Dietary Supplement Contract Manufacturing Market Size, Share & Trends Analysis Report By Product Type (Proteins & Amino Acid Supplements), By Dosage Form (Tablets, Capsules, Liquid Oral), By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global dietary supplement contract manufacturing market size was estimated at USD 53.17 billion in 2023 and is anticipated to grow at a CAGR of 12.5% from 2024 to 2030. The market growth can be attributed to the increasing demand for dietary supplements, the rising obese population, and a growing number of market players. In addition, increasing benefits associated with outsourcing manufacturing processes and expansion of service offerings by contract manufacturers, leading to the development of new dietary supplements, are driving market growth. As per the Council for Responsible Nutrition (CRN), in the U.S., more than 74% adult population consumes dietary supplements, of which 55% of adults are regular users of dietary supplements.

Dietary supplements, such as multivitamins and minerals, are observed to enhance health & well-being, prevent diseases, and improve the overall quality of life. The growing awareness among consumers about the importance of health and wellness is leading to an increase in the demand for dietary supplements. This awareness is supported by global trends, such as increasing initiatives toward a fit & active lifestyle, growing prevalence of obesity, and rising interest in healthier living. The study conducted by Ipsos European Public Affairs for Food Supplements Europe in 14 EU countries stated that around 93% of consumers consumed food supplements in 2022. This rising demand is a major driver for the contract manufacturing market, as companies seek specialized expertise to develop and manufacture nutraceutical products.

Dietary supplements include several ingredients, such as garcinia cambogia, green tea extract, or Conjugated Linoleic Acid (CLA), which are aimed at supporting weight loss or metabolism regulation. Thus, the increasing prevalence of obesity has led to a global shift toward health consciousness. As per the WHO, globally, one in eight people was suffering from obesity in 2022, and more than 2.5 billion adults were overweight, of which 890 million adults were suffering from obesity. An increase in the prevalence of obesity is creating a higher demand for dietary supplements for weight management

The global market continues to expand with increasing demand from emerging economies. Contract manufacturers offer international market expertise and support. Moreover, they assist dietary supplement companies with navigating international regulations, addressing cultural preferences, and adapting products to local markets. Contract manufacturers with a global presence and knowledge of diverse regulatory requirements provide a competitive advantage to dietary supplement companies looking to expand globally. For instance, in October 2023, Barentz announced an agreement with Ashland to distribute its pharmaceutical and nutraceutical portfolio products in Ireland, the UK, Denmark, Norway, Sweden, Finland, Iceland, Estonia, Latvia, and Lithuania. This agreement broadened the company’s operational capabilities in the market.

Market Concentration & Characteristics

The market growth stage is medium, and the pace of its growth is accelerating. The dietary supplements contract manufacturing industry is characterized by a high degree of innovation. Consumers are increasingly seeking personalized nutraceutical products tailored to their specific health needs and preferences. This demand for customization presents an opportunity for contract manufacturers to offer flexible manufacturing solutions, such as personalized formulations, dosage forms, and packaging options. For instance, Sirio Pharma Co. Ltd., a contract manufacturer specializing in dietary supplements has introduced a gummy product in China with a regional flavor profile. This product combines jasmine & lavender in the outer layer and peach & oolong tea in the filling. Such novel product launches with personalization of ingredients and flavors according to the regional need are anticipated to drive innovation for new dosage forms and products with the greatest growth potential for dietary supplement brands.

The industry is characterized by a high level of merger and acquisition (M&A) activities by leading players. The market is witnessing partnership, collaboration, merger, and acquisition activities as companies seek to expand their capabilities, geographic reach, and service offerings to stay competitive in the evolving landscape. The growing demand for dietary supplements in emerging markets is attributed to rising disposable incomes, urbanization, and increasing health consciousness. Contract manufacturers are expanding their presence in these regions to capitalize on the numerous growth opportunities. For instance, in May 2023, Biofarma Group acquired U.S. Pharma Lab, Inc.—a key CDMO specializing in nutraceuticals, such as vitamins, minerals, probiotics, and premium dietary ingredients.

