The demand for supplement contract manufacturing is growing as more consumers prioritize health and wellness. In the U.S., approximately 75% of adults take dietary supplements, with 55% using them regularly. This surge in demand creates a unique opportunity for brands to thrive in the supplements industry.
By partnering with a reputable supplement contract manufacturer, businesses can streamline production, ensure regulatory compliance, and deliver high-quality products to market faster. In this blog, we’ll explore the key benefits of supplement contract manufacturing and how it can help your business succeed.
What Is a Supplement Contract Manufacturer?
Raising the capital to build a manufacturing facility to manufacture supplements can be tough if you want to start a supplement brand. That’s where a supplement contract manufacturer comes in.
A supplement contract manufacturer is a company that can relieve you from the hassle of manufacturing supplements by producing them on your behalf.
A dietary supplement manufacturer can also help you with other tasks involved during production, such as supplement packaging, labeling, and custom formulation.
10 Benefits of Working With a Supplement Contract Manufacturer
Partnering with a supplement contract manufacturer offers businesses significant advantages, from cost reduction and quality assurance to faster market entry and scalable production. By leveraging turnkey solutions, customized options, and solid supplier relationships, you can streamline operations, maintain compliance, and focus on growing your brand.
1. Lower Initial Costs with Supplement Contract Manufacturing
Building a manufacturing facility, recruiting employees, and conducting research can come at a hefty cost. By partnering with a supplement contract manufacturer, you won’t have to do any of these things to launch your business. Furthermore, you won’t have to invest funds in costly equipment.
The manufacturer will handle all manufacturing-related tasks, allowing you to allocate funds to other core areas of your business, such as marketing and branding.
2. Ensuring Quality Control in Dietary Supplement Production
Reputable supplement contract manufacturers follow industry best practices. These companies are usually registered with the FDA. Furthermore, their supplements are often third-party tested by other organizations, such as the NSF, to guarantee their safety and efficacy.
Working with a supplement contract manufacturer can enable you to provide consumers with effective, safe, and pure supplements. This can ensure you comply with regulatory requirements and help you avoid costly legal issues.
3. Accelerate Speed to Market with Contract Manufacturing
The dietary supplements industry is highly competitive, with nearly 30,000 different brands available. If you want to stay ahead of the curve, you can’t afford to fulfill orders late.
Working with a contract manufacturer can enable you to quickly get your products to market since manufacturers have the expertise to produce supplements fast. Speed to market can be a huge differentiator for your brand — particularly in the supplements market that has dynamic consumer preferences.
4. Scalable Solutions for Nutritional Supplement Businesses
Scalability is arguably one of the biggest benefits of working with a supplement contract manufacturer. With the help of a contract manufacturer, you can increase or decrease your production needs depending on product demand.
You don’t have to purchase extra equipment or hire additional staff if product demand spikes. Similarly, you can reduce output without worrying about underutilizing equipment or labor.
5. Custom Formulations for Niche Dietary Supplement Markets
A supplement contract manufacturer can help you produce tailor-made supplements if you want to target a particular niche. For example, if you want to provide a custom formulation that addresses particular nutritional deficiencies, working with a contract manufacturer can allow you to produce effective, bespoke supplements.
6. Turnkey Contract Manufacturing for Streamlined Operations
Some contract supplement manufacturers offer all-in-one services, meaning they handle the entire process from concept to delivery. This includes product formulation, manufacturing, label design, packaging, and order fulfillment. Allowing one manufacturer to handle all these tasks can significantly reduce manufacturing complexity and accelerate the entire process.
7. Reduced Labor Costs in Supplement Manufacturing
Supplement manufacturing is labor-intensive. It requires a large team of professionals, including quality assurance (QA) specialists, microbiologists, food scientists, manufacturing technicians, and machine operators.
You won’t have to recruit staff when you partner with a contract manufacturer. You’ll be able to tap into a large talent pool without worrying about hiring workers, managing payroll, or scheduling shifts.
8. Accurate Cost Estimates for Supplement Manufacturing Projects
Supplement manufacturing comes with numerous costs such as purchasing raw materials, paying facility overhead costs, conducting research and development, performing quality control testing, and paying regulatory compliance fees.
Some of these costs often fluctuate, so you might find it difficult to determine how much to allocate for each production cost if you opt for DIY manufacturing.
Contract manufacturers can help you take the guesswork out of production costs. Based on experience, they know how much production costs are and can provide you with a detailed upfront quotation. This can enable you to budget and allocate sufficient funds for the entire process.
9. Reliable Production Timelines for Dietary Supplements
DIY manufacturing comes with several unknowns. From machine breakdowns and product sourcing difficulties to formulation challenges, various factors can impede manufacturing.
Contract manufacturers know how to deal with unforeseen contingencies due to their vast experience. So, when you partner with a contract manufacturer, you’re more likely to stay on schedule.
10. Leverage Supplier Relationships in Contract Manufacturing
Partnering with a contract manufacturer can give you a massive edge over your competitors. Often, contract manufacturers have established supplier relationships. Their strong supplier relationships can benefit you in the following ways:
- Cost savings: Contract manufacturers can negotiate for volume-based discounts and subsequently pass on the discounts to you
- Operational efficiency: Contract manufacturers with robust supplier relationships are less likely to experience supply chain disruptions. This can enable you to avoid issues such as costly delays, enhancing operational efficiency.
- Stable pricing: Price fluctuations often arise due to increased raw material costs. Contract manufacturers with strong supplier relationships can negotiate favorable fixed pricing terms in exchange for extended contracts or higher minimum orders. This can allow you to keep your product prices stable.
What to Consider When Selecting a Supplement Contract Manufacturer
While working with a supplement contract manufacturer offers many benefits, not all manufacturers are created equal. Bearing that in mind, here are key factors to consider when selecting a manufacturer:
Experience and Expertise
Look for a dietary supplement manufacturer with a track record of producing supplements in your specific product category.
For example, if you want to provide liquid bariatric multivitamins for people who recently underwent weight loss surgery, you’ll want to partner with a manufacturer with experience producing bariatric supplements.
Regulatory Compliance
Look for a supplement manufacturer with certifications from reputable bodies, such as the FDA, USDA, and Better Business Bureau. These certifications demonstrate the manufacturer’s commitment to adhering to regulatory guidelines and quality production standards.
Flexibility
Choose a manufacturer that can adapt to your business needs. When evaluating a manufacturer’s adaptability, here’s what to consider:
- Production capacity: Select a manufacturer with the ability to scale production as demand for your products rises
- Minimum order quantity: Partner with a manufacturer with flexible minimum order quantities, preferably low minimums, especially if you’re launching your brand
Services Offered
Some supplement contract manufacturers exclusively focus on manufacturing, while others offer multiple services. Choose a manufacturer that provides various services to streamline production and get your products to market faster.
Customer Service and Communication
Every so often, you may encounter challenges running your supplement business. When evaluating contract manufacturers, assess how quickly they respond to queries or concerns via your preferred communication channels.
Additionally, choose manufacturers that are transparent about their sourcing practices and quality standards.
Pricing
The cost of producing supplements varies across manufacturers, so don’t settle for the first or cheapest manufacturer you stumble upon. Compare pricing across different manufacturers, considering the supplement quality and services offered.
Partner With a Reputable Contract Manufacturer to Streamline Production
Working with a contract manufacturer to produce supplements can allow you to concentrate on aspects of your business you’re conversant with while the manufacturer handles the technical aspects of production, such as product formulation, research and development, and manufacturing.
However, you shouldn’t partner with just any manufacturer. Choose a reputable manufacturer that’s flexible, adheres to regulatory guidelines and has experience producing your desired supplements.
At Matsun Nutrition, we have over three decades of experience producing a variety of supplements, and we are FDA-inspected and cGMP-compliant. Moreover, we offer low minimums of just 12 bottles, enabling small businesses to launch supplement brands.
Ready to start offering consumers high-quality supplements? Contact us today to learn why you should partner with us for supplement contract manufacturing.
Frequently Asked Questions
A dietary supplement manufacturer is a company that produces dietary supplements on behalf of another company while allowing the company to sell the supplements using its branding. Most dietary supplement contract manufacturers typically handle product formulation, research and development, and production.
Working with a supplement contract manufacturer allows you to leverage the manufacturer's production experience and expertise, resulting in cost savings, expedited fulfillment times, and enhanced product quality.
When vetting supplement manufacturers, consider their experience and expertise, regulatory compliance, and services offered. Also, consider their ability to meet your evolving needs, customer service and pricing.
Partnering with a contract manufacturer with low minimums can allow you to produce supplements without requiring considerable initial capital. This can enhance your cash flow, enabling you to set aside funds for other core aspects of your business, such as marketing and branding.
To guarantee that your supplements meet high standards, partner with a manufacturer that holds certifications from reputable organizations like the FDA, USDA, or NSF.
Additionally, verify that the manufacturer follows Good Manufacturing Practices (GMP) and conducts third-party testing to ensure the safety, potency, and purity of the supplements. Transparent communication about quality control processes and regulatory adherence will help you avoid legal issues and provide consumers with products they can trust.
