Trends in Contract Manufacturing

by Eric Munson | September 1, 2026

The latest advancements and innovations for contract manufacturers and private labelers.

According to Grand View Research, the global dietary supplement contract manufacturing market size is projected to reach $121.2 billion by 2030, growing at a compound annual growth rate (CAGR) of 12.6 percent from 2025-2030.1

Contract manufacturers offer international market expertise and support. They can assist dietary supplement companies with navigating international regulations, addressing cultural preferences, and adapting products to local markets, the report said.

The market is rising due to growing consumer demand for health and wellness products, regulatory support and increasing brand outsourcing. There are also growing technological advancements, such as 3D printing, nanoencapsulation and artificial intelligence (AI)-driven formulation development, according to the report.

The industry is also driven by breakthroughs in delivery systems, ingredient stability and formulation techniques. Companies are developing systems for better absorption, precision fermentation for sustainable ingredient production and smart coatings to improve nutrient release, the report said.

Why Is Contract Manufacturing Important?

According to Melissa Hollingsworth, head of commercial & business development at Vantage Nutrition (Chadds Ford, PA), contract manufacturing is more than just producing a product, it is also about protecting brands.

Consumers don’t necessarily distinguish between the brand and the manufacturer behind the product. If there is a quality issue, regulatory concern or supply disruption, the brand’s reputation is on the line, she explained.

“That is why selecting a contract manufacturing partner should be based on much more than cost or production capacity,” she said. “Companies should evaluate a manufacturer’s quality systems, regulatory expertise, technical capabilities and track record of consistently delivering safe, compliant products.”

Hollingsworth added a strong CMO also serves as an extension of its customer’s organization, providing transparency, proactive communication and guidance through the increasingly complex regulatory environment.

“At the end of the day, trust is earned through consistent execution. The best contract manufacturers don’t just make products, they help their customers protect their brands, maintain consumer confidence, and support long-term business growth,” she said.

Product and Innovation Trends

According to Grand View Research1, the largest segment for the contract manufacturing category is proteins and amino acids. There is growing 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 acids for their fitness goals, muscle recovery and overall well-being.

The demand for plant-based and vegan protein supplements is growing due to various factors, such as ethical considerations, environmental concerns and dietary preferences. This growth is expected to fuel adoption of contract manufacturing services to save costs and increase efficiency, according to the report.

The fastest market growth, however, will be multivitamin, multi-mineral and antioxidant supplements. One of the key factors is inadequate nutrient intake or specific dietary restrictions. Multivitamins, multi-minerals and antioxidants are seen as essential components of a balanced diet that can help bridge nutritional gaps, according to the report.

According to Hollingsworth, product trends tend to focus on “hot ingredients,” but contract manufacturers should be focused on creating value.

As the supplement industry continues to expand rapidly, consumers are looking for products that are backed by science, manufactured with complete transparency and delivered in innovative formats. Innovation is no longer limited to just ingredients—it now spans formulation, dosage format, manufacturing, quality systems and consumer experience, Hollingsworth explained.

“From a contract manufacturer’s perspective, we’re seeing growing demand for advanced dosage forms and personalized (and condition specific) nutrition,” she said.

Packaging Advancements

Sustainability is one of the biggest innovation drivers in pharmaceutical and nutraceutical packaging, but the conversation has shifted beyond replacing one material with another.

Today, manufacturers are looking at the entire life cycle of packaging—from material selection, pack design, manufacturing efficiency, transportation and end-of-life impact.

“One of the strongest trends is lightweighting, where packaging is redesigned to use less material without compromising product protection or regulatory compliance,” Hollingsworth said. “Smaller blister formats and optimised pack designs reduce material consumption while also improving packing density, enabling more efficient transportation and lower associated carbon emissions.”

There is also a growing demand for alternatives to traditional materials such as PVC (polyvinyl chloride).

“The industry is moving toward a more holistic approach to sustainable packaging, one that combines smarter materials, intelligent design and digitally enabled manufacturing to reduce environmental impact without compromising quality, patient safety or performance,” Hollingsworth said.

“As a contract manufacturer, many of our packaging decisions are driven by our customers, what we are seeing is a strong trend away from rigid packaging toward flexible packages (bags, sachets, sticks, etc). Delivery methods are moving toward single serving (sticks, pouches, etc.) packed in either bags or cartons,” said Tom Ullrich, chief supply chain officer at Vitaquest International (West Caldwell, NJ).