Regulations play a crucial role in shaping the global market. The market is characterized by a complex interchange of evolving regulations, industry standards, and consumer demands. Regulatory authorities, such as the U.S. Food & Drug Administration (FDA) and the European Medicines Agency (EMA), are involved in monitoring and enforcement of quality control measures to ensure the safety, efficacy, and accurate labeling of dietary supplements. Changes in regulations, such as the implementation of the Dietary Supplement Health & Education Act (DSHEA) or updates to Current Good Manufacturing Practices (cGMP), can significantly impact contract manufacturers' operations and compliance requirements. In the U.S., the Federal Trade Commission (FTC) regulates advertising & marketing claims, and the FDA oversees labeling claims.

The growing adoption of e-commerce platforms and Direct-To-Consumer (D2C) sales channels is transforming the marketing and sales landscape of dietary supplement products. This transformation is reshaping how contract manufacturers operate in the industry. Consumers are increasingly conscious of the ingredients used in dietary supplements, with a growing preference for natural and organic options. This shift in consumer preferences presents an opportunity for contract manufacturers to differentiate themselves by specializing in sourcing and incorporating high-quality natural and organic ingredients into product formulations. They can also ensure compliance with organic certifications and sustainability standards, helping dietary supplement companies meet the demands of environmentally conscious consumers.

The industry has been experiencing significant growth globally due to the increasing awareness of health and wellness among consumers. As companies look to expand their reach and market presence, regional expansion plays a crucial role in capturing new markets and meeting the growing demand for dietary supplements. Regional expansion in the dietary supplements contract manufacturing industry involves establishing operations or partnerships in new geographical areas to cater to local markets efficiently. For instance, in August 2021, Nature’s Value Inc., a contract manufacturer of vitamin and dietary supplements, mentioned that it would create 183+ jobs in Forsyth County, with the expansion of its manufacturing operations in Winston-Salem through an investment of USD 19 million.

Product Type Insights

The protein & amino acids supplements product type segment held the largest share of 34.7% in 2023. The awareness of the importance of maintaining a healthy lifestyle and physical fitness is growing. Consumers, including athletes, fitness enthusiasts, and health-conscious individuals, are seeking protein and amino acid supplements to support their fitness goals, muscle recovery, and overall well-being. The desire to optimize athletic performance and achieve desired body composition is driving the demand for proteins and amino acid supplements. The demand for plant-based and vegan protein supplements is growing due to various factors, including ethical considerations, environmental concerns, and dietary preferences. For instance, plant-based proteins are gaining popularity as alternatives to animal-derived proteins. The growing number of protein & amino acids supplement brands is expected to fuel the adoption of contract manufacturing services for these products to save costs and increase efficiency. In September 2022, Tata Consumer Products (TCP) entered the nutritional supplements market with the launch of Tata GoFit—a plant protein powder containing ingredients, such as peas and brown rice.

The multivitamin, multi-mineral, and antioxidant supplements segment is anticipated to witness the fastest CAGR of 13.4% from 2024 to 2030. The increasing prevalence of dietary deficiencies due to inadequate nutrient intake or specific dietary restrictions is a key factor driving the market growth. There is a growing awareness among consumers about the importance of maintaining overall health and well-being.Multivitamins, multi-minerals, and antioxidants are seen as essential components of a balanced diet that can help bridge nutritional gaps. As a result, consumers are turning to supplements to fill potential nutrient gaps and support their health goals. Soigner Pharma is an Indian pharmaceutical as well as a third-party manufacturing company. Its lineup includes contract manufacturing services for multivitamins, multi-minerals, and antioxidant tablets. On the other hand, American Health Foundation, Inc. offers ready-to-brand private-label vitamin and supplement formulas in various delivery forms and dosages.

Dosage Form Insights

The tablets dosage form segment accounted for the largest share of 28.2% of the overall revenue in 2023. The demand for dietary supplements in tablet form has been increasing due to their convenience, ease of use, and long shelf life. Recent advancements in tablet technology have made it possible to produce tablets with improved disintegration, dissolution, and bioavailability. This has led to an increase in the popularity of tablets as a delivery system for dietary supplements. Tablets are a well-established delivery system for dietary supplements and are widely recognized by regulatory agencies, such as the FDA.

