The global nutraceutical market is entering a new phase of unprecedented growth, creating significant outsourcing opportunities across the health and wellness sector, reports the BCMPA, the Association for Contract Manufacturing, Packing, Fulfilment & Logistics.
Valued at an estimated US$700–850 billion worldwide, the market remains highly fragmented, comprising thousands of ingredient suppliers, contract manufacturers and consumer brands, with no single company holding a dominant global position. As demand for preventive healthcare, personalised nutrition and healthy ageing solutions continues to accelerate, the global nutraceutical market is forecast to exceed US$1 trillion within the next decade. In the UK alone, the market is expected to more than double, growing from approximately US$31.2 billion today to US$68.6 billion by 2035.
And it is this rise in activity which is leading to significant demand from nutraceutical start-ups to find outsourcing solutions. As entrepreneurs look to respond quickly to changing consumer demand, many are turning to outsourcing partners to help them with NPD, contract manufacturing and packing, and final customer delivery to help bring their products to market efficiently and at scale.
The strength of this trend was underlined at the inaugural ‘Pitch the Co-Packers’ competition, held at this year’s Packaging Innovations & Empack, where three of the four finalists were start-up brands from the nutraceuticals sector. The winner was Renata Sá, founder of HANGOV, a new wellness brand offering a Brazilian-style supplement designed to support the body before alcohol consumption.
In addition, the inaugural Making Nutraceuticals Show took place in April, alongside the Making Pharmaceuticals and Distributing Pharmaceuticals exhibition. It demonstrated the growing appetite to source ingredient suppliers, machinery and outsourced contract manufacturers and packers within the UK.
The nutraceutical sector is being shaped by start-ups and early-stage businesses looking to respond quickly to changing consumer needs. Functional food and drinks, wellness supplements, sports nutrition, healthy ageing and beauty products, all require a wide range of product formats including liquids, powders, capsules, gummies and tablets, covering an array of packaging formats including stick packs, blisters, sachets, doy packs, bottles, pots, tubs as well as direct-to-consumer subscription models.
However, for many of these brands, moving from concept to commercial launch presents a range of operational challenges, including formulation, compliance, packaging, production, fulfilment and scalability.
Emma Verkaik, CEO of the BCMPA, said: “We are seeing strong entrepreneurial activity in nutraceuticals and wellness supplements, and that creates real opportunities for BCMPA members with the expertise and infrastructure to support these brands. For young businesses, the right outsourcing partner can make the difference between a good idea and a product that is ready for market.”
For BCMPA members operating in food, pharmaceutical and nutraceutical manufacturing and packing, the market’s growth is opening up new opportunities to support ambitious brands looking for both technical capability and a faster route to market. By providing flexible capacity, specialist expertise and established infrastructure, outsourcing partners can help reduce risk, improve speed to market and allow brand owners to focus on product development, marketing and growth.
These challenges can be particularly acute for start-ups as many are built around founder-led innovation, fast-moving consumer trends and niche opportunities, but do not have the manufacturing assets, technical teams or supply chain resources needed to scale. Contract manufacturers and packers can bridge that gap by offering services such as product development support, liquid and powder filling, labelling, compliance and regulatory guidance, warehousing, e-commerce fulfilment and logistics.
Emma Verkaik added: “This is an exciting, dynamic and fast-moving sector – one where outsourcing can help brands get to market quicker. Whether a start-up needs support with manufacturing, packing, fulfilment or e-commerce, BCMPA members can provide the experience, flexibility and practical know-how to support the next stage of growth.”
As more nutraceutical brands and entrepreneurs move from concept to launch, the BCMPA’s search facility is helping brand owners identify suitable outsourcing partners from the 200 strong membership, across a wide range of requirements, from pilot runs and small batch launches to larger scale production and retail-ready volumes.
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