Delivery Systems

Dosage and delivery formats are also a major concern for consumers.

According to Grand View Research1, the demand for tablets has been increasing due to convenience, ease of use and long shelf-life. Recent advancements in tablet technology have made it possible to product tablets with improved disintegration, dissolution and bioavailability. Tablets are well-established and are also widely recognized by numerous regulatory agencies.

The segment for gummies and chewables is also growing rapidly, driven by increasing demand for more palatable forms of dietary supplements. Consumers are looking for products that are both effective and enjoyable to consume.

Gummies provide a more fun and flavorful way to incorporate vitamins, minerals and other nutrients into one’s daily routine. Contract manufacturers are increasingly investing in gummy supplement offerings to cater to the growing demand, according to the report.

According to Hollingsworth, unique dosage formats not only differentiate products on the shelf, they also enable ingredients to have maximum performance.

The right delivery system protects ingredient integrity, improves consumer experience and helps consumers realize the benefits a formulation was designed for.

“Advanced dosage forms, such as delayed-release capsules and beadlets, and combination products (capsule-in-capsule, beadlets or tablets in capsules, side-by-side dual chamber capsules), are providing brands with innovative approaches to targeted solutions,” Hollingsworth said.

Clean Label and Sustainability

The clean label and sustainability movement has evolved significantly over the span of several decades. It was initially focused on avoiding genetically modified ingredients and artificial additives but has expanded to a larger expectation centered on transparency and trust.

Although there is no regulatory definition of “clean label,” consumers expect products to have simple, familiar ingredients, minimal processing and clear labeling.

“Today, clean label and sustainability are becoming closely linked. Consumers no longer judge products solely by what has been removed, such as artificial colors, preservatives or synthetic additives, but also by how responsibly they have been developed and manufactured. They want products that are better for both personal health and the environment,” Hollingsworth explained.

“Clean label has been influencing the products we are producing, for example our customers have been moving away from tablets in favor of formulas and delivery methods with less filler materials,” Ullrich said. “Sustainability has been on the rise both requested by our customers and driven by our internal initiatives on packaging, working with our key suppliers as we work to meet changing regulations.”

In North America, the focus remains heavily on removing synthetic additives and genetically modified ingredients.

According to Hollingsworth, consumers want familiar ingredient names, plant-based materials, organic certification when applicable and greater transparency on sourcing and manufacturing. For example, within the capsule sector, there is a growing preference for plant-based HPMC capsules over traditional gelatin capsules.

“Ultimately, clean label is no longer simply about removing ingredients from a formulation. It represents a broader philosophy of transparency, responsible sourcing and sustainable innovation,” she said. “For manufacturers, this means considering not only what goes into a product, but also how it is produced, packaged and communicated to consumers. Those companies that successfully combine clean formulations with demonstrable sustainability credentials will be best placed to meet the expectations of increasingly informed consumers.”

Supply Chain

The supply chain is also a major concern for contract manufacturers.

“The supply chain is a constant challenge with many changes, from tariffs to supply disruptions, to price volatility. As a [contract manufacturer], we are directed by our customers many times to source materials from specific suppliers, other times we can manage the material source, but we are still buying a great many materials from all over the world, which is a challenge,” Ullrich said.

There are many variations of these ingredients used in supplement formulations and many suppliers of them, agreed Hollingsworth.

“Supply chain plays a critical role in finding qualified suppliers and products; ensuring ingredients are efficacious, pure and safe. In addition to the vast number of ingredients available, most of them are sourced from all over the world, making logistics and security of supply extremely important,” Hollingsworth said.

Bringing Quality Products

According to Hollingsworth, successful contract manufacturers won’t necessarily be the largest facilities, they’ll be the partners who provide scientific expertise, regulatory support, innovative dosage forms and uncompromising quality to help brands bring products to market.

“Ultimately supplement brands are successful only if they deliver an effective product, one that does what it is intended to do,” Hollingsworth said. “And consumers are happy to share their opinions. I carve out time every week to read consumer reviews of supplements on the market so that I can share that with our employees and my friends in the industry. And more importantly, understand how, as a contract manufacturer, we can improve the products we are making.” NIE