This makes it easier for contract manufacturers to comply with regulatory requirements and ensures that tablets are safe and effective for consumers. For instance, Gemini Pharmaceuticals is a U.S.-based dietary supplement manufacturer specializing in condition-specific formulations and line extensions for customers across the globe. It offers dosage forms, such as tablets and capsules, and applications ranging from cognitive health to Ayurvedic formulations. Its products are FDA registered, routinely audited, cGMP certified, and inspected to 21 CFR Part 211 for dietary supplement manufacturing. The gummies segment is expected to grow at the fastest CAGR of 13.4% from 2024 to 2030.

The market for gummies and chews is growing rapidly, driven by the increasing demand for dietary supplements in more palatable forms. Consumers are increasingly looking for dietary supplements that are not only effective but also enjoyable to consume. Gummies offer a fun and flavorful way to incorporate vitamins, minerals, and other nutrients into one’s daily routine. As a result, manufacturers are investing in expanding their gummy supplement offerings to cater to this growing demand. Contract manufacturers are responding to this trend by offering a wide range of customization options, including ingredient selection, dosage forms, and packaging, to meet individual/regional consumer preferences.

Regional Insights

The North America dietary supplement contract manufacturing market dominated the global industry in 2023 and accounted for a share of 33.4% due to the well-established market, with numerous contract manufacturing companies offering services to brands and businesses. These companies have the necessary infrastructure, regulatory knowledge, and quality standards, to ensure the safety & efficient production of dietary supplement products. The dietary supplements contract manufacturing growth in the U.S. and Canada is a key factor contributing to market growth. In addition, the presence of a vast population across these countries with increased obesity levels & lifestyle-related diseases increased disposable incomes, and shifting trends towards supplements, which offer numerous health benefits beyond basic nutrition, has fueled the market growth.

U.S. Dietary Supplement Contract Manufacturing Market Trends

The dietary supplements contract manufacturing market in the U.S. held a dominant share in the North America regional market. Growing adoption of healthier products & lifestyles has led people to consume more vitamins, minerals, and supplements (VMS) for a holistic approach to their well-being, which is expected to fuel market demand. Consumers are increasingly seeking natural and preventive approaches to maintain their health, which has led to a rise in demand for nutraceutical products. Similarly, growing innovations and launches of dietary supplements in the U.S. are anticipated to fuel market growth. For instance, in July 2022, Sirio Pharma, a nutraceutical CDMO, acquired 80% of Best Formulations, a contract manufacturer of nutraceuticals & dietary supplements based in the U.S. The above-mentioned factors are anticipated to drive market growth over the forecast period.

The Canada dietary supplement contract manufacturing market is expected to witness rapid growth. The country is expected to witness a high product demand as a result of innovative regulatory practices that have built consumer trust around efficacy & safety while allowing for regulatory practices that continue to bolster and stimulate market growth. According to the Government of Canada, 71% of Canadians use natural health products like homeopathic medicines, vitamins & minerals, and herbal products. The availability of nutraceutical products through various retail channels, including pharmacies, health food stores, and online platforms, has expanded significantly in recent years. This increased distribution network creates opportunities for contract manufacturers to produce a wide range of dietary supplement products to cater to the demand across these channels. For instance, in August 2023, Vitux launched a new production facility for dietary supplements in Canada.

Asia Pacific Dietary Supplement Contract Manufacturing Market Trends

The dietary supplement contract manufacturing market in Asia Pacific is expected to witness the fastest CAGR over the forecast period. This growth can be attributed to various factors, such as the growing demand for dietary supplement products from various countries, such as China, India, Japan, South Korea, & Australia, and the constantly improving need for contract manufacturing services to meet the production requirements. In addition, increasing awareness about health & wellness, growing intake of health supplements, changing lifestyles, and a growing geriatric population drive product demand for dietary supplement products. Consequently, this improves the need for contract manufacturing services to meet production requirements.

