The nutraceutical contract development and manufacturing organization (CDMO) market is witnessing significant growth due to rising consumer awareness about health and wellness, coupled with the increasing demand for dietary supplements, functional foods, and personalized nutrition. Nutraceutical CDMOs offer expertise in formulation development, ingredient sourcing, manufacturing, packaging, and regulatory compliance. This sector caters to a wide range of products, including vitamins, minerals, botanicals, probiotics, and specialty ingredients targeting various health conditions.

Key factors driving the expansion of the nutraceutical CDMO market include advancements in technology, expanding research and development activities, and the adoption of stringent quality standards. Additionally, the trend towards outsourcing manufacturing processes by companies seeking cost-effective solutions and focusing on core competencies contributes to the market’s growth. With the growing emphasis on preventive healthcare and the pursuit of healthy lifestyles globally, the nutraceutical CDMO market is expected to continue its upward trajectory in the foreseeable future. In terms of revenue, the global nutraceutical CDMO market was worth US$ 42.7 Bn in 2023 and is anticipated to witness a CAGR of 8.1% during 2024 – 2034.

Global Nutraceutical CDMO Market Revenue & Forecast, (US$ Million), 2016 – 2034

Overview Global Nutraceutical CDMO Market

Nutraceutical CDMOs provide comprehensive services encompassing formulation development, ingredient sourcing, manufacturing, packaging, and regulatory compliance for a wide range of products, including dietary supplements, functional foods, and nutraceuticals.

Factors such as technological advancements, expanding research and development efforts, and stringent quality standards are fuelling market expansion. Moreover, the trend of outsourcing manufacturing processes by companies seeking cost-effective solutions and focusing on core competencies is further propelling market growth.

Key regions contributing to the growth of the global market include North America, Europe, Asia-Pacific, and Latin America. These regions are witnessing increasing consumer awareness regarding the importance of preventive healthcare, driving the demand for nutraceutical products.

Additionally, strategic collaborations, mergers, and acquisitions among key players in the industry are shaping the competitive landscape, fostering innovation, and enhancing market penetration. With the continuous emphasis on health and wellness worldwide, the global Nutraceutical CDMO market is poised for sustained growth in the coming years.

Tablets & capsules segment in service type dominated the global market during the forecast period. Tablets and capsules are widely favoured by consumers due to their convenience, ease of consumption, and familiarity. Secondly, advancements in formulation technologies have enabled CDMOs to efficiently produce tablets and capsules with precise dosages and enhanced bioavailability, meeting the diverse needs of nutraceutical companies.

Additionally, regulatory compliance and quality control measures are well-established for tablets and capsules, ensuring consistent manufacturing standards. Moreover, the growing consumer preference for supplements in these forms, driven by factors such as portability and shelf stability, further boosts the demand for CDMO services specializing in tablets and capsules, consolidating their dominance in the market.

By services, the product formulation and development segment gained popularity in recent years and is anticipated to grow the fastest over the forecast timeline. The nutraceutical industry continues to expand and diversify, there is a growing demand for innovative product formulations to cater to evolving consumer preferences and health needs. CDMOs specializing in formulation and development offer expertise in creating customized formulations with optimal ingredient combinations and delivery systems, driving their popularity.

Also, with increasing regulatory scrutiny and consumer demand for transparency and safety, nutraceutical companies rely on CDMOs for comprehensive formulation services that ensure compliance with regulatory standards and meet quality benchmarks. Additionally, as competition intensifies in the nutraceutical market, companies seek to differentiate their products through unique formulations, stimulating the demand for CDMOs that offer specialized expertise in product development. These factors collectively contribute to the anticipated rapid growth of the product formulation and development segment in the nutraceutical CDMO market over the forecast timeline.

Mid-sized companies segment by company size accounted for the largest revenue share in 2023 in the global market. This segment’s dominance can be attributed to several factors. Mid-sized companies often possess the flexibility to adapt quickly to market changes and offer personalized services tailored to their client’s needs. Additionally, they typically maintain a balance between cost-effectiveness and service quality, making them attractive partners for nutraceutical companies seeking reliable outsourcing solutions.

Furthermore, mid-sized CDMOs often possess a diverse range of capabilities, allowing them to accommodate various client requirements while providing agility and responsiveness crucial in the rapidly evolving nutraceutical industry landscape. These attributes collectively position mid-sized companies as significant players in driving revenue growth within the nutraceutical CDMO market.

Asia Pacific is expected to emerge as the second-leading region in the nutraceutical CDMO market, following North America. Asia Pacific countries, particularly China and India, offer a vast pool of skilled labor and advanced manufacturing capabilities at competitive costs, attracting nutraceutical companies to outsource their production needs to CDMOs in the region.

Additionally, the increasing prevalence of lifestyle-related health issues and rising consumer awareness regarding preventive healthcare drive the demand for nutraceutical products in Asia Pacific markets. Moreover, favourable government regulations supporting the development of the nutraceutical industry further bolster growth opportunities in the region. As a result, Asia Pacific is expected to witness significant expansion in the nutraceutical CDMO market, positioning it as a key player on the global stage.

