Sign This Contract Manufacturer

by Eric Munson | June 3, 2024

Streamlining the manufacturing process for dietary supplements.

For business owners and entrepreneurs, manufacturing can sometimes turn into a daunting task that requires a lot of time, energy and resources. That’s when contract manufacturers join the battle. Regardless of business size, hiring a contract manufacturer allows for a cost-effective and streamlined approach to large-scale dietary supplement and nutraceutical production.

What Is a Contract Manufacturer?

“Working with a contract or private label manufacturer means you put your label on the product while we handle the manufacturing and packaging,” said Luis Giraldy, director at AST Enzymes (Chino, CA). “On the contract manufacturing side, we work with businesses that need help in producing custom formulas using enzymes and probiotics. Private label clients benefit by marketing our expertly formulated blends under their product name.”

According to Sally Gagan, compliance director at Beehive Botanicals (Hayward, WI), contract manufacturers follow the regulations to produce quality compliant products so brands can focus on sales and marketing.

“They are able to utilize the experienced team at a manufacturer to tap into their knowledge to produce their unique formulas without the investment required to become a dietary supplement manufacturer,” Gagan said. “Less overhead to produce a small batch of a new product to test the market but still have a compliant product.”

Patrick Brueggman, president and CEO of Vitaquest International (West Caldwell, NJ), said contract manufacturers oversee all aspects of a project from concept to completion. He added that formulation is just the beginning and Vitaquest assists with delivery format, flavor, color, label claims and active ingredients.

“Being a contract manufacturer means bringing our customers’ ideas to life and helping them put forth a product that meets all food safety and GMP (good manufacturing practice) requirements in addition to label claims,” Brueggman said. “It also means that we help companies that want to break into the supplement industry by offering low and competitive MOQs (minimum order quantities), while supporting established companies with scale-up capabilities.”

Rebecca Goffe, director of operations at Mineralife Nutraceuticals (Colorado Springs, CO) explained integrating custom formulation, manufacturing, packaging and distribution in an all-in-one turnkey solution are some of the primary roles of manufacturers.

“There are many roads to take when developing or improving a product. With decades of combined experience Mineralife helps our customers bring their products to market,” Goffe said. “Beyond this, Mineralife is well versed in current good manufacturing practice (cGMP), industry standards and regulations, label requirements, third-party testing and more.”

Abdul Alkayali, vice president, sales at Certified Nutraceuticals (Pauma Valley, CA) agrees with Goffe that innovation is important. He also agrees with Brueggman that contract manufacturers are the helpers who make new ideas come to reality and bring products to the marketplace.

“We can take an idea and bring it to life in partnership with other innovators in the supplement industry,” Alkayali said. “We have the capacity and drive to service all types of supplement needs on a contract basis for companies who seek quality, exciting new ingredients in the natural and anti-aging market.”

The Important Role

Contract manufacturers are an integral role of the dietary supplement production process. Gagan said contract manufacturers are important because they bring consistency and compliance to industry brands regardless of experience level.

“We can make a product come to life for anyone who has an idea and doesn’t know how to bring it to fruition,” Alkayali said. “Contract and private label manufacturing companies have the knowledge and can make the industry connections that new faces in the landscape are unable to.”

Brueggman agrees with Gagan about the importance of compliance, adding that contract manufacturing “brings a finished product together.”

“From sourcing the ingredients, research and development for feasibility and stability, choosing the ideal packaging for market acceptance and stability, and providing regulatory guidance, it all converges at the contract manufacturing stage,” Brueggman said.

Goffe also agrees with Gagan that compliance and safety are imperative for contract manufacturers. She explained a “trusted partner” ensures the business is not cutting corners and stays up to date with industry trends, law interpretation, label requirements and testing standards.

“If Mineralife doesn’t have the answer, we have a far-reaching network that we can reply on to make sure that you bring safe, effective products to market and are able to sell across many e-commerce platforms including third-party sites, such as Amazon,” Goffe said.

Giraldy added dietary supplement sales are “becoming increasingly niche” and most savvy shoppers can easily figure out the best price on a product.

“Whether you introduce a product as an educator, doctor or even a retail store, you want to maintain your customer base,” Giraldy said. “Private labeling a product means it’s your product and helps ensure your customers’ loyalty.”

A Unique and Varied Business

With varying types and amounts of services available, contract manufacturers need to set themselves apart while also appealing to potential clientele.

Beehive Botanicals has more than 50 years of experience in manufacturing and compliance. According to Gagan, the company offers “low minimums and great guidance” for start-ups and “excellent quality” to established brands.

AST Enzymes is part of a family of companies specializing in enzymes and probiotics, handling everything from raw ingredients to fermentation to finished products. The company has more than 65 years of experience in the nutraceuticals space with seven research and development hubs around the world.

“We also can meet demand on all sizes—from a dozen bottles to a million—and in-house label printing is available for small runs,” Giraldy said. “On the contract manufacturing side, we have a minimum requirement of 100,000 capsules for custom formulas.”

Certified Nutraceuticals is a family-owned and run business that has been supplying ingredients and contract manufacturing for more than 30 years. It focuses primarily on functional ingredients for natural products.

Today, the company has an international network of distributors, wholesalers, manufacturing partners and a team with deep expertise in functional ingredient science and retail marketing, according to Alkayali.

“Our hands-on approach to research and development has resulted in superior new natural ingredients that promote a wide range of health benefits,” Alkayali said. “Research in botanical extracts has resulted in ingredients with extraordinarily high levels of antioxidants that minimize oxidative damage, and our company identified and utilizes new ingredient combinations and optimal molecular weights to maximize bioavailability and bioactivity.”

