Private Label vs In-House Production: Which Is Better for Your Cleaning Detergent Business in Malaysia

The cleaning product industry in Malaysia is booming — from household cleaners to industrial-grade disinfectants, demand has never been higher. As a business owner or cleaning professional, you may be thinking of launching your own cleaning brand. But there’s one crucial decision you need to make early on:

Should you produce your own products in-house, or partner with a private label manufacturer?

This guide breaks down everything you need to know about private label vs in-house production, so you can make an informed decision that suits your goals, budget, and growth plans — especially when working with cleaning product manufacturers in Malaysia.

What Is Private Label Manufacturing?

Private label manufacturing means you partner with an existing factory or cleaning detergents supplier, who produces cleaning products under your brand. You don’t need to formulate the product yourself — you simply select from ready-made solutions (sometimes with minor customisation), design your label, and sell the products as your own.

In other words: they handle the production, you handle the branding and sales.

➡️ Browse Malaysia’s trusted cleaning product manufacturers here

What Is In-House Production?

In-house production is the opposite. You create everything yourself — from sourcing raw materials and mixing ingredients to managing production, packaging, and quality control.

This approach gives you full control but also involves a higher upfront investment in:

• Machinery and production equipment

• R&D and formulation testing

• Labour and skilled chemists

• Warehousing and logistics

• Regulatory compliance

It’s a long-term play that works best for established brands or those seeking proprietary products.

Key Differences Between Private Label and In-House Production

Let’s compare both options based on essential business factors:

Factor	Private Label	In-House Production
Startup Cost	Low: No need for factory setup	High: Equipment, staff, materials needed
Time to Market	Fast: Launch in weeks	Slow: Takes months for setup, testing, and approval
Customisation	Limited (Some manufacturers offer semi-custom options)	Full control over formulas and features
Scalability	Easy to scale through supplier	Scaling requires more investment and production space
Certifications	Provided by supplier (e.g., Halal, ISO)	Must be obtained independently
R&D and Testing	Handled by experts	You must hire or outsource
Control & Exclusivity	Shared formulas may be used by other brands	Total exclusivity possible
Inventory Management	Flexible MOQs available	Must forecast and manage own raw stock

What Products Can Be Private Labelled in Malaysia?

Many Malaysian cleaning detergents suppliers offer private label services for:

• Liquid Detergents (multi-purpose, dishwashing, laundry)

• Detergent Powders

• Glass and Surface Cleaners

• Disinfectants and Sanitisers

• Degreasers and Kitchen Cleaners

• Toilet and Bathroom Cleaners

➡️ Check our detergent powder manufacturing options
➡️ Explore all available cleaning products for private label

Pros and Cons of Private Label Manufacturing

Pros:

• Fast market entry: Perfect if you're launching quickly

• Low risk: No need to invest in machinery or R&D

• Proven performance: Manufacturers often provide tested, stable formulas

• Regulatory compliant: Halal, GMP, ISO certifications handled

Cons:

• Less control: You may not get a unique product

• Limited customisation: Not all manufacturers allow full formula tweaks

• Dependency: Your production is tied to another company’s capacity

Pros and Cons of In-House Production

Pros:

• Product ownership: Unique formula, brand recognition

• Cost savings at scale: More control over COGS (cost of goods sold)

• Stronger brand moat: You stand out in the market

Cons:

• High capital investment: Equipment, staff, storage, utilities

• Longer timeline: It can take months to launch

• Regulatory burden: You’re responsible for safety, compliance, audits

Want to better understand detergent types?
➡️ Read our guide to types of cleaning detergents

Which Option Suits Different Business Models?

Let’s explore the ideal fit based on your business goals:

Choose Private Label If:

• You're a startup with limited funds

• You’re testing product-market fit

• You're a retailer adding an in-house brand

• You want to focus on branding and marketing, not production

Example:
A cleaning startup wants to supply eco-friendly cleaning solutions to offices in Klang Valley. With no R&D budget, they partner with a private label manufacturer to get started within 4 weeks.

➡️ Explore household and business cleaning product tips

Choose In-House Production If:

• You have an established cleaning brand

• You need a unique product for niche markets (e.g., industrial degreasers, enzyme-based solutions)

• You have long-term plans for regional expansion

• You have the capital and expertise to run operations
  

Example:
A successful laundry chain with multiple outlets decides to develop its own premium detergent formula with fragrance and softener built-in. The team sets up an in-house R&D lab and production facility in Selangor.

➡️ Read our blog on setting up a laundry business

5 Key Questions to Help You Decide

What’s your capital and risk appetite?

Startups usually benefit more from private label options.

Is speed-to-market important?

Private label allows launch within weeks, while in-house takes months.

Do you want full ownership over the formula?

Then go in-house — or ask about custom formulation under a private label.

How important is flexibility and product range?

Private label suppliers may offer a wide selection, ready-made.

Do you plan to scale nationally or regionally?

Private label is easier for early-stage, but in-house is powerful for long-term scale.

Market Trend: Rise of Private Labels in Home Cleaning

Globally, private label cleaning brands are growing fast — not just in supermarkets, but also through ecommerce, cleaning service companies, and refill stations. Consumers are more open to trying new brands, especially if the product performs well and is priced competitively.

Malaysian cleaning product manufacturers are adapting to this trend by offering:

• Customisable private label solutions

• Flexible order quantities

• Eco-friendly product lines

• Support for packaging, labelling, and compliance

➡️ Read our guide for cleaning product entrepreneurs
➡️ Understand more about cleaning chemicals used in Malaysia

Final Verdict: Start with Private Label, Scale to In-House

In most cases, especially for SMEs and new players, starting with a private label is the smartest move. It allows you to:

• Test the market

• Build brand awareness

• Keep costs low

• Focus on customer acquisition

As your business grows and gains traction, you can transition to in-house production to develop proprietary formulas, reduce long-term costs, and expand your product range.

Ready to Build Your Cleaning Brand?

At MK Pacific Marketing, we help entrepreneurs and businesses in Malaysia succeed with reliable, scalable private label manufacturing. From cleaning detergents to custom solutions, our team provides everything you need to launch confidently.

➡️ Contact us today to speak with a trusted local manufacturer and get expert guidance.