The boom in nutraceuticals is creating a surplus of new outsourcing opportunities, according to the BCMPA (Association for Contract Manufacturing, Packing, Fulfilment & Logistics).
The nutra market is now estimated to be valued at $700-850bn worldwide. However, it remains highly fragmented, with thousands of ingredient suppliers, contract manufacturers and consumer brands vying for a dominant global position.
This valuation is forecast to exceed $1trn within the next decade as demand for preventative healthcare, personalised nutrition and healthy ageing continues to increase.
In the UK alone, the market is expected to more than double, growing from approximately $31.2bn to $68.6bn by 2035.
The BCMPA believes that this sustained growth will lead to significant demand among start-ups for outsourcing solutions in NPD, contract manufacturing and packaging.
It cited the inaugural ‘Pitch the Co-Packers' competition, held at this year’s Packaging Innovations & Empack, as evidence of the growing appetite to source ingredient suppliers, machinery and outsourced contract manufacturers and packers within the UK.
At the show, three of the four finalists were start-up brands from the nutraceuticals sector, with the winner (Renata Sá, founder of HANGOV) being 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.
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.
The Association added that the nutraceutical sector is increasingly being shaped by start-ups and early-stage businesses looking to respond quickly to changing consumer needs.
Functional foods, wellness supplements, sports nutrition products, healthy ageing solutions and beauty items come in various formats, such as liquids, powders, capsules and gummies, along with multiple packaging options, including stick packs, blisters and bottles.
However, this variety means many brands face challenges in transitioning from concept to commercial launch, including issues with formulation, compliance, packaging, production, fulfilment and scalability.
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 lack the manufacturing assets, technical teams, or supply chain resources needed to scale.
For BCMPA members operating in food, pharmaceutical and nutraceutical manufacturing and packaging, this growth in the nutra market is creating new opportunities to support ambitious brands seeking both technical capabilities and a faster route to market.
The Association said that looking to outsourcing partners can help reduce risk, improve speed to market and allow brand owners to focus on product development, marketing and growth.
Contract manufacturers and packers can bridge the gap between concept and commercialisation 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."
To help nutraceutical brands with scaling up to commercial launches, the BCMPA has a search facility to help brand owners identify suitable outsourcing partners, with more than 200 members across a wide range of requirements,
The Association said that these partners can help with a wide range of requirements, from pilot runs and small-batch launches to larger-scale production and retail-ready volumes.
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.