Competitive Landscape

The nutraceutical CDMO market features a competitive landscape with key players vying for market share through strategic collaborations, mergers, and acquisitions. Companies focus on enhancing service offerings, expanding geographic presence, and investing in research and development to maintain a competitive edge in the market.

Some of the players operating in the nutraceutical CDMO market are

• Aenova Group
• Akums Drugs and Pharmaceutical Ltd.
• Atlantic Essential Products, Inc.
• B&D Nutritional Ingredients
• BASF SE
• Catalent
• Glanbia Nutritionals
• Iprona AG
• Lonza
• Nature’s Products, Inc.
• Nutraceuticals International Group
• NutraScience Labs
• Nutrilo GmbH
• Pharmavite LLC
• PLT Health Solutions
• ProTec Nutra Ltd.
• Recipharm AB
• Sirio Pharma
• Softigel (A division of Procaps Group)
• Vitakem Nutraceutical Inc.
• Other Industry Participants

Global Nutraceutical CDMO Market: Key Insights 

Global Nutraceutical CDMO Market

By Dosage Form

• Tablets & Capsules
• Powder
• Soft gel
• Liquid Formulations
• Others

By Services

• Product Formulation and Development
• Manufacturing and Packaging
• Research and Development
• Analytical and Testing Services
• Regulatory Support

By Company Size

• Small Companies
• Mid-sized Companies
• Large Companies

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

Report Coverage 

Table of Contents

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Note: This ToC is tentative and can be changed according to the research study conducted during the course of report completion.

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**Exclusive for Multi-User and Enterprise User.

Global Nutraceutical CDMO Market

By Dosage Form

• Tablets & Capsules
• Powder
• Soft gel
• Liquid Formulations
• Others

By Services

• Product Formulation and Development
• Manufacturing and Packaging
• Research and Development
• Analytical and Testing Services
• Regulatory Support

By Company Size

• Small Companies
• Mid-sized Companies
• Large Companies

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

The Niche Research approach encompasses both primary and secondary research methods to provide comprehensive insights. While primary research is the cornerstone of our studies, we also incorporate secondary research sources such as company annual reports, premium industry databases, press releases, industry journals, and white papers.

Within our primary research, we actively engage with various industry stakeholders, conducting paid interviews and surveys. Our meticulous analysis extends to every market participant in major countries, allowing us to thoroughly examine their portfolios, calculate market shares, and segment revenues.

Our data collection primarily focuses on individual countries within our research scope, enabling us to estimate regional market sizes. Typically, we employ a bottom-up approach, meticulously tracking trends in different countries. We analyze growth drivers, constraints, technological innovations, and opportunities for each country, ultimately arriving at regional figures.Our process begins by examining the growth prospects of each country. Building upon these insights, we project growth and trends for the entire region. Finally, we utilize our proprietary model to refine estimations and forecasts.

Our data validation standards are integral to ensuring the reliability and accuracy of our research findings. Here’s a breakdown of our data validation processes and the stakeholders we engage with during our primary research:

• Supply Side Analysis: We initiate a supply side analysis by directly contacting market participants, through telephonic interviews and questionnaires containing both open-ended and close-ended questions. We gather information on their portfolios, segment revenues, developments, and growth strategies.
• Demand Side Analysis: To gain insights into adoption trends and consumer preferences, we reach out to target customers and users (non-vendors). This information forms a vital part of the qualitative analysis section of our reports, covering market dynamics, adoption trends, consumer behavior, spending patterns, and other related aspects.
• Consultant Insights: We tap into the expertise of our partner consultants from around the world to obtain their unique viewpoints and perspectives. Their insights contribute to a well-rounded understanding of the markets under investigation.
• In-House Validation: To ensure data accuracy and reliability, we conduct cross-validation of data points and information through our in-house team of consultants and utilize advanced data modeling tools for thorough verification.

The forecasts we provide are based on a comprehensive assessment of various factors, including:

• Market Trends and Past Performance (Last Five Years): We accurately analyze market trends and performance data from preceding five years to identify historical patterns and understand the market’s evolution.
• Historical Performance and Growth of Market Participants: We assess the historical performance and growth trajectories of key market participants. This analysis provides insights into the competitive landscape and individual company strategies.
• Market Determinants Impact Analysis (Next Eight Years): We conduct a rigorous analysis of the factors that are projected to influence the market over the next eight years. This includes assessing both internal and external determinants that can shape market dynamics.
• Drivers and Challenges for the Forecast Period:Identify the factors expected to drive market growth during the forecast period, as well as the challenges that the industry may face. This analysis aids in deriving an accurate growth rate projection.
• New Acquisitions, Collaborations, or Partnerships: We keep a close watch on any new acquisitions, collaborations, or partnerships within the industry. These developments can have a significant impact on market dynamics and competitiveness.
• Macro and Micro Factors Analysis:A thorough examination of both macro-level factors (e.g., economic trends, regulatory changes) and micro-level factors (e