Ingredient branding refers to the branding of a product that is only available as an ingredient in another product; the ingredient product cannot be purchased separately. The ingredient is promoted as a distinguishing feature of the finished product. When customers view the finished product, they effectively see 'a brand within a brand.' A supplier of such an ingredient product raises the profile of its brand and attracts new customers. Ingredient Branding reduces the possibility of products being substituted by others and gives the company more bargaining power when dealing with the manufacturer of the finished product.

Ultimately, ingredient branding creates a win-win situation by transferring the positive attributes of the ingredient product to the finished product and increasing its desirability in the eyes of consumers. To be effective, the supplied ingredient product must perform a critical function in the final product and be significantly better than competing products. Otherwise, convincing customers that the ingredient is a necessary and valuable component of the final product will be extremely difficult.

When and how to apply lngredient Branding:

 Ingredient branding can benefit products that have a strong brand awareness among customers and are of a high quality. This pattern is particularly advantageous when the ingredient is synergistic or complementary to the final product. Well-known companies that use this pattern are Red Bull and Microsoft.