Vitaquest is unique in that every aspect of a product is customizable. The company sources thousands of unique raw ingredients and has a library of hundreds of flavors. The company also has numerous certifications to meet the diverse needs of its customers, Brueggman said.

“We have an unrivaled ability to craft unique flavors to match flavor systems or to mask tastes that are difficult to hide or undesirable,” Brueggman said. “Our clients can continue to modify their flavor system until it’s exactly the way they want it. They are able to do that thanks to the expert flavorists we have here at Vitaquest, including Robin Rusinko, who is one of only 400 certified flavor chemists in the world today.”

Mineralife believes honesty and transparency matter, especially how communication and customer service are the “heart of any successful relationship,” Goffe said.

“Mineralife goes above and beyond expectations, guiding companies through the process every step of the way,” Goffe said. “We love sharing our industry experience with each and every one of our customers, and that is why they keep coming back!”

Products and Ingredients

Just like with services, contract manufacturers can produce a plethora of products and ingredients depending on their capabilities.

Beehive Botanicals offers numerous product services including grinding, blending, encapsulation, bottling and packaging of capsules, powders and liquids, Gagan said.

AST Enzymes produces digestive and system enzyme products and ingredients, probiotic and synbiotic products, and blends incorporating enzymes, probiotics, prebiotics, vitamins, minerals and herbs, according to Giraldy.

Certified Nutraceuticals is known for its antioxidant and anti-aging products. Its antioxidant portfolio includes Olea25 (a plant polyphenol derived from olive leaves), Pomegranate-Ellagic 70 (pomegranate seeds and ellagic acid) and Reverse-Vine (a blend of red wine, grape cluster stems and grapevine).

“Anti-aging products continue to perform well, and our Telos95 ingredient blend is clinically proven to protect and even lengthen telomeres, the protective endcaps of our DNA that prevent cellular death and protect healthy cell replication,” Alkayali said. “As the market continues to expand to products that help consumers age well, we anticipate that more and more will seek Telos95 for custom products.”

Mineralife maintains a large database of raw materials and components with associated costs so clients’ quotations can be addressed efficiently.

“We have manufactured minerals, vitamins, herbal products, CBD products and (almost) everything in between since being founded in 2008,” Goffe said. “We specialize in powder capsules, but also have plenty of experience in powder tubs, liquid tinctures and mineral products.”

Vitaquest can also produce a variety of products, but specializes in capsules, tablets, soft chews, quick melts, effervescent tablets and powders. The company has humidity and climate control conditions for probiotics and are experts in formulation challenges such as taste, stability and particle size.

“Our experts track the market and are ready to help our clients take advantage of the latest and upcoming trends,” Brueggman said. “Right now, we can produce supplements to support those who are following doctor-supervised weight-loss programs. When people go through these programs, testing has shown that they are losing key nutrients before, during and after they complete the program. The nutritional supplements we create can complement these medically supervised weight-loss programs and ease the discomfort individuals feel during their weight loss journey.”

Trends and Popularity

According to data from ResearchAndMarkets, the global contract manufacturing market was valued at $246.51 billion in 2022 and is expected to reach $512.74 billion by 2030 at a compound annual growth rate (CAGR) of 9.58 percent.

Research from Fact.MR states the global sales of powder dietary supplements (a vital source for the sports nutrition market) will increase from $35.9 billion in 2023 to $75.2 billion in 2032.

Brueggman observed increased demand for biotics, consumer experience, clinically studied ingredients, multipurpose products, scale-up capabilities and superfoods.

“In the past, consumers were taking dietary supplements to address a specific problem they had,” Brueggman said. “During the pandemic, people became more proactive in improving their own overall health, and they started taking more dietary supplements, which has continued, and is why we are seeing the trends I included above. The expectation is that this trend is going to continue for years to come.”

Alkayali said gummies are incredibly popular and show no signs of slowing down. Gagan added women’s health and sustainability are some of the top trends in 2024 and Giraldy added small business owners are turning to private label products to hold onto their niche clientele.

“Certified Nutraceuticals’ ingredients kollaJell Jellyfish Collagen, TendoGuard Joint Care Collagen, Pure Marine Collagen Peptide, and more, are ready to be crafted into a gummy that will not only stand out for being healthier than the competition but will please the tastebuds as well,” Alkayali said. “We offer all-natural, safe food colorings and sweeteners that align with our certified promise of quality and purity.”

Goffe added regulation and the supply chain are two of the most important trends affecting the contract manufacturing sector. Manufacturers and supplement brands continue to navigate compliance and Mineralife likes to stay one step ahead and be up to date with consumer expectations for product quality.

“As for the supply chain, we continue to develop relationships with trusted vendors around the world, stock ingredients as needed and keep a watchful eye on extended lead times to prevent delays in the manufacturing process,” Goffe said. “We know you needed your product yesterday and will do what it takes to get it to you on time.”

Relationships Built

Contract manufacturing is more than just outsourcing production, it’s about building relationships with clients and brands while maintaining safety and compliance.

“We have the highest commitment to purity and quality that can be measured at every stage of manufacturing from ingredient sourcing through extraction and delivery,” Alkayali said. “All of our products meet global food safety standards and good manufacturing practices and ISO compliance [to] ensure product quality and consistency in each batch and every single serving.”

Mineralife boasts a quick turnaround time and account coordinators will assess the proposed project based on the availability of the raw materials and components.

“We will estimate shipping times, testing time and even label proofing times. Because there are so many different factors that determine timelines when manufacturing custom products, we provide turnaround times with the quote,” Goffe said. “Your account coordinator will ask for the timelines you are looking to meet and will be transparent about our ability to meet those timelines. After your first product run, Mineralife loves to partner with our customers on forecasting and reserving space in our schedule ahead of time to ensure you never go out of stock.” NIE