2B team to request samples, discuss formulations, or get a manufacturing quote.
