In India, the nutraceutical and dietary supplements sector provides a fertile landscape for new age entrepreneurs to launch new brands and innovative products. This is further fuelled by the growing interest and awareness in active aging, healthy eating habits, clean label products and brands getting bolder and transparent. As per the statistics published by Grand View Research; the nutraceutical contract manufacturing services market in India is expected to reach a projected revenue of US$ 33,247.7 million by 2030. A compound annual growth rate of 14% is expected of India nutraceutical contract manufacturing services market from 2024 to 2030. In the recent years, India has emerged as the most sought after destination for nutraceutical contract manufacturing and dietary supplement manufacturing.
If you are a brand looking to enter the Health and Nutra market with good quality supplements, read further to understand the nuances of nutraceutical contract manufacturing and what should you look for when partnering with a nutraceutical contract manufacturer or a CDMO (Contract Development and Manufacturing Organisation). Here we breakdown the top 7 qualities to look for in selecting the right nutraceutical contract manufacturer in India.
1. Expertise in nutraceutical industry
A reliable nutraceutical contract manufacturer or a CDMO has years of experience in developing proven formulations, working with different ingredients, trusted sourcing partners, insights on short lived and time tested consumer demands, packaging and logistical optimisation. When looking for the right partner, check for –
- Years of industry experience
- Number of brands launched in domestic or international markets
- Availability of ready formulations and ability for customisation
- Industry certifications and compliances
- Client testimonials and case studies
- Choice of vendors for sourcing, packaging, testing etc.
Pro Tip : A manufacturing partner who allows you to focus on building your Brand while they handle the nuances of product development is a GREEN Flag. By undersatnding your target audience, the problem you are trying to solve or the gaps your are trying to fill; they will deliver a fully finished product ready to go on shelf.
2. Certifications & compliance with global industry standards
A reliable nutraceutical contract manufacturer should comply with food safety regulations and global industry standards. Please check for the following certifications :
- FSSAI (Food Safety and Standards Authority of India)
- GMP – Good Manufacturing Practices
- Applicable ISO standards
- Halal and/or Kosher
- US – FDA
- EU Compliance
Pro Tip : Certifications and compliances are non-negotiable. They make your products eligible for sale in your markets of interest. Every market may have different requirements, choose a partner who has the right compliances for your markets of interest.
3. Product development and R&D capabilities
Innovation plays a key role in the success of your brand, but so does efficacy. The product needs to work and do what it claims. Key factors to consider:
- Lots of ready formulations to give you a starting points
- Ability to experiment with new ingredients, and study their impact on the final product
- Capability to balance the aroma, flavour and texture of the final product for consumer appeal while innovating
Pro Tip : Product safety, efficacy and stability are important for your product to perform in the market. A truly capable partner will innovate without compromising these fundamentals.
4. Flexible manufacturing capacities
The right CDMO should be able to meet both small and large scale production requirements. This will help you in product development, pilot launches and market testing and finally scaling the production to meet growing demands. Key questions to ask for different product formats:
- Availabity of lab setup of initial product development
- Ability to manufacture small batches with precision and quality assurance
- Minimum order quantities for full-scale production
- Manufacturing lead times
- Storage and inventory management capabilities
Pro Tip : A manufacturer having capabilities to manufacture different delivery formats like powders, tablets, capsules, gummies, liquid beverages will help you launch new SKUs.
5. Transparent sourcing and quality practices
Choosing the right ingredients and adopting quality guidelines and food safety standards is the key to making a supplement that works, shows results and pushes your customers to come back looking for more. The right CDMO will follow safe practices at each stage of product development and manufacturing. Look for a manufacturer who offers following reports for finished products as well as ingredients :
- Certificate of Analysis – COA for each batch of finished products.
- In-house or third-party testing support for microbial counts, heavy metals, contaminants or additives.
- Traceability of ingredients.
- Documentation for product formulation, manufacturing SOPs, package designs and regulatory to ensure stable and consistent supply of finished product for every batch.
Pro Tip : CDMO who willingly shares the source of ingredients, internal or third-party quality reports for every batch is a GREEN flag.
6. Packaging and design support
Packaging plays a key role in every product and brand’s journey. It is not just about the visual appeal, but also about regulatory and logistical factors. Choose a partner who :
- Designs the packaging to align with your brand guidelines
- Emphasises print proofs and trial runs before rushing into production
- Reviews the packaging from the regulatory lens to ensure all relevant disclaimers, declarations and warnings are mentioned alongwith product and branding information
- Follow best practices to optimise logistics costs and avoid breakages
Pro Tip : A product that works and looks good too is a consumer's delight. Packaging plays an important role in creating the recall value for your product, regulatory compliances and optimising transportation right upto the last mile. A partner who understands this well is a sure GREEN flag.
7. Complete regulatory support for domestic and international markets
A nutraceutical brand impacts masses and their well-being. Every country may have different product safety guidelines. It is crucial for your product’s success to comply and maintain traceability for each SKU being manufactured and sent out in the market. As a brand and a contract manufacturer, it is mandatory to maintain proper documentation and posses valid licences to be legally able to supply the products. Choose a manufacturer who :
- Understands licensing requirements in domestic and international markets
- Is thorough with all documentation
- Guides you to comply with all the necessary regulations
- Performs due diligence at every step before delivering your product
Pro Tip : A successful brand should be ready to go international. A right partner is the one who has all licenses suitable for domestic and international markets.
