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The main difference is that contract manufacturers are hired by other companies to produce items on their behalf. Manufacturers can either produce finished products intended for the end user/customer, or they can make components that are used to manufacture other products.
A contract manufacturing agreement is a legal document that outlines the terms and conditions of a companys relationship with contract manufacturer. Contract manufacturing is a form of outsouricng used by businesses to produce products to sell to their customers.
A private label agreement is a contract used in manufacturing and food production. The agreement guides the terms and conditions of one party producing a food product and another party marketing and selling it under their label or branding. Sometimes this method is called white labeling.
Private Label is the option where you choose an existing product from a manufacturer and put your brand name on it. Contract Manufacturing is the option where you are involved in each component of the product; formulation, packaging, and labeling. Both routes are great options.
Manufacturer brands serve the interest of the manufacturer first, and benefit the retailer who carries them, second. Brands that are owned and marketed by sellers are referred to by various names, such as private-label, store brands, proprietary brands, owned-brand and others.
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Both Private Label and Contract Manufacturing allow organizations to bring quality products to market. While Private Label does not allow the purchaser to modify or change the product, Contract Manufacturing enables companies to produce products to their own specifications.
A private label is a branding arrangement where one company manufactures a product and a different company brands, markets, and sells that product. The private label seller designs, markets, and prices the product, but its the manufacturer that actually makes it and ensures quality control.

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