White Label vs. Private Label: What’s the Difference—and Where’s the Opportunity?

As competition in the pet industry intensifies, more brands and retailers are turning to exclusive product offerings to stand out. Two common strategies are white labeling and private labeling—often confused, but critically different in impact.  

White labeling involves putting your brand’s logo and messaging on an existing, typically generic, product—a formula that multiple retailers or brands can purchase and rebrand. It's a fast, low-cost solution, but it offers little in the way of true brand differentiation and innovation. Private labeling, by contrast, means the retailer or brand owns the unique formula created specifically for them (and sometimes even by them), with the ability to select ingredients, and control over formulation, claims, and design. Think of white labeling as renting a product versus private labeling as owning your own custom creation. In other words, renting an apartment versus building your dream home.  

Private labeling can also commonly be referred to as “store brand” or “house brand.” However, this approach is not limited to retailers. Similarly, the same concept utilized by companies like Petco or Chewy can be useful to independent pet brands by allowing them to leverage customization and brand differences without the bottom-line burden of owning their own manufacturing facilities. This is also referred to as working with a co-manufacturer, or a third party that produces the product, but the brand or retailer retains ownership of the unique formulation, design, claims, and other aspects of the product. 

In today’s market, where consumers are seeking authenticity, transparency, and premium quality, private labeling has emerged as the more strategic and profitable choice. 

Private Label Taking Over? 

The latest industry data confirms the shift to private labeling. According to NielsenIQ, premium pet food continued to show double-digit unit growth through mid-2024, even as broader pet food demand stabilized. Private label now accounts for approximately 17% of both dollar and unit share in the pet category, with store-brand offerings contributing nearly 3.5% of total dollar sales. This aligns with broader consumer trends across categories—data from the Private Label Manufacturers Association (PLMA) shows private label dollar sales grew 3.9% in 2024, outpacing national brands. In fact, across all sectors, private label now represents 19.5% of total dollar share, a 3% increase from the previous year. This growth is driven not by low-cost generics but by premium, wellness-focused store brands that meet modern consumer expectations for health, sustainability, and ingredient transparency, and the pet industry is uniquely positioned to benefit from this trend. In the U.S., pet spending reached $151.9 billion in 2024 and is projected to hit $157 billion in 2025, with pet parents increasingly treating their pets as members of the family. Interestingly, over 80% of consumers view private label quality as equal to or better than national brands. In the pet space, that opens the door for truly differentiated products, from gut health supplements and novel proteins to functional treats and sustainable packaging that resonate with today’s wellness-driven pet parent.  

Moreover, private label products offer substantial financial upside. On average, they yield 25% to 30% higher gross margins than national brands (or “name brands”) due to lower marketing and distribution costs and stronger customer retention. Some niche pet brands report even higher margins, especially when their products are aligned with emerging trends or serve an unmet need. 

This is exactly where BSM Partners delivers competitive advantages. As the largest full-service pet industry consulting firm in North America, our team of veterinary nutritionists, PhD food scientists and nutritionists, regulatory experts, and product developers helps brands build exclusive, science-backed formulations that go far beyond basic private labeling. From functional treats to next-generation supplements, we ensure that each product not only meets consumers’ needs but also aligns with the latest science and market trends.  

We also handle the regulatory side, navigating guidelines set by the Association of American Feed Control Officials (AAFCO), substantiating claims, and ensuring products are both legally compliant and marketing-ready. Our innovation pipeline helps brands stay ahead of the curve, while our extensive network of trusted co-manufacturers allows for rapid scaling from prototype to launch. 

While white labeling may offer a fast route to market, it may not secure long-term customer loyalty or meaningful differentiation. Private labeling, especially when grounded in innovation and scientific credibility, builds lasting brand equity. It empowers pet brands and retailers to deliver premium, exclusive products that reflect their values and meet rising consumer expectations for transparency, functionality, and quality. With the pet category showing no signs of slowing down and private-label sales and trust on the rise, now is the time to invest in a private-label strategy that sets a brand apart. 

With BSM Partners as your innovation partner, your private label becomes a competitive advantage built on science, expertise, and strategic execution. 

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About the Author

Dr. Katy Miller works as the Director of Veterinary Services at BSM Partners. She earned her veterinary degree at Ross University and completed her clinical year at Louisiana State University. She previously served for 11 years as the Director of Dog and Cat Health and Nutrition for Mud Bay where she earned multiple certifications and specialized in pet food nutrition, prior to which she practiced general and emergency medicine for seven years. She is also a competitive three-day eventer, licensed falconer, and claims only two (Golden and Mini Doxie) of their nine dogs.