Supplement Contract manufacturing is an established industrial process under which specialized contract manufacturers like TrustWorks make dietary supplements on behalf of mainstream brands. For example, vitamin capsules and mineral gummies sold by brands like GNC and Kroger are made in plants of third-party supplement manufacturers.
This practice allows brands to focus better on marketing activities and saves them the overhead costs of establishing their manufacturing plants. They can better focus on marketing and distribution while leveraging the expertise, facilities, and regulatory compliance capabilities of experienced contract manufacturers who understand the complex requirements of supplement production.
Supplement Manufacturers can provide end-to-end solutions involving, raw material sourcing, formulation R&D, manufacturing, label designing, and packaging. Their clients just pay for this at once and get finished products that are ready to be shipped and sold through online sites and brick-and-mortar stores.
The demand for wellness supplements is increasing at a steady rate, and the global industry is expected to reach $230 Billion in valuation by 2027. To capture this trend, contract supplement manufacturers provide a competitive edge. Let’s learn about it in detail.
How does Supplement Contract Manufacturing Work?
Let’s say you want to launch a health supplement, to do this you’ll need to set up a manufacturing plant, hire management, and a skilled workforce, get certifications and clearance from the federal and state governments, and set up a supply chain for raw material sourcing. Doing this will require huge upfront capital, you might even have to take a loan for heavy machinery.
But what if someone with all these resources can do it on your behalf at a fixed cost? Well, that’s exactly what supplement contract manufacturing involves. In this, you hire a third-party manufacturer who can make supplements on your behalf and ship them to your warehouse. They can also adjust to changes in demand because they work for multiple brands at the same time and have the resources to scale up and down easily.
These contract manufacturers can make all kinds of supplements, including vitamins, minerals, herbal supplements, sports nutrition products, and specialty supplements like probiotics, omega-3 formulations, and customized blends. This arrangement offers many benefits to bands, including reduced capital investment, access to expertise, and faster market penetration.
Advantages of Working with Supplement Contract Manufacturer
Working with contract manufacturers obliterates the need for companies/brands to invest in expensive equipment, facilities, and skilled staff. Instead, they can use the already-established manufacturing capabilities of a contract manufacturer and maintain control over the product formulations, specifications, marketing, advertising, and distribution.
Contract manufacturers also bring valuable experience in regulatory compliance, quality control, and production efficiency. Supplement manufacturers like TrustWorks provide additional services like formulation development, packaging design, raw material sourcing, and regulatory consultation.
The relationship usually starts with a brand providing a formula or working with the manufacturer to develop one, followed by production according to agreed-upon specifications and quality standards.
There’s also a private labeling option, under which the contract manufacturer provides you with already ready-to-ship products. There is no need to develop new formulations with these, you can just put your label and start selling through offline and online channels.
Factors to consider when looking for a contract Manufacturer
It’s important to go through a checklist of essential factors before you get into a partnership with a supplement contract manufacturer. Choosing the wrong manufacturing partner can lead to increased costs, production issues, quality loss, and severe harm to the business trajectory and brand image.
- Expertise & Experience: Experience and expertise in producing supplements on a large scale are crucial along with their track record of regulatory compliance and quality control. Supplement Manufacturers must have appropriate certifications, including cGMP compliance, FDA-certified facility, OSHA compliance, and possibly additional certifications like NSF or organic processing.
- Production Capacity: Next, make sure the supplement contract manufacturer you chose has enough ability to meet your current and projected demands. The quality standards must also align with industry standards and your brand’s unique style and messaging. You must also try to assess the manufacturer’s technological capabilities, innovation potential, and willingness to invest in new equipment.
- Final Checks & Visits: Before you sign the manufacturing contract, do due diligence on your hand. You can do this by visiting the manufacturing facility, doing reference checks with other clients, and a full review of the quality maintenance and batch testing system. Understand that costs can go up and above per unit price to include minimum order quantity, lead time, packaging, formulation, and other additional services.
Legal Bindings & Contracts for safety
To make a successful partnership with a contract manufacturer, there must be clear communication and agreements between both parties. The agreement should cover things like the protection of intellectual property, and clearly defined ownership of formulation and process used to make the product.
Both parties must have clear communication from time to time to keep the operations running smoothly and resolve any production issues due to external or internal factors on time.
There must be regular meetings between quality and deadline assessment teams from both sides to keep updates and progress goals aligned. Timeline management is crucial, with clear expectations for lead times, production schedules, and delivery dates. Most of the successful partnerships also include collaborative planning for future product developments and the possibility of expansion in both domestic and international markets.
Our Final Thoughts
Well, that’s a wrap, we hope you had fun reading about the ins and outs of supplement contract manufacturing. Most new brands who are trying to penetrate the supplement market go with a contract manufacturing route instead of setting up their own plant.
This saves them time and allows them to better align the firm’s resources on strategic marketing and partnerships to expand in different regions.
In simple words, supplement contract manufacturing is a contract between a brand and a third-party manufacturer, where the third-party manufacturer takes full responsibility for making the supplements from scratch to shipment ready phase. Currently, TrustWorks is the most established manufacturer in this space, working for major wellness brands like Kroger, GNC, and Walmart.
