As the healthcare infrastructure expands, the pharmaceutical and nutraceutical industries are expanding quickly, and companies are always searching for effective ways to introduce high-quality products to the market. Many companies offer private label and third-party manufacturing to investors who wish to enter the pharmaceutical industry; this is ideal for startups and organisations looking to grow.
Now, third-party manufacturing and private label manufacturing terms look similar, but they differ in purpose, which we will learn in this blog and understand the difference between these two terms. While investing in a company, you should know these terms and their meanings for the good growth of your business.
So, in this article, we will explore the difference between third-party manufacturing and private label manufacturing, their advantages, and which is best for you.
Third-Party Manufacturing – Meaning and its key features
Let’s start simple: the manufacturer produces your product, and you sell it under your own brand name. The manufacturer creates the goods under the client’s brand name after the client company gives product information or chooses formulations from the manufacturer’s inventory.
Here are the key features of third-party manufacturing:
- Low setup costs
- Brand has minimal involvement in formulation; all work is done by experts
- All the products are manufactured under client customisation.
- Fast production assurances to complete the timelines
- Best for pharmaceutical and nutraceutical businesses
For example, if any pharma distributor wants to launch a multivitamin tablet with their own customisation catalogue, they will contact Getwell Biocare, which provides third-party manufacturing services. After giving an order to them, you will receive finished products branded under the company name.
Private Label Manufacturing – Meaning and its key features
Here, we also start with simple words when you decide the product specification, packaging style, ingredients, and sometimes even the formula. It is a step forward then third-party manufacturing because products can be altered to fit the brand’s requirements. Products that the brand offers under its own name are created, developed, and manufactured by the company.
Some of the key features of Private Label Manufacturing:
- Customised formulation available
- Higher involvement and customisation options
- Ideal for dietary, cosmetics, and herbal supplements
- Brand-specific design and packaging
For Example, some Ayurveda brands want their own herbal Shilajit product with a unique formula. Getwell Biocare can develop it through private label manufacturing.
What is the current Indian Pharma and Wellness Market?
It is important to understand the market backdrop, so let’s dive into the market:
| As per the India Brand Equity Foundation, | The Indian pharmaceutical industry was valued at around USD 55 billion in 2025 and projected to grow approx. USD 120 billion by 2030. |
| Domestic consumption was valued at about USD 23.5 billion for the year 2024, with a growing CAGR of 10%. |
Global Position
| As per a report from the Economic Times Pharma, | India is the third largest pharmaceutical producer in the world by volume and ranks 14th in the value of production. As per the India Brand Equity Foundation, as mentioned above, the country supplies roughly 20% of the world’s generic drugs by volume and is the largest supplier of affordable vaccines. |
Export Performance
| According to DD India, | Indian pharmaceutical exports reached USD 30.47 billion in the year of 2025, with a growing CAGR of 9.5%, with strong demand from the United States and Europe. Global footprint with products shipped to over 200 countries worldwide. |
The Difference Between Third-Party and Private Label Manufacturing
| Third-Party Manufacturing | Private-Label Manufacturing |
| Product customisation in third-party is limited, brands typically choose from ready formulations, which are suitable for generic pharma products. | Product customisation is high in private-label manufacturing; brands can choose ingredients, scents, colours, and formulation, ideal for unique and premium products. |
| if we talk about research and development, minimal research is required, and the manufacturer already has approved formulations | In private label manufacturing, it requires more research and innovation, and the product is manufactured under a brand vision. |
| They provide standard packaging options with fewer customisation choices | In this, it has full control over packaging design, labels, and theme, which helps build a strong brand identity. |
| When it comes to customisation in third-party, there is low investment with the most cost-effective production model, suitable for startups. | In private-label manufacturing, there is higher investment due to customisation and development, and this is best for bigger brands that are looking for their identity. |
| In the market, third-party manufacturers have a faster turnover, and products can be launched quickly as formulas already exist. | In Private-Label Marketing, it takes a longer time due to product development and involves long-term brand building. |
What to Choose Between Third-Party and Private Label Manufacturing?
This depends on your business. What are your business goals like if you:
Choosing third-party manufacturing, you will get:
- Start a business with low investment
- Quick product launch
- Limited R&D experience
- It prefers standard formulations
- Need pharma, herbal, or nutraceutical products
Choosing private label manufacturing, you will get:
- Unique and customised products
- Complete control over product identity
- Customise formulations
- Long-term branding and differentiation
- Build a premium or luxury line.
Why to Choose GetWell BioCare for Manufacturing Services?
There are several reasons to choose GetWell BioCare for your business, such as:
- Their facilities are WHO-GMP certified and DCGI approved
- To provide top-quality products, they have an advanced and modern manufacturing infrastructure.
- Wide range of products
- Best for a brand seeking private label product creation
- Affordable pricing for both manufacturing
- It provides full assistance from product development to dispatch.
As a trusted name in the pharmaceutical and wellness industry, Getwell Biocare provide you with both private label and third-party manufacturing services with unmatched quality and compliance.
What are the Benefits of Choosing GetWell BioCare as Your Manufacturing Partner?
Here are some of the benefits:
- Complete transparency with clients
- Fast production timelines
- Dedicated team to support 24-hour
- Affordable minimum order quantities
- Timely delivery across India
- Fast production with formulation
Final Takeaway!
In the pharmaceutical and wellness industries, both private label manufacturing and third-party manufacturing are effective commercial strategies. Your brand objectives, financial resources, and degree of product participation will determine which option is best for you.
- Select Third-Party Manufacturing if you desire little investment and rapid entry.
- Select Private Label Manufacturing if you want a distinctive, personalized, and enduring brand identity.
GetWell BioCare provides comprehensive, superior solutions for both models thanks to its years of experience and top-notch facilities. Getwell Biocare guarantees superior manufacturing and dependable support at every stage, regardless of your company’s size.
FAQs
Do Getwell Biocare develop custom formulations?
Certainly, they provide custom formulations for herbals, nutraceuticals, and pharma products under private label manufacturing.
For start-ups, what manufacturer is ideal?
Third-party manufacturing is perfect for startups because it requires low investment, quick product availability, and minimal involvement in formulation development.
Which model provides you faster return in business?
For a faster return, you should go for third-party manufacturing for the quick launch of products with low costs.
Which model provides a better brand differentiation?
There is better differentiation for the brand as third party manufacturing allows customized formulation of the product as per the brand’s unique positioning.
Are both manufacturing models supported by Getwell Biocare?
Yes, it offers WHO-GMP certified third party and private label manufacturing. This is beneficial as it offers formulation help, regulatory assistance, scalability, as well as branding help.
Are there prospects left for outsourced pharmaceutical manufacturing in India?
Given the robust home market, improving exports, and government backing, the pharmaceutical manufacturing segment is set to exhibit a growth rate of 10% CAGR, which categorizes it as a growth model.
Which model provides more lucrative profit margins?
Long-term margin advantages are high in third party manufacturing, whereas a moderate margin is seen in private label manufacturing.
What is the time frame needed to adjust from private label to third-party manufacturing?
The process typically takes 30-90 days, depending on progress with the formulation development, approvals, and package changes.
