Abstract: Contract manufacturing is becoming a popular strategic tool used by many businesses to improve operations and maintain a competitive edge in the highly competitive pharmaceutical industry. Outsourcing the production of nutraceutical products to specialist manufacturing businesses is known as contract manufacturing, commonly referred to as third-party manufacture or white labelling. This blog will explore the reasons that, in most cases, contract manufacturing is a superior option for your nutritional products.
If you ask anyone with good chunk of experience in launching nutraceutical products, they would likely say that you that nutraceutical manufacturingis quite a unique one.
In the days and weeks preceding a production run, the interactions that take place between the firm or brand owner and its contract manufacturer can make or break the foundation of the path from concept to consumer for the majority of dietary supplement products.
Although no two supplement items are ever created in exactly the same way, there are several things that participants in a manufacturing partnership can expect to happen on both ends of the manufacturing run.
In the end, what separates the most successful supplement contract manufacturing relationships from the most problematic ones is the capacity to identify, assess, and assign accountability for each of these (and other) aspects.
Due to the influence of economic constraints on markets and margins, owners of dietary supplement brands and their manufacturing partners have challenges in lowering costs, streamlining supply chains, surpassing quality requirements, and delivering cutting-edge goods that cater to the health needs and preferences of consumers.
The main goals of every brand owner’s operation should be maintaining quality standards, strengthening supplier networks, and managing tight margins in a competitive market. When manufacturing is outsourced, businesses are still accountable for the quality of the final product, therefore screening suppliers, doing regular checks, and staying in constant contact are crucial for success.
From 2023 to 2030, the global market for contract manufacturing services for nutraceuticals is projected to increase at a compound annual growth rate (CAGR) of 12.04%. In 2022, the market was valued at USD 133.34 billion. Over the course of the projection period, the nutraceutical industry is anticipated to grow because to the growing advantages provided by CMOs, including reduced administrative costs, improved shipping alternatives, and comprehensive lab testing.
The COVID-19 pandemic caused severe disruptions to raw material supplies, coinciding with a surge in demand for immune-supporting nutritional supplements. For example, in the six weeks leading up to April 5, 2020, the United States had a 44% rise in sales of nutritional supplements, according to a December 2021 report released by the National Library of Medicine. According to the same report, multivitamin sales increased by 51% in March 2020, hitting 120 billion units in the United States alone. In a similar vein, during the pandemic, vitamin sales rose by 63% in the United Kingdom and by 40% to 60% in France in comparison to 2019.
Even if it should go without saying, nutraceutical contract manufacturers with relevant experience and who adhere to the most recent norms and regulations in the nutraceutical business should be fully aware of their duties along the supply chain.
The client will ensure the formula of the to-be developed nutraceutical is laid down clearly and then it is the responsibility of the contract manufacturer to make sure the final product meets the established specifications pinpoint. Meeting these requirements frequently entails verifying that the finished product has all of the necessary constituents in the right proportions as well as evaluating raw materials for purity, identification, and efficacy. It should come as no surprise that the manufacturer bears the responsibility for any faults or deviations from the specified product standards found during quality control (QC) and assurance (QA) testing.
The contract manufacturing partner bears the burden of guaranteeing that every element of its facility, together with all SOPs, complies with FDA and GMP regulations.
A comprehensive panel of mandatory QA and safety tests, including but not limited to tests for heavy metals and microorganisms, is mandated by current regulatory standards (per the respective country), in addition to any tests or special certifications that have been requested and included into the specification sheet for the supplement product.
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In many facets of manufacturing, good manufacturing practice, or GMP, is crucial. Transparency, traceability, labelling, and containments are examples of quality assurance challenges that are becoming more and more common. Issues with the production of nutritional supplements and enzymes also stem from trends in API production, such as shorter development durations and more dynamic product life cycles. In any event, since the global supply chain can no longer be oversimplified, there is no substitute for thinking beyond one’s own geographical, industrial, and national limits. Despite its flexibility, risk management in contract manufacturing needs to be the primary focus, covering everything from traceability and clean documentation to product protection and cleaning procedures.
For instance, there are several points of contact between the finished product and the raw material in the synthesis of enzymes, exposing workers to contaminants and health hazards.
This is true for both continuous processes and batch operations, where it is possible to better regulate individual batches of raw materials and GMP-relevant parameters. The growing need for natural raw materials will make microbiological monitoring and hygiene procedures more crucial.
The need for allergen monitoring, halal and kosher production, and contract manufacturing has increased demand for these products. Additionally, there is a larger interest in sustainability in Europe, for instance when it comes to the amount of power needed to create a product under contract.
With a 24.48% revenue share in 2022, the tablets category led the dietary supplements market by dosage type. The most widely used dosage form for nutraceuticals is tablets. They provide accurate dose control, convenience, and simplicity of usage. The familiarity, mobility, and extended shelf life of tablets have led to a high demand for them, according to market trends. Brand owners are turning more and more to Contract Manufacturing Organizations (CMO) to handle the manufacturing of tablets because of the benefits that come with it, including cost-effectiveness, technology and experience, scalability, flexibility, and risk reduction.
CMOs are well-versed in formulation development, production, and quality assurance, and they also have access to cutting edge technologies and a wealth of knowledge. They have expertise with regulatory compliance, modern facilities, and a trained crew committed to producing tablets quickly and in accordance with industry standards.
In the course of the projected period, the gummies segment is expected to grow at a profitable rate of roughly 14.66% CAGR. Particularly among kids and people who don’t enjoy taking medications, the use of nutritional candies and chews has grown in popularity. They taste good, and they’re usually made to look like candy. The increasing demand for more palatable forms of nutraceuticals is propelling the growth of the gummy and chewing gum industry. Nutraceutical products that are tailored to the individual demands of their customers are in high demand. A wide range of customization options, including as ingredient selection, dosage forms, and packaging, are being offered by contract manufacturers in response to this trend in order to accommodate the preferences of specific and local consumers.
Every product that contains supplements is distinct. Every dietary supplement run is distinct in turn. The key to maximizing any production run is frequently good communication between the contract manufacturer and the brand owner. Establishing the obligations of each party up front—and in detail—can and ought to make all the difference.
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Food Research Lab strives for excellence in new Food, Beverage and Nutraceutical Product Research and Development by offering cutting edge scientific analysis and expertise.