The India dietary supplement contract manufacturing market has observed significant growth. This can be attributed to a rise in the cases of obesity, demand for nutraceuticals, awareness of health & fitness, increasing disposable incomes, and the geriatric population. Furthermore, the adoption of nutraceuticals is growing at a steady pace in India, especially among the population focused on strengthening immunity. Many people are consuming herbal and nutraceutical dietary supplements as an alternative to conventional medicine. For instance, in February 2022, Amway India launched a range of nutrition supplements in convenient, appealing, and simplified formats, such as jelly strips and flavorful gummies, under the Nutrilite brand

The dietary supplement contract manufacturing market in China is projected to have significant growth. China is a major country for dietary supplement contract manufacturing in Asia Pacific. The market growth is driven by the increasing prevalence of chronic diseases and lifestyle-related health issues, making consumers more conscious about their health. This has led to an increased emphasis on contract manufacturing for developing new, high-quality dietary supplement products that offer unique benefits in reducing the risk of diseases or health conditions.

Key Dietary Supplement Contract Manufacturing Company Insights

Some of the key players operating in the market include Ashland, CAPTEK Softgel International Inc., Catalent, Inc., and Trividia Manufacturing Solutions, Inc.

• Glanbia Plc is a dietary supplement company manufacturing dairy & nondairy products, cheese, and nutritional ingredients. Its product portfolio includes protein bars, buttercream, protein powders, dressings, beverages, cheese, dairy & non-dairy nutritional ingredients, mineral premixes, vitamins, animal feeds, sauces & spreads, and grains & seeds.It operates through a product portfolio of brands, such as BSN, Isopure, Optimum Nutrition (ON), Nutramino, SlimFast, and think! Amazing Grass, Body & Fit, and LevlUp

• NutraScience Labs is a dietary supplement manufacturing service provider offering supplement manufacturing, in-house packaging, labeling, & fulfillment services to supplement brands. It has successfully contracted manufacturing in dietary supplements for 2,300+ supplement brands across the globe. It offers vitamin and supplement manufacturing services to industries like sports nutrition & fitness, digestive support, bone & joint support, weight management, and cognitive health support. The company operates in New York (NY) and has a GMP-certified NSF distribution center in NY

Recent Developments

• In February 2024, Catalent Inc., a global provider of consumer health products, and Novo Holdings announced a merger agreement. In the agreement, Novo Holdings will acquire Catalent for USD 16.5 billion

• In October 2023, Vitaquest International announced the acquisition of the Ashland powder processing facility. The Ashland company’s fluidized bed process technologies will enable particle & powder engineering for the food & beverage and dietary supplement business

• In January 2023, Activ'Inside, a French ingredient expert, planned to invest USD 13.24 million in a contract production facility between Beychac and Caillau, France. By investing in these facilities, the company plans to expedite its development by providing a 360-degree service, ranging from clinically validated ingredients to personalized dietary supplements

• In June 2022, Star Combo Pharma, a manufacturer and distributor of health, nutritional, and beauty products, announced the opening of its new 7,000-square-meter manufacturing facility in New South Wales, Australia. The facility will provide 30,000 square meters of total manufacturing floor space and has been procured for a total bid of USD 7.5 billion

• In March 2022, Ashland launched Nutrapress organic chewable base, designed for chewable dietary supplements. The organic base is a complete system for nutraceutical manufacturers and contains an organic binder, sweetener, flow aid, and lubricant

Dietary Supplement Contract Manufacturing Market Report Scope

Global Dietary Supplement Contract Manufacturing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global dietary supplement contract manufacturing market report based on product type, dosage form, and region:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Proteins & Amino Acid Supplements

  • Multivitamin, Multi-Mineral, & Antioxidant Supplements

  • Weight Management & Meal Replacer Supplements

  • Other Supplements

• Dosage Form Outlook (Revenue, USD Million, 2018 - 2030)

  • Tablets

  • Capsules

  • Liquid Oral

  • Powder In Sachet / Jar

  • Gummies

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait