The production of biologically active supplements is a growing business. These dietary supplements help to address potential deficiencies of beneficial substances and to maintain health – both of the body as a whole and of specific organs and systems.
Consumer demand for such products is growing. More and more people are adopting healthy lifestyles, making careful dietary choices, paying attention to the composition, quality and safety of various products, and taking up active sports.
The COVID-19 pandemic has been a significant driving force in raising awareness of the importance of a healthy lifestyle. Many consumers have started to focus not only on addressing specific health issues but also on preventing various diseases.
If all recommendations are followed, dietary supplements can improve metabolism, normalise digestive microflora, and strengthen immunity. Scientific studies have shown that regular use of dietary supplements can reduce the risk of deficiency conditions by up to 80%. Therefore, buyers consider dietary supplements a simple, convenient, and effective tool for improving their health.
Due to the growing demand for dietary supplements, many entrepreneurs are planning to produce and sell them. To ensure a successful business, it is crucial to select reliable contractors who can guarantee the products’ quality, safety, and effectiveness.
This article was prepared by MillMax, a European company that specialises in producing health and beauty products. The material will guide you on what to consider when selecting a contractor to create a successful brand of dietary supplements, to avoid making mistakes.
Overview of The Market for The Manufacture of Dietary Supplements
The market for manufacturing dietary supplements is one of the fastest-growing and most dynamic segments in the nutritional supplements industry. The demand for dietary supplements is constantly increasing due to growing consumer awareness of the importance of a healthy lifestyle and preventative health care.
In 2024, the dietary supplements market was valued at almost 140 billion US dollars. According to experts, the industry will grow at a compound annual growth rate of 4.5% over the next five years, and by 2029, the global market for dietary supplements will reach $174 billion.
However, the Asia Pacific region continues to be the fastest growing market. The increasing demand for supplements in countries such as India, China, and Japan is attributed to the significant population ageing. The market is also booming in Europe and North America.
Major international manufacturers, including Pfizer, Glanbia Nutritionals, Abbott, Bayer AG, and Amway, are among the major players in the market. However, there are also numerous local companies that specialise in producing specific types of dietary supplements.
For instance, MillMax. It is a European company operating as a manufacturer of vitamins, amino acids and other health and beauty products. Competition in the market is fierce, forcing companies to constantly hone their product quality, expand their product range and look for new advertising opportunities.
In fact, vitamins will account for a significant share of the dietary supplements market in 2023 — up to 30 %. If you decide to become a vitamin manufacturer, you can develop several types of products. For example, vitamin A supplements (carotenoids and retinols), vitamin B supplements (folic acid), vitamin C supplements (ascorbic acid) and vitamin D supplements (cholecalciferol) are currently popular on the market.
In addition to vitamins, herbal supplements, protein, amino acids and sports nutrition, prebiotics, probiotics and fatty acids are also popular with consumers. Experts predict that the protein and amino acid supplements market will grow at an average annual rate of 13.4 % until 2030.
In terms of product format, the most common form of dietary supplements today is tablets, which will account for 32.3 % of the segment’s revenue in 2023. Dietary supplements often contain excipients to facilitate absorption and disintegration of the tablets. Capsules, powders, chewables, softgels, liquids and other forms of supplements are also popular.
The intended purpose of these products can vary. In recent years, the top sellers have been supplements to improve general well being, control weight and preserve healthy bones and joints. Customers are also showing interest in products to boost immunity, normalise digestion, control blood sugar levels and maintain healthy skin, hair and nails.
The primary end-users of dietary supplements are children, pregnant women, adults and the elderly. The infant segment is expected to show the highest growth of nearly 14 % during 2024-2029.
The key developments in the dietary supplements market today are as follows:
- There is a growing interest in products that fulfil a preventive function.
- The rising cost of medical services in various countries is fuelling demand for supplements to support general health.
- Vegan, natural and organic supplements are gaining popularity.
- Manufacturers are striving to customise their products to meet the needs of specific target audiences.
- The amino acids, sports nutrition and probiotics segments are showing steady growth.
- The ageing population in advanced countries is also a factor in the development of the global dietary supplements market.
- Consumers are increasingly utilising the internet to self-diagnose and purchase nutritional supplements.
- Advances in manufacturing technologies such as nanoencapsulation and microencapsulation are enhancing the quality and range of dietary supplements.
- Energy and weight management supplements have taken the lion’s share of the market.
- Awareness of the benefits of nutritional supplements is rising among working adults.
Reviewing Key Factors in Choosing a Contractor
Setting up your own production from scratch can be a lengthy, labour-intensive and potentially expensive process. This is why many beginners and experienced entrepreneurs look for a partner to help them create a private label of dietary supplements. To ensure the quality, safety and commercial success of your supplements, there are some key factors to consider in selecting a partner.
Experience and credibility
It is of utmost importance to ensure that the contract manufacturer has sufficient experience and expertise in the manufacture of dietary supplements. You can ask the contract manufacturer for examples of projects they have undertaken. It is also not superfluous to search for information about the company on the internet and read reviews from real customers who have already utilised the contractor’s services.
Raw materials involved
The quality of base substances used in the production is essential for the efficacy and safety of the final product, therefore you should request information from your partner regarding the ingredients used in their production. For example, you can ask for documentation on the origin and extraction methods of ingredients, as well as the results of laboratory tests carried out on specific ingredients.
Production facilities
The contractor must possess up-to-date equipment and have access to advanced nutritional supplement manufacturing technologies to develop a product that fully meets your requirements, as well as taking into account the preferences of the target audience and market trends.
Good industrial practices
It is crucial that all production processes adhere to quality and safety standards and comply with the laws and regulations in force in the country or region. You may request the contract manufacturer to provide the relevant certificates and oversee quality at each stage of production.
Laboratory and R&D department
Determine whether the contractor’s factory has an in-house research laboratory and R&D department. This is essential to develop a safe and effective product formula, verify ingredient quality, test dietary supplement samples, and guarantee consumer safety.
Pricing policy
Research tenders from a number of contractors to ensure you get the best value for your money. Be cautious of prices that are too low, as they may indicate poor quality of service. Additionally, inquire about flexible and favourable terms if you plan on long-term cooperation.
Extra services
Certain contract manufacturers provide their clients with a complete range of services to save time and streamline the process of producing and launching a branded dietary supplement. For instance, you can request the development of an effective marketing plan and customised packaging, rent space to store the final product, request assistance in setting up logistics, or obtain additional certifications.
Flexibility and scaling
If you successfully establish a brand of nutritional supplements, you will likely seek to expand your business in the future. Therefore, it is worth discussing with your partner in advance their ability to scale up production, such as expanding the product range, creating new formulas of nutritional supplements, increasing the volume of goods produced, or rebranding.
Conclusions
Selecting a contractor for production is a crucial step in establishing and expanding a business in the dietary supplements industry. In today’s dynamic market, a new brand of dietary supplements has a high potential for popularity and demand.
To achieve consumer recognition and commercial success, it is essential to evaluate key factors when choosing a partner: their experience, production capacity, compliance with standards, flexibility and scalability. Choosing the right contractor is crucial for achieving your goals and ensuring the success of your dietary supplement brand.