Walk down any supermarket aisle in the United States and a growing share of what you see carries the retailer's own name. Somebody makes those products. Very often, that somebody is a food producer or manufacturer who decided that supplying private label was a better way to grow than building a consumer brand from nothing.
If you make food and have ever been asked whether you can "do it under our label", this guide is for you. It explains what private label is, how big the opportunity is in the United States and Europe, why it can be a strong strategy for producers and manufacturers, where it can go wrong, what to put in a contract, and what the US rules mean when your product carries someone else's name. It is written for food producers, contract manufacturers and brand owners considering the US market, and it is practical rather than promotional.
This is general information, not legal advice. Food rules change and depend on the product, so confirm specifics with the FDA or a qualified adviser before you commit to a contract or a shipment.
What is private label?
Private label, also called store brand, own brand or private brand, describes a product that is made by one company and sold under another company's brand. The business whose name is on the pack decides what the product is, how it is positioned and where it is sold. A manufacturer makes it to that specification.
The brand owner is often a retailer, but not always. Restaurant groups, coffee chains, hotels, airlines and airline caterers, foodservice distributors and wholesalers all run private label ranges. The manufacturer's role is the same in each case: produce to specification, consistently, at an agreed price and volume.
Two terms are often confused with it. White label usually means a standard product that several buyers can brand as their own with minimal changes. Contract manufacturing, sometimes called co manufacturing or co packing, describes the production arrangement itself. Many private label programmes use contract manufacturing, but a manufacturer can also supply private label from its own recipes.
How big is private label?
Private label is not a niche. Two sets of figures show how large the market is.
United States. According to PLMA's 2026 Private Label Report, based on Circana data, store brand dollar sales reached a record $282.8 billion in 2025, up 3.3% on the year, while national brands grew 1.2%. Store brands took a record 21.3% of dollar sales and 23.5% of unit sales. Circana data cited by PLMA in 2026 shows unit share rising further, to about 24%. The price gap matters to shoppers: in the first quarter of 2026, PLMA reported that the average store brand unit cost 17% less than the national brand equivalent.
Europe. PLMA and NielsenIQ data for 17 European countries shows private label at 38.7% of value, worth €384 billion, in the year to week 40 of 2025. Twelve markets had a private label share above 30% and eight were above 40%. Switzerland was the only country above 50%, at 52.3%, and Germany, the United Kingdom and France together stood at 40.3%.
A few details are especially useful for food producers. In the early months of 2026, some of the fastest growing store brand categories in the US were refrigerated and frozen side dishes (up 9.7% in dollars) and refrigerated and frozen desserts (up 8.3%). Circana research also reports that younger shoppers, in particular Generation Z, increasingly see private label as a higher quality alternative to name brands, not only a cheaper one. Retailers are responding with premium and wellness oriented ranges, which is good news for producers with a quality story to tell.
The takeaway is simple. Private label is mature in Europe and still growing in the US, which means European producers that already know how to supply private label at home have a skill the US market values.
Why private label works for producers and manufacturers
1. It gives you volume, and volume makes a factory more efficient
A food factory costs a lot to run whether it is busy or not. Private label contracts, once won, tend to be for larger and more regular volumes than a small brand sells on its own. That helps you use capacity that would otherwise sit idle, spread fixed costs across more units and plan production, ingredients and staff with more confidence.
2. You can reach buyers without paying to build a brand
Building a consumer brand is expensive and slow. You need design, marketing, listing fees, promotions and months or years of patience before sales justify it. A private label supplier skips most of that spending: the retailer or brand owner carries the marketing and the relationship with the shopper, and you carry the product. For a small or mid sized producer, that is often the difference between entering the US market and never doing so.
3. It gives you a foothold in a new market
The US is a large, fragmented, highly regulated market. Winning one buyer who already has distribution, warehouse and retail relationships can teach you more than a year of cold outreach. You learn the paperwork, the pace, the packaging expectations and the price points with a partner who is invested in the product succeeding. Many producers then use that experience to launch or expand their own brand later.
4. It diversifies your sales
If most of your revenue comes from one country, one channel or one customer, you are exposed. Private label can add a second channel, such as US retail or foodservice, next to your existing business. Supplying several buyers in different segments reduces the damage if one of them reduces orders.
5. It can open the door to premium and specialised ranges
Retailers no longer only want the cheapest version of a product. Premium, organic, regional and "free from" ranges are a growing part of store brand strategy. If you make a product with a real quality or origin story, such as French pastry, Italian pasta, Spanish olive oil or Belgian chocolate, private label premium tiers can reward that quality without you building the brand around it.
