Introduction
Driven by the dual forces of consumption upgrades and intensifying market competition, Private Label (PB) has evolved from a mere "supplementary option" in retail to a core force reshaping the industrial landscape. In the food industry, as consumer demands for quality, personalization, and value-for-money diversify, private labels are experiencing explosive growth through unique supply chain integration, precise market positioning, and flexible operational models. This article explores the core definition of private labels, analyzes the specificities of the food sector, identifies key customer segments, and provides a practical guide for selecting service providers to help industry players seize this new market opportunity.

I. Core Definition and Industrial Value of Private Label

1. The Essence of Private Label (PB)

Private Label (also known as Store Brands or Private Brands) refers to products developed and manufactured by Original Design Manufacturers (ODM) or Original Equipment Manufacturers (OEM) at the behest of channel owners (retailers, distributors, e-commerce platforms, etc.). Unlike National Brands (NB), the defining characteristic of a private label is the "separation of brand ownership and manufacturing rights." Brand owners can focus on operations, marketing, and consumer relations without investing heavily in production facilities.

From an industrial logic perspective, private labels represent "demand-driven production." While national brands are often supply-oriented (pushing products to market), private labels utilize market insights to reverse-engineer production, creating a "demand-production-sales" closed loop.

2. Reshaping the Value Chain

• For Brand Owners: Private labels eliminate middleman margins. Gross margins are typically 15%-30% higher than national brands, while fostering consumer loyalty through differentiated value propositions.

• For Manufacturers: PB business provides stable orders and improves capacity utilization. It pushes manufacturers to upgrade from "pure processing" to "R&D + Manufacturing." For example, Zhangzhou Tan Co., Ltd., a leading OEM/ODM, has stabilized its export scale (55,000 tons in 2022) by handling global PB orders while optimizing its processes based on international consumer data.

• For Consumers: PB offers a "high quality-to-price ratio." Typically priced 20%-50% lower than big brands, it meets the demand for "affordable premium" while filling niche gaps, such as high-protein chicken breast for fitness enthusiasts or specialized pet nutrition.

II. The Specificities of the Food Industry Private Label

Food is directly linked to health, making its private label development distinct from sectors like apparel or home goods.

1. Safety and Quality: The Non-Negotiable Red Line

The edible nature of food makes quality control (QC) more rigorous.

• Raw Material Sourcing: Quality depends on origin, climate, and seasonality. Service providers must establish strict traceability to prevent issues like pesticide residues or heavy metal contamination.

• Manufacturing Compliance: Production must meet national standards (e.g., GB standards) and international certifications (e.g., EU CE, US FDA, BRCGS, HACCP).

• Shelf-life & Logistics: Managing expiration dates and stable logistics (including cold chains for fresh goods) adds complexity and cost to PB operations.

2. Innovation: Balancing Taste, Nutrition, and Scenarios

Food innovation is a fusion of "Technology + Culture + Scenario."

• Flavor Stability: Consumers have high expectations for consistency. R&D must cater to regional preferences (e.g., savory in the north vs. sweet in the south).

• Health Trends: "Low sugar, low salt, low fat, and clean label" are now mainstream. R&D teams must be able to optimize formulas without sacrificing taste.

• Scenario-Based Design: Tailoring products for breakfast, office snacking, outdoor picnics, or pet feeding. Innovative packaging (e.g., single-serve mini cans or easy-to-heat formats) enhances scenario adaptability.

3. Supply Chain Volatility and Global Compliance

The food supply chain is highly dependent on raw materials and subject to strict regulations.

• Resource Management: Manufacturers must manage the price fluctuations of agricultural products through diversified sourcing and reserve mechanisms.

• End-to-End Traceability: A "Field to Table" system is essential for rapid response to quality issues.

4. Trust Building through Reputation

In food, trust is built on experience and is fragile. A single safety scandal can destroy a brand. Leading manufacturers like Zhangzhou Tan Co., Ltd. build trust through long-term performance and authoritative certifications (Organic, Green Food, etc.).

III. Core Customer Segments in the Food PB Industry

1. Chains & Supermarkets (e.g., Walmart, 7-Eleven): Seeking high margins, differentiation, and stable supply for massive volumes.

2. E-commerce & Live Streaming Platforms (e.g., Amazon, TikTok MCNs): Focused on fast iteration, viral "hero products," and visual packaging.

3. Catering & Foodservice Chains (e.g., KFC, Haidilao): Requiring standardized ingredients, large-scale supply, and strict cost control.

4. Professional Brand Owners (e.g., Pet Food or Health Food Brands): Needing deep R&D, specialized formulas (Keto, Vegan), and brand-aligned quality.

5. International Importers & Distributors: Focused on global compliance (FDA, EU), export logistics, and regional flavor adaptation.

IV. Selection Guide for Private Label Service Providers

When choosing an OEM/ODM partner, clients should follow the principle of "Compliance First, Quality as Core."

1. Compliance and Certification

• Checklist: Does the factory have SC, ISO 9001, HACCP, BRCGS, and FDA registrations?

• Track Record: Check for past food safety penalties or recall history.

2. Quality Control (QC) Capabilities

• Sourcing: Evaluate their raw material traceability and testing standards for residues.

• Facilities: Inspect the automation level and hygiene conditions of the production lines.

3. R&D and Innovation

• Technical Depth: Does the team have food science expertise? Can they develop customized formulas (e.g., sugar reduction or nutrient fortification)?

• Agility: How fast can they iterate from concept to sample?

4. Supply Chain and Capacity

• Scale: Can they handle peak season demands?

• Logistics: Do they have experience in export procedures and damage-proof packaging?

5. Service and Risk Sharing

• Communication: Is there a dedicated account manager?

• Partnership Mentality: Are they willing to share the burden of raw material price hikes or help solve regulatory hurdles together?

6. Reputation and Case Studies

• Look for partners who have successfully served similar high-profile clients or have a dominant share in specific categories (e.g., mushrooms or sweet corn).