Nutraceutical Contract Manufacturing Services Market Size, Share & Trends Analysis Report By Dosage Form (Tablets, Capsules, Liquid Oral, Powder In Sachet /Jar, Gummies, Energy Bars), By Product, By Region And Segment Forecasts, 2023 - 2030

Report Overview

The nutraceutical contract manufacturing services market size was estimated at USD 133.34 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.04% from 2023 to 2030. With increasing benefits from CMOs in the nutraceutical sector, such as lower overhead costs, better shipping options, and thorough lab testing, the market is expected to expand over the forecast period. Furthermore, the market is encouraged by CMOs' improved reliability and affordable production. 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 efficiency enhancement serve as benefits of working with third-party contract manufacturers.

Factors such as the increasing awareness of health consciousness among consumers, availability of advanced technologies, and the rising number of contract manufacturing companies in the region are expected to drive the growth of the overall nutraceutical contract manufacturing market. Additionally, the development of the region-specific pharmaceutical and food industries is expected further to fuel the growth of the nutraceutical contract manufacturing market. For instance, in June 2022, Star Combo Pharma, a manufacturer, and distributor of health, nutritional, and beauty products, reported opening their 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 million.

Dosage Form Insights

Based on dosage form, the market is segmented into- tablets, capsules, liquid oral, powder in sachet/jar, gummies, energy bars, and other suitable forms (diskettes, etc.) With a market revenue share of over 20% in 2022, tablet dosage forms dominated a huge proportion of the market. While Nutraceutical CMOs offer a number of dosage forms to their customers, other than the various benefits, such as cost-effectiveness, the tablet is still a very popular form in the nutraceutical, pharmaceutical, and food supplement sectors, therefore it is anticipated that it will maintain its dominance over the forecast period.

Furthermore, the energy bar segment is anticipated at a fast CAGR of over 12% where the market is supported by the rising demand for energy bars in the fitness industry. In addition, the increasing number of new product launches and ongoing research on novel ingredients will likely boost industry growth in the coming years. For instance, in 2018, Bodybuilding.com launched its own private labeled line of protein crunch bars available in two flavors: chocolate peanut butter and cookies and cream.

Additionally, the market is supported by the increased quality of solutions provided by various contract manufacturers in the industry. For instance, Glanbia plc is a notable player which provides a wide range of customized products, and its bars deliver functional protein with enhanced texture, taste, and nutrition.

Product Insights

Based on product insights, the market is segmented into two types - dietary supplements and functional food and beverages. Functional Foods and Beverages accounted for the majority of market revenue in 2022. The market is anticipated to expand at a CAGR of over 12% during the forecast period due to the rising demand for functional beverages and foods because of their health advantages. Furthermore, the market is being supported by growing consumer demand, which will eventually result in a rise in demand for the production of functional foods and beverages and a rise in demand for contract manufacturing services for nutraceuticals in the coming years.

The COVID-19 pandemic, which boosted supplement and functional food/beverage consumption, also contributes to the growing demand for the production of dietary supplements, functional foods, and beverages. For instance, according to the Hartman Group's Functional Food & Beverage 2020 Study, 31% of consumers consumed more supplements, and 29% took more functional foods/beverages. As a result, nutraceuticals have been able to create a sizable market presence, which has increased the need for nutraceutical contract manufacturing services to keep up with the growing demand.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of over 40% in 2022, due to its strong demand from various countries such as China, India, Japan, South Korea, and Australia. North America was the second-largest regional segment, accounting for over 20% of the global market volume in 2022, due to its large population, high spending on healthcare, and an increasing demand for nutraceuticals. Moreover, the rising prevalence of chronic diseases in the region has increased the demand for nutraceuticals. The presence of regional players, such as Ashland, NUTRIVO, and Gemini Pharmaceutical, is expected to support the market growth further.

Furthermore, existing market players are expanding their reach by establishing new partnerships, allowing the company to utilize other companies' distribution networks to penetrate new territories. For instance, Impact BioMedical, Inc. (a subsidiary of Document Security Systems Inc.) and Nano9, a contract manufacturer of nutraceuticals, partnered up in January 2021 through a distribution and investment agreement. Through this agreement, Nano9 could increase its market presence by using the expanding direct marketing distribution network of Impact BioMedical in the Asia Pacific and the U.S. Growing companies penetrating the market with such strategic initiatives are anticipated to assist the region-specific market development over the forecast period.

Key Companies & Market Share Insights

The market is fragmented, with the presence of private players operational at the regional level. Companies in the market adopt strategies, such as mergers and acquisitions, to enhance their presence at the regional and country levels. In September 2022, Biofarma Group, announced the acquisition of Nutraskills. With the acquisition Biofarma Group will be able to expand its market presence and improve its revenue share over the coming years. Furthermore, in December 2021, contract manufacturer Hearthside Foods completed the Weston Foods Ambient Division Asset acquisition. The acquisition has expanded Hearthside's network to 43 locations in the US, Canada, and Europe. Some of the prominent players in the global nutraceutical contract manufacturing services market include:

• Ashland

• Glanbia plc

• Herbalife International of America, Inc

• Biotrex Nutraceuticals

• Martínez Nieto

• Menadiona

• NUTRASCIENCE LABS

• NUTRIVO

• American Health Foundations, INC.

• Gemini Pharmaceutical

• Biovencer Healthcare Pvt Ltd

• Rain Nutrience

Nutraceutical Contract Manufacturing Services Market Report Scope

Global Nutraceutical Contract Manufacturing Services Market Report Segmentation

This report forecasts revenue growth at global, regional, & country levels, and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global nutraceutical contract manufacturing services market report based on dosage form, product and region:

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

  • Dosage Forms Movement Analysis & Market Share, 2022 & 2030

    • Tablets

    • Capsules

    • Liquid Oral

    • Powder In Sachet / Jar

    • Gummies

    • Energy Bars

    • Other suitable forms (Diskettes, etc.)

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

  • Product Movement Analysis & Market Share, 2022 & 2030

    • Dietary Supplements

      • Proteins & Amino Acids Supplement

      • Weight Management and Meal Replacer Supplement

      • Multivitamin, Multi-Mineral, and Antioxidant Supplement

      • Others (Omega Fatty Acids, etc.)

    • Functional Food and Beverages (Inclusive of Energy Drinks, Re-Constitutional One Shot Powder, etc.)

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE