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4 Ways CDMOs Help Nutraceutical Companies Grow

CDMOs' expertise and synthetic chemical manufacturing abilities can help nutraceutical companies bring dietary ingredients and supplements from the lab to the market.

Image of vitamins and oils

Fueled by increasing consumer awareness of the health benefits of nutraceuticals, the U.S. market for nutraceuticals is expected to experience significant growth, reaching a projected value of $163.15 billion by 2032. This is part of an international trend, with the global nutraceuticals market forecasted to achieve a CAGR of 9.95% from 2024-2032, bringing it to an estimated value of $976.74 billion by 2032.

Nutraceuticals and dietary ingredients—such as probiotics, folic acid, and fish oil—are supplements with potential health benefits that include promotion of biological process that protect against chronic disease, sustaining healthy aging, and supporting the body's structure and function.

As nutraceutical companies leverage this growth opportunity, many are turning to experienced contract development and manufacturing organizations (CDMOs) that specialize in fine chemicals.

How can a CDMO help nutraceutical companies grow?

By design, CDMOs serve as partners that facilitate product development and manufacturing, enabling companies to strategically outsource those parts of their business so they can focus on distribution, marketing and branding.

Here are four ways a CDMO can help your nutraceutical company grow:

  1. Less capital investment. For nutraceutical companies in the start-up phase—and even those that are more advanced—working with an experienced CDMO gives you access to established manufacturing and testing infrastructure. ‘Renting the kitchen’ for product development requires less capital investment than building out your own laboratory and manufacturing space.
  2. Facilitate regulatory compliance. CDMOs are set up to comply with federal and international regulations related to food and drug manufacturing, taking the burden off your internal teams.
  3. Manufacturing expertise. Instead of being extracted from natural sources, many nutraceuticals are being produced synthetically for a more consistent product of high quality and purity. Likewise, many traditional vitamins and minerals are being modified through synthetic chemistry based on claims that they can be made more bioavailable or efficacious. CDMOs can provide both the infrastructure and the expertise to help you scale up and produce the ingredients.
  4. Navigate development cycles. As nutraceuticals become more complex, the development process closely parallels the pharmaceutical development cycle that CDMOs are already adept at navigating.

Finding the right CDMO to partner with

For nutraceutical companies looking to outsource the development and manufacturing of their ingredients, consider a CDMO like Grace’s Fine Chemical Manufacturing Services (FCMS), whose facilities are well equipped to handle a future where nutraceutical manufacturing resembles pharmaceuticals. Grace’s two North American FCMS sites in South Haven, MI and Tyrone, PA work collaboratively with our customers on FDA-regulated products and have a proven track record in commercial-scale manufacturing. As nutraceuticals increasingly overlap with pharmaceuticals, expect more partnerships between nutraceutical companies and experienced fine chemical CDMOs to follow.

Ready to explore how Grace’s contract development and manufacturing capabilities can help your nutraceutical company scale up? Contact us today.