Nutraceuticals CDMO Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Dosage Form, By Service, By Company Size, By Region, Competition

The Global Nutraceuticals CDMO Market achieved a valuation of USD 34.09 Billion in 2022 and is poised for impressive growth at a projected CAGR of 7.87% and is expected to reach USD 53.45 Billion by 2028. Nutraceuticals CDMO, which stands for Contract Development and Manufacturing Organization, refers to companies that provide development and manufacturing services to nutraceutical firms. Nutraceuticals are products that combine food and pharmaceutical components, offering health benefits beyond basic nutrition. CDMOs, on the other hand, cater to pharmaceutical, biotechnology, and nutraceutical companies by assisting in the development, manufacturing, and occasionally even marketing of their products. CDMOs bring specialized expertise, facilities, and resources to support clients across various stages of the product lifecycle, from research and development to manufacturing and distribution.

Key Market Drivers

• 1. Growing Demand for Nutraceutical Products Drives Market Growth: The surging demand for nutraceutical products significantly fuels the expansion of the Global Nutraceutical CDMO market. As consumer interest in nutraceuticals continues to rise, there's a heightened need for innovative and differentiated products. Nutraceutical companies often require specialized expertise to develop and formulate new products that align with consumer preferences and health requirements. Nutraceutical CDMOs offer research and development capabilities to assist companies in creating novel formulations, leading to a more extensive variety of nutraceutical products in the market. The high demand for nutraceutical products necessitates the scaling up of manufacturing capacities, and Nutraceutical CDMOs have the infrastructure and expertise to efficiently produce larger quantities of products, catering to both established and emerging nutraceutical brands.

• 2. Increasing Prevalence of Chronic Diseases Drives Market Growth: The rising incidence of chronic diseases plays a significant role in propelling the Global Nutraceutical CDMO market. Chronic diseases such as cardiovascular diseases, diabetes, obesity, and neurodegenerative disorders are often linked to lifestyle factors and poor dietary choices. Consumers are increasingly proactive about their health, seeking preventive measures to mitigate the risk of chronic diseases. Nutraceutical products, with their potential health benefits, are being viewed as part of preventive healthcare strategies. Nutraceutical CDMOs play a pivotal role in developing and manufacturing these products to meet the growing demand. Nutraceuticals are increasingly recognized for their potential therapeutic benefits in managing chronic diseases, and Nutraceutical CDMOs collaborate with pharmaceutical and nutraceutical companies to create specialized products targeting specific chronic conditions.

• 3. Advancements in Research and Development Drive Market Growth: Progress in research and development (R&D) significantly contributes to the growth of the Global Nutraceutical CDMO market. R&D advancements lead to the discovery of novel ingredients, formulations, and delivery systems for nutraceutical products. Nutraceutical CDMOs collaborate with nutraceutical companies to translate these innovations into market-ready products. R&D advancements also result in a deeper understanding of the health benefits and mechanisms of action of various nutrients and bioactive compounds. Nutraceutical CDMOs facilitate the integration of scientific research into product development, enabling companies to create evidence-based nutraceuticals that are clinically validated and substantiated. These advancements allow for a better understanding of specific health concerns and conditions that nutraceuticals can address, leading to the development of targeted health solutions. Additionally, R&D enhances knowledge of individual nutritional needs based on genetics, lifestyle, and health status, enabling the creation of personalized nutrition solutions.

Key Market Challenges

• 1. Quality Control and Assurance: Quality control and assurance pose significant challenges to the Global Nutraceutical CDMO market due to the complexity and critical nature of ensuring consistent product quality and safety. Nutraceutical products are subject to regulatory standards that ensure their safety, efficacy, and accurate labeling. Compliance with diverse and evolving regulations in different regions can be complex and time-consuming. Nutraceutical CDMOs must stay up-to-date with changing regulations and adapt their processes accordingly. Ensuring consistent quality and potency across batches is challenging, particularly for complex formulations containing multiple active ingredients. Variability in ingredient characteristics, such as natural ingredients susceptible to seasonal variations, can complicate the process. Nutraceutical CDMOs must carefully select suppliers and establish stringent quality standards to minimize variability.

• 2. Ingredient Sourcing and Supply Chain Disruptions: Ingredient sourcing and supply chain disruptions can present significant challenges to the Global Nutraceutical CDMO market. The reliability and consistency of ingredient suppliers can vary, affecting the quality and availability of essential components for nutraceutical formulations. Many nutraceutical ingredients are derived from natural sources and may be subject to seasonal variations in availability and quality, impacting consistent product formulations. Geopolitical factors, trade restrictions, and natural disasters can disrupt the supply chain and impact ingredient availability. Ensuring the quality and authenticity of sourced ingredients is crucial, requiring rigorous testing and verification processes.

• 3. Environmental Sustainability: Environmental sustainability poses a significant challenge to the Global Nutraceutical CDMO market as the industry seeks to balance business growth with responsible environmental practices. Nutraceutical ingredients often have ecological impacts, such as deforestation and habitat destruction, and may threaten local ecosystems and biodiversity. The industry also generates waste, including packaging materials and byproducts. Reducing environmental impact through sustainable sourcing practices, responsible waste management, and eco-friendly packaging alternatives is essential. Additionally, energy consumption and greenhouse gas emissions from manufacturing processes must be addressed through energy-efficient technologies and renewable energy sources.

Key Market Trends

• 1. Rise of Personalized Nutrition: Personalized nutrition is a significant trend in the Global Nutraceutical CDMO market, influencing how nutraceutical products are developed, formulated, and manufactured. This trend involves tailoring dietary and supplement recommendations to an individual's unique health needs, genetic makeup, lifestyle, and preferences. Nutraceutical CDMOs play a critical role in developing customized formulations that align with the specific requirements of each consumer. This trend requires CDMOs to possess the expertise to create diverse and flexible formulations that can be adjusted based on individual factors. Personalized nutrition relies on comprehensive health assessments, biomarker analysis, and genetic testing to determine an individual's nutritional needs, and CDMOs may collaborate with testing laboratories and healthcare professionals to incorporate these data into the formulation process.

• 2. Dosage Form Dominance: In 2022, the tablets and capsules segment dominated the Nutraceuticals CDMO market and is expected to continue expanding. Tablets and capsules are popular dosage forms due to their convenience, ease of consumption, and precise dosing capabilities. They offer stability and protection for enclosed ingredients, safeguarding against environmental factors and contributing to longer shelf life. This segment is projected to experience the highest compound annual growth rate (CAGR) from 2023 to 2030.

• 3. Manufacturing and Packaging Services: Manufacturing and packaging services are pivotal in the Nutraceuticals CDMO market. Manufacturing services encompass the production of nutraceutical products, while packaging services involve design, labeling, and packaging for retail or distribution. Effective packaging is crucial for product differentiation, consumer communication, and regulatory compliance.

• 4. Mid-Size CDMOs: Mid-size nutraceutical CDMOs are agile and responsive, offering personalized services and building strong client relationships. They often specialize exclusively in the nutraceutical industry, enabling deep expertise in formulation, manufacturing, regulatory compliance, and market trends. Mid-size CDMOs are known for innovation and adaptability, quickly responding to market shifts and introducing

unique nutraceutical products.

• 5. North America Dominance: North America, particularly the United States, leads the Global Nutraceuticals CDMO Market due to a mature market, strong consumer acceptance of dietary supplements, and well-established regulatory frameworks. North American consumers' increasing focus on health and wellness drives the demand for nutraceutical products, leading to a greater need for CDMO services.

Key Market Players

• Catalent Inc.
• Lonza Group AG
• NUTRASCIENCE LABS Inc
• Robinson Pharma, Inc.
• Health Wright Products, Inc.
• Innovations in Nutrition + Wellness
• INPHARMA S.p.A.
• Aenova Group
• NutraPakUSA
• SFI Health Pty Ltd.

Report Scope:

In this report, the Global Nutraceuticals CDMO Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Nutraceuticals CDMO Market, By Dosage Form:

• Tablets & Capsules
• Powder
• Softgel
• Others

Nutraceuticals CDMO Market, By Service:

• Product Formulation and Development
• Manufacturing and Packaging
• Research & Development (R&D)
• Regulatory Compliance
• Others

Nutraceuticals CDMO Market, By Company Size:

• Small Companies
• Mid-Sized Companies
• Large Companies

Global Nutraceuticals CDMO Market, By region:

• North America
• United States
• Canada
• Mexico
• Asia-Pacific
• China
• India
• South Korea
• Australia
• Japan
• Europe
• Germany
• France
• United Kingdom
• Spain
• Italy
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive Landscape

• Company Profiles: Detailed analysis of the major companies present in the Global Nutraceuticals CDMO Market.

Available Customizations:

• Global Nutraceuticals CDMO Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).