6. It is a way to learn what the market wants
Private label buyers have a lot of data on shopper behaviour. Working with them, you see what sells, what formats work, where prices sit and what is missing from the shelf. That is valuable product development information that most small producers never get.
The risks, and how to handle them
Private label works for many producers, but it is not free of trade offs, and any honest guide has to say so.
Margin pressure. Large buyers are good at negotiating. Because the buyer controls the brand and can often move to another supplier, you may face constant pressure on price. The answer is to know your costs precisely, price in ingredient and energy swings with clear adjustment clauses, and avoid contracts that leave you no margin if an input rises.
Customer concentration. If one buyer accounts for most of your volume, losing them can be severe. Decide in advance how much of your revenue any one customer can represent, and set it at a level you could survive losing. Build your pipeline before you need it, and keep your own brand or other customers alive in parallel.
Weak ownership of the recipe. If the buyer provides the formulation, they usually own it. If you provide it, the contract needs to say who owns what and whether the buyer can take your recipe to another manufacturer. Many producers only discover this problem at renewal.
Quality and audit demands. Retailers expect consistent quality, traceability and, very often, food safety certification recognised by the Global Food Safety Initiative, such as BRCGS, SQF or IFS. Audits can be frequent, and failure can end a contract. Budget the time and cost of keeping certifications current.
Packaging and label costs. Each buyer has its own artwork, pack sizes and specifications. Short runs of custom packaging, minimum order quantities and changes to artwork add cost that must be built into the price.
Brand dependence. If the buyer's brand is weak or the buyer's strategy changes, your volume can fall for reasons outside your control.
None of these risks is a reason to avoid private label. They are reasons to go in with clear numbers, a diverse customer base and a good contract.
Private label or your own brand?
It is rarely an either or decision. This comparison sets out the main differences.
Who owns the brand: Private label: The buyer; Own brand: You
Marketing and listing cost: Private label: Mostly the buyer; Own brand: Mostly you
Volume: Private label: Larger, steadier once won; Own brand: Builds slowly
Margin per unit: Private label: Usually lower; Own brand: Potentially higher
Control over price and positioning: Private label: Limited; Own brand: Full
Speed to enter a new market: Private label: Often faster; Own brand: Often slower
Dependence on a few customers: Private label: Higher; Own brand: Lower once established
Many successful producers run both: private label for volume and cash flow, their own brand for margin and long term value. The right balance depends on your capacity, cash and ambitions.
What buyers look for in a private label supplier
If you want to sell private label in the United States, expect questions on the following.
Food safety certification and a clean audit history. A GFSI benchmarked certificate is often the starting point.
Consistency. Buyers want the same product every time, with specifications and quality checks to prove it.
Capacity and reliability. Can you supply the volume, on time, through seasonal peaks, and what is your backup if a line goes down?
Cost transparency. A clear cost model, including ingredients, packaging, labour, energy and freight, builds trust and speeds up negotiation.
Traceability and recall readiness. Can you trace each batch back to ingredients and forward to customers quickly?
Regulatory readiness for the US. FDA registration, FSVP support, US compliant labelling and documentation.
Product fit. Does your product fill a gap in the buyer's range, or is it another version of something they already have?
Preparing a short, professional supplier pack, with your certifications, capacity, product specifications, samples and indicative pricing, makes it far easier to get a meeting. If you plan to meet buyers in person, our guide to food trade shows in Europe and what a trade show representative does explains how to make events pay off.
What the contract should cover
A private label agreement decides who carries which risk. Take advice before signing, and make sure these points are covered clearly.
Specification: Recipe or formulation, ingredients, quality standards, and how changes are agreed
Ownership: Who owns the recipe, packaging design and any intellectual property
Volumes and forecasts: Minimum and maximum volumes, forecast process, lead times
Pricing: Price, how it adjusts for ingredient, packaging, energy and currency changes, and when
Packaging: Who buys packaging, minimum runs, and who pays for obsolete stock if the buyer changes artwork or leaves
Quality and audits: Required certifications, audit rights, how complaints and recalls are handled
Regulatory roles: Who handles FDA registration, importer duties, labelling and documentation
Exclusivity: Whether the buyer has exclusivity, and in what territory or category
Liability and insurance: Product liability cover and who is responsible for what
Term and exit: Length, renewal, notice period, and what happens to stock and packaging at the end
What US rules mean for a private label product
A product with someone else's name on the pack still has to meet every US rule that applies to the food. The rules below are the ones that most often affect private label arrangements.
Facility registration. Facilities that manufacture, process, pack or hold food for US consumption must register with the FDA, and foreign facilities need a US agent. Registration must be renewed every two years, between 1 October and 31 December of even numbered years, and the current renewal period closes on 31 December 2026. Renewal is free and done online through the FDA Industry Systems account. FDA requires a unique facility identifier, currently the DUNS number, with each registration. If your contract manufacturer is the facility making the product, it is the one that holds the registration, so check that it is current.
Prior Notice. The FDA must be notified before food arrives in the US. The notice is filed for each shipment and the required timing depends on the mode of transport. Our guide to FDA Prior Notice walks through it.
FSVP. Under the Foreign Supplier Verification Program, the US importer must verify that the foreign supplier produces food that meets US safety standards. The importer is generally the US owner or consignee of the food at the time of entry. In a private label chain, that can be the retailer, a distributor or the brand owner, depending on who owns the goods when they arrive. This is worth settling in the contract, because the importer will ask you for documents and may audit you. Read FSVP explained for more.
Labelling. US labels need the Nutrition Facts panel in the US format, an ingredient list, allergen declarations (nine major allergens including sesame), net quantity and the name and place of business of the manufacturer, packer or distributor. If the business named on the pack did not make the product, FDA rules require a phrase such as "Manufactured for" or "Distributed by" before the name. Our comparison of US and EU food labels shows what changes when a European label goes to the US.
Product specific rules. Meat, poultry and some egg products fall under the US Department of Agriculture and have their own approval and inspection regimes, and some products face additional import requirements.
For the full picture, see our practical checklist on food export compliance between the US and Europe.
How to start: a practical path
Decide where private label fits your strategy. Is it a main business, or a way to fill capacity and enter the US?
Choose the products that suit it. Pick products with consistent quality, scalable volumes and a clear position against what is already on US shelves.
Know your numbers. Calculate your cost per unit, your minimum viable price and the volume you can offer without risking your existing customers.
Prepare your supplier pack. Certifications, specification sheets, capacity, samples and indicative pricing.
Test the market. A food market feasibility study can show whether there is demand, who the buyers are and what price the market will accept before you invest.
Identify the right buyers. Retailers, distributors, foodservice companies, hotel and airline caterers and brand owners each buy differently. Match your products to the right group.
Handle the US requirements early. Registration, FSVP support, labelling and documentation should be ready before samples ship.
Negotiate and document carefully. Use the contract checklist above as a starting list.
Pilot, then scale. Start with one product and one buyer, learn what works, then add.
Frequently asked questions
Is private label the same as white label?
Not exactly. White label usually means a standard product that several buyers can rebrand. Private label is often made to the buyer's own specification and sold exclusively under their brand, though in practice the terms overlap.
Can a small producer supply private label?
Yes, if you can meet the buyer's quality, certification and volume requirements. Many buyers look for smaller specialised producers for premium ranges. Smaller producers can also supply foodservice and hospitality groups, which often have more flexible volumes than national retail.
Do I need a food safety certification to supply private label in the US?
Not by law in every case, but most larger buyers require a GFSI benchmarked certification as a condition of supply, and the FDA rules on registration and preventive controls apply regardless. Check what your target buyers require.
Who owns the recipe in a private label deal?
It depends on the contract. If the buyer supplies the formulation, they usually own it. If you supply it, the agreement must say whether it stays yours. Settle this before production starts.
Does private label mean I give up my own brand?
No. Many producers supply private label and sell their own brand at the same time. The key is to protect your own recipes, avoid unwanted overlap between your own and the private label products, and make sure the contract allows it.
Who is responsible for FDA compliance on a private label product?
Responsibility is shared. The facility has registration and food safety obligations, the importer has FSVP duties, and the business named on the label has labelling responsibilities. How these roles are divided depends on how the supply chain and contract are set up.
Where we can help
At VC Agriculinary Consulting we help international food producers and brands build private label and outsourced production programmes for the United States. That includes assessing whether private label fits your business, finding and qualifying buyers or manufacturers, negotiating contracts, developing packaging and handling the US regulatory steps so a first shipment goes smoothly.
You can read more about our private label and outsourcing service or see everything we do on our services page. If you are weighing up a private label opportunity, contact us and tell us what you make and where you want to sell it. For the wider strategy, our guide to US and Europe market entry strategies covers the other routes to market.