The Growth of Nutraceuticals

Nutraceutical companies scale up manufacturing with CDMOs

Nutraceuticals—products as varied as probiotics, folic acid, and fish oil—are supplements with potential health benefits which may include protecting against chronic disease, and supporting the structure and function of the body. 

The market for nutraceuticals, valued at $418 billion in 2020, is expected to grow 9% annually until at least 2028. This impressive growth creates opportunities for connections between nutraceutical companies and experienced contract development and manufacturing organizations (CDMOs) that specialize in fine chemicals.

This is where an established CDMO like Grace’s Fine Chemical Manufacturing Services (Grace’s FCMS) comes in, according to Brett Reynolds, its global business director. The company offers custom food and dietary supplement development and manufacturing on scales ranging from tens of kilograms to tons of product.

Complementary strengths

Nutraceutical companies, especially start-ups, work with CDMOs for many of the same reasons that the pharmaceutical industry does: “Renting the kitchen” by working with a CDMO for product development requires less capital investment than building laboratory space. CDMOs are also set up to comply with federal and international regulations related to food manufacturing. 

“It makes sense for nutraceutical companies to outsource the development and manufacturing of the chemicals involved, so that they have room to play to their strengths in distribution, marketing, and branding,” Reynolds says. “CDMOs complement their talent bench.”

An evolving field

Nutraceuticals are becoming more complex molecules, and companies are increasingly demonstrating efficacy through clinical research, Reynolds notes. This development process parallels the pharmaceutical development cycle and requires sophisticated CDMOs to facilitate commercialization. 

With Grace’s FCMS’s focus on synthetic organic chemistry, its facilities are well equipped to handle a future where nutraceutical manufacturing resembles that of pharmaceuticals, Reynolds says. “Grace’s FCMS sites work collaboratively on FDA-regulated products and have a proven track record in commercial-scale manufacturing,” he adds. As the field of nutraceuticals continues to overlap with pharmaceuticals, expect companies in the field to turn to CDMOs, like Grace’s FCMS, that have decades of manufacturing experience in both markets.