Choosing between OEM and private label manufacturing can determine the future of your wet wipes business. While both models involve third-party production, their implications for branding, control, margins and speed to market vary widely.

At AHC, we specialize in both models and help brands around the world find the right fit based on their goals, resources and market positioning.

Understanding the Difference

OEM (Original Equipment Manufacturer) means the manufacturer produces products based on the buyer’s design, formula or specifications. You control product claims, design, and market strategy.

Private label products are pre-developed by the manufacturer, and the buyer customizes only the brand name, label and basic design. These are often faster to launch and more cost-effective at lower MOQs.

Pros and Cons

OEM: Full Customization, Higher Investment

Pros:

• Own your formula and specifications

• Tailored to target market needs

• Higher perceived brand value

• Easier to register and protect in regulated markets

Cons:

• Longer lead time for R&D

• Higher MOQs and cost per unit

• Requires internal expertise or guidance

Private Label: Speed and Simplicity

Pros:

• Faster time to market

• Lower development cost

• Ideal for testing new segments or markets

• Minimal regulatory burden

Cons:

• Limited control over formulation

• Harder to differentiate your brand

• Potential overlap with competitors using the same base

Profit Margins and Supply Chain Considerations

OEM wipes may command higher retail prices due to their unique value proposition. However, they often require upfront R&D investment and testing. Private label wipes offer better short-term cash flow and fast scaling but face tighter competition and lower pricing flexibility.

So, if your brand strategy relies on unique claims, patented ingredients or premium branding, OEM is worth the long-term effort. If speed, agility and cost-efficiency are top priorities, private label is your best entry point.

Case Study 1: Building a Brand in Latin America

A startup in Colombia approached AHC with a clear vision for natural baby wipes designed for tropical climates. We worked with their team to co-develop an OEM formula using biodegradable substrates and herbal extracts. With the right support, they successfully entered pharmacies and premium retail chains in just under a year.

Case Study 2: Fast Expansion into Supermarkets

A retail group in Southeast Asia launched a private label wipe line in record time using our pre-tested SKUs. Within 6 months, the wipes were stocked in 800+ supermarkets across the region. Their priority was cost competitiveness and broad appeal, which made private label the perfect fit.

Which One Is Right for You?

Ask yourself:

• Do I need a unique formula or packaging?

• Am I targeting a premium or mass market?

• What is my timeline for launch?

• Do I have R&D resources or need full support?

At AHC, we help clients evaluate the tradeoffs and recommend the right model based on their business stage, target audience, and long-term goals. With 25 years of experience, we offer a top-tier one-stop service for wet wipes brand development, from concept to shelf.

Ready to Explore OEM or Private Label Wipes?

We offer scalable solutions for both OEM and private label clients. From biodegradable baby wipes to functional beauty wipes, our team delivers compliant, tested and market-ready products to 75+ countries.

Get in touch with our team and let's start your project together:

sales@amhygienics.com

+86-0573-85858389

www.amhygienics.com