Hemp Oil: What Is White Labeling?

White labeling is a practice used by many businesses in which they use their brand name on a product regardless of whether they were behind the manufacturing of the product or not. It’s estimated that up to 90 percent of hemp-derived products that are imported from Europe to the US come from white label services. 

The terms “white label” and “private label” are often used interchangeably when the manufacturer or producer of a product removes their brand name and logo from a product and uses the branding of the seller, which in turn, sells the product under their name and logo. 

BRANDED PRODUCT

There are a growing number of companies that are using white labeling for products such as full spectrum hemp oil. Starting a white label brand is the preferred choice for many up-and-coming businesses since they offer many advantages to the brand, the first one being that you get to have their own branded product. 

CONTROL THE PRICING

Another major benefit of having your own brand is that you get to control the pricing of the product that you’re selling via white labeling. Businesses that are selling hemp-derived products get to strategically price their products depending on various market factors, including the quality and demand for the hemp-based product. 

When it comes to the pricing of the product, it’s not unheard of for existing brands to use their RRP ‘Recommended Retail Price’ when they sell their product. But if you have your own hemp-based product that’s being marketed under your branding, you get to decide the pricing of the product. 

This makes white labeling the smart choice for those who want to start a business in the hemp industry without having to invest the cost and production that goes into manufacturing a product from scratch. 

NO MANUFACTURER’S LICENSE

If you want to create your own hemp oil/CBD or hemp-based product, you’ll need a manufacturer’s license. This is required to ensure that you know the laws governing the manufacturing of full spectrum hemp products so that you can create a sustainable product. Today, white labeling allows you to find a gap in the hemp market and introduce your own product without having to manufacture the actual product. 

SAVE MONEY

Compared to the cost of manufacturing, which will also include the production, designing, packaging, and marketing of the product, white labeling allows you to get a complete product that’s ready for the shelf. This makes white labeling the smart choice for those who want to start a business in the hemp industry without having to invest the cost and production that goes into manufacturing a product from scratch. 

BOOMING MARKET

As the US FDA works on improving—and clarifying—its regulations, the hemp oil/CBD industry continues its booming trajectory. As awareness arises, it’s no secret that more and more businesses and investors are going to enter the hemp oil/CBD industry to capitalize on this new-found growth. It’s easy to discern why so many business experts are calling this hemp oil/CBD explosive era the new gold rush.