Are you thinking about starting your own dietary supplement product line? The following are just some of the reasons why 2015 is an amazing time to do so:
Robust Growth. According to Forbes, “One of the fastest growing industries in the world is the nutritional supplement group or more broadly known as Vitamins, Minerals and Supplements, or VMS.” In 2012, the revenue from the supplement industry exceeded $32 billion and it is expected to climb to $60 billion by 2021, according to The Nutrition Business Journal.1
Supplements Have Gone Mainstream. According to Partnership Capital Growth, more than 87 percent of Americans take supplements. Consumers seek supplements to fill the nutritional gaps in their diets and for overall health and wellness.2-3
The Price of Healthcare Is Rising. During the 2008 recession, more people turned to dietary supplements to maintain health and avoid high medical bills, according to a New York Times report. With the uncertainty of government welfare programs like Medicare and Medicaid, more people are looking to find the supplements they need to stay healthy.
Consumer Trends Support Nutritional Supplements. There’s a greater trend towards self diagnosis and making personal health choices. The Hartman Group based in Bellevue, WA, says, “Signs of the consumer movement in “do it yourself (DIY)” medicine, or self-diagnosis and self-treatment, have been building for decades now. Some of the signs have taken form as growth in categories of products such as dietary supplements and home health devices (such as blood pressure meters) while other markers of the DIY health movement are reflected by growth in alternative therapies such as yoga, acupuncture, and massage.”
An Increasing Aging Population. By the year 2030, 20 percent of the American population will be 65+.4 Many of these consumers are aware of the benefits of nutraceuticals and their potential benefits to promote healthy aging. According to Mintel, the aging consumer market is a massive opportunity for the supplement industry.5
Choosing the Right Supplement Manufacturer
Startups can capitalize on all the above and make a niche for themselves in an industry that is growing fast. And getting started with your product line is easier and faster than you might think. All you need is capital, a rough draft of the formula you would like to manufacture, a solid marketing strategy, and most importantly, a reliable manufacturing company to partner with. Here are a few tips on how to choose the right contract supplement manufacturer:
Do They Have a Good Track Record? – Look for a supplement manufacturer who has been in the business for several years and holds a good track record with previous clients. Check if their name shows up in trade shows and if the manufacturer is well-respected by peers in the industry.
Do They Have An Extensive Inventory of Raw Materials? – So many first-time dietary supplement business owners do not realize how important this is. You need to ensure that the manufacturer you choose to work with has an abundant supply of raw materials on hand. Not being able to go to market with your product line in a timely manner because your manufacturing partner ran out of ingredients can cripple your business and irreversibly damage the reputation of your brand.
Do They Manufacture Out of a GMP-Certified Facility? – As the owner of a dietary supplement business, you have an obligation to your customers to ensure the product they bought from you and will eventually ingest has been manufactured in a facility that meets Good Manufacturing Practices (GMP) guidelines mandated by the Food and Drug Administration. Ask them for a copy of their GMP certificate and insist on taking either an in-person or virtual tour of their facilities.
Can They Provide You With a One-Stop Solution? – Manufacturing a high-quality product is only half the battle in this industry. You also need to ensure that it is packaged correctly and looks good once it is ready for purchase. Rather than hiring a separate company to do this for you, check to see whether or not your supplement manufacturer has an in-house graphic design department that can create custom label and packaging designs for your product. They may even be able to design and print product inserts and pamphlets so you can effectively promote your products. In addition to offering graphic and packaging design services, some manufacturers also provide their clients with order fulfillment and drop shipping services so their products can be stored and shipped from one central location.
Additional Items to Keep in Mind – Becoming a dietary supplement business owner is an exciting and potentially a financially rewarding experience. With that said though, you can’t just put any product on the market without abiding by the rules. There are stringent rules regulated by the Food and Drugs Administration (FDA) regarding the manufacturing of dietary supplements. A knowledgeable and experienced contract supplement manufacturer can guide you with:
- An FDA compliant supplement panel. You need to know how you can take advantage of claims that FDA allows and make sure you are not going overboard with any other claims about your product or the ingredients inside.
- Quality ingredients with the correct certificate of analysis. You also need to make sure the source of your ingredients is one you can trust.
- Clever use of packaging to enhance the visual appeal of your product. You may want to use special packaging to attract attention or use an artistic design that stands out from the rest of the market.
If you’re exploring options for a startup, call up a reliable contract manufacturer today and start cashing in on this ever ripe market for supplements.
Author Bio: Kevin Agrawal works at NutraScienceLabs.com. He has been writing article on health and supplements for several years. His area of expertise lies in vitamin and supplement manufacturing industry.