Nutraceutical Contract Manufacturing Services Market

The global Nutraceutical Contract Manufacturing Services Market was valued at 120.6 Million in 2022 and is projected to reach a value of 275.05 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 12.5% between 2023 and 2030.

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Contract manufacturing is when two businesses arrange to produce parts or goods over a predetermined period. Manufacturing outsourcing is similar to outsourcing personnel in enabling businesses to compete in markets they couldn't before. The global Nutraceutical Contract Manufacturing Services market is expected to register a higher CAGR during the forecast period. The nutraceutical industry is predicted to gain more benefits from CMOs over the projection period, including decreased overhead costs, better shipping alternatives, and extensive lab testing. Also, the market is stimulated by CMOs' increased production efficiency and low cost.

For instance, based on the information provided on the website by Akums Drugs & Pharmaceuticals Ltd, one of the Better Third-Party Contract Manufacturing Units in India, advancement with minimal investment, effectiveness in expense and managerial staff, operational and operational efficiency enhancement serve as benefits of working with third-party contract manufacturers. The availability of cutting-edge technology, the expanding number of contract manufacturing businesses in the area, and rising consumer health consciousness are some of the factors predicted to fuel the expansion of the global Nutraceutical Contract Manufacturing Services market.

Additionally, the expansion of the Nutraceutical Contract Manufacturing Services market is anticipated to be further fueled by the development of regionally unique pharmaceutical and food sectors. For instance, the manufacturer and distributor of health, nutritional, and cosmetic products, Star Combo Pharma, announced in June 2022 the inauguration of their new 7,000-square-meter manufacturing facility in New South Wales, Australia. The facility, chosen after receiving a total bid of USD 7.5 million, would offer 30,000 square meters of manufacturing floor area.

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Economic Insights

Several financial analysts and economists made the forecast that, if it hadn't already happened, the majority of countries throughout the world would be experiencing a recession soon. On the other hand, the worldwide downturn is anticipated to become even more severe as 2022 draws to a conclusion and 2023 gets underway. Studies predict the United States will enter a recession in the first half of 2022. This is likely to occur as a result of the tight labor market. The prolonged war between Russia and Ukraine has decreased the probability of an economic recovery in many nations after the epidemic that was caused by the pandemic. It is anticipated that most of this monetary load will be shouldered by the economies of developed and emerging nations in Europe and Central Asia. The volatility of energy prices will continue to affect economies worldwide, leading to a slowdown in economic activity throughout 2023.

Top Market Trends

1. Increasing Influence of Nutraceuticals: The global population's growing desire for a healthy lifestyle may have been the pandemic's silver lining. Nutraceuticals are at the forefront of all new trends, activities, and consumption patterns that are overthrowing previous configurations as human living styles change. Contract manufacturers can validate novel discoveries and evaluate whether they can be effectively manufactured when employed, along with the required infrastructure for feasibility studies. For instance, Saipro, a contract manufacturer of nutraceutical products with headquarters in India, offers a complete solution. The business offers comprehensive services covering everything from product creation to commercial manufacturing to product packaging and delivery.

2. Upcoming Green Revolution: Climate change is a major concern. Almost one-third of the world's greenhouse gas emissions are caused by manufacturing. As a result, businesses are changing to low- or carbon-emitting industrial processes and altering their operational plans. Environmental issues have become important due to a shift to sustainable practices and the pursuit of carbon-neutral operations. Producers should also prepare for rising consumer demand for green products. The nutraceutical industry as a whole wants to lead the way in this area. Today's global customers know these issues and are concerned about how businesses plan to achieve sustainability and carbon neutrality. More than 67 percent of respondents agreed with carbon labeling on products, according to a survey by the Carbon Trust.

Market Segmentation

The global Nutraceutical Contract Manufacturing Services market can be categorized into Dosage Form, Product, and Region. Based on Dosage Form, the market can be categorized into Tablets, Capsules, Liquid Oral, Powder in Sachet/Jar, Gummies, Energy Bars, and Other Suitable Forms (Diskettes). Additionally, based on Product, the market can be further segmented into Dietary Supplements, Proteins & Amino Acids Supplement, Weight Management and Meal Replacer Supplement, Multivitamin, Multi-Mineral, and Antioxidant Supplement, Omega Fatty Acids, and Functional Food & Beverages (Inclusive Of Energy Drinks, Re-Constitutional One Shot Powder). Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on the Dosage Form

Tablets to Accommodate Largest Market Share Owing to a Cost-Effective Nature

The global Nutraceutical Contract Manufacturing Services market is expected to be dominated by the segment of tablets. The tablet is still a very popular dosage form in the nutraceutical, pharmaceutical, and food supplement sectors, so it is anticipated to maintain its dominance over the forecast period, even though Nutraceutical CMOs offer a variety of dosage forms to their customers. These benefits include cost-effectiveness. The energy bar segment will grow with the fastest-growing CAGR during the forecast period. The market is fueled by the industry's growing demand for energy bars. Also, the future growth of the business will probably be boosted by the growing number of new product launches and ongoing research on novel chemicals. For instance, in 2018, Bodybuilding.com introduced its line of protein crunch bars under its private label, which comes in two flavors: cookies and cream and chocolate peanut butter.

Based on Product

Functional Foods and Beverages to Occupy Largest Revenue Owing to Rising Demand for Product

The functional foods and beverages segment will dominate the Nutraceutical Contract Manufacturing Services market during the forecast period. The segmental value will increase due to the growing demand for functional beverages and meals due to their health benefits. Growing consumer demand is another factor supporting the market, eventually driving demand for functional foods and drinks and contract manufacturing services for nutraceuticals in the upcoming years. The COVID-19 epidemic, which increased the intake of nutritional supplements and functional foods and beverages, also contributes to the rise in demand for these products. For instance, 31% of consumers increased their supplement use, and 29% increased their intake of functional foods and beverages, according to the Functional Food & Beverage 2020 Survey by the Hartman Group. As a result, nutraceuticals have built a substantial market presence, which has increased the need for Nutraceutical Contract Manufacturing Services to keep up with the expanding demand.

Based on Region

Asia Pacific to Lead Global Sales Owing to its Manufacturing Dominance

The global Nutraceutical Contract Manufacturing Services market is expected to be dominated by the region of Asia Pacific. Because many nations, including China, India, Japan, South Korea, and Australia, have a high demand for it, regional growth is expected to expand. Due to its sizable population, high healthcare spending, and rising demand for nutraceuticals, North America was the second-largest geographical segment, accounting for over 20% of the worldwide market volume in 2022. Furthermore, the demand for nutraceuticals has grown as chronic diseases become more prevalent. Regional players like Ashland, NUTRIVO, and Gemini Pharmaceutical are anticipated to boost market expansion significantly. Additionally, established industry leaders are extending their reach through new alliances, enabling the company to use their distribution networks to enter new markets. For instance, a distribution and investment agreement was signed in January 2022 between Impact BioMedical, Inc. (a division of Document Security Solutions Inc.) and Nano9, a contract manufacturer of nutraceuticals.

North America is expected to grow with the fastest-growing CAGR during the forecast period. The growth is anticipated to increase significantly throughout the predicted time due to the numerous important firms in the area. These firms are concentrating on growing their manufacturing facilities to meet the increasing demand for medicines and medical devices. Ultimately, this will fuel the region's pharmaceutical and medical device industry.

Competitive Landscape

Private players operating at the regional level can be found in the fragmented market. Businesses in the market use tactics like mergers and acquisitions to increase their regional and national reach. To fulfill the rising need for customized and individualized dietary supplements, businesses are launching Nutraceutical Contract Manufacturing Services in addition to investments and acquisitions.

The key players in the global Nutraceutical Contract Manufacturing Services market include - Ashland Glanbia PLC (Ireland), Herbalife International of America Inc. (U.S.), Biotrex Nutraceuticals (India), Martínez Nieto (Spain), Menadione (Spain), Nutra-Science Labs (U.S.), NUTRIVO (U.S.), American Health Foundations Inc. (U.S.), Gemini Pharmaceutical (U.S.), Biovencer Healthcare Pvt. Ltd. (India), Rain Nutrience (UK) among others.

Recent Market Developments

· September 2022: The purchase of Nutraskills was announced by Biofarma Group. The acquisition will allow Biofarma Group to increase its market share and presence in the upcoming years.

· December 2021: Contract manufacturer Hearthside Foods completed the acquisition of the assets from Weston Foods' Ambient Division. 43 new locations in the US, Canada, and Europe have been added to Hearthside's network due to the acquisition.

Segmentation of the Global Nutraceutical Contract Manufacturing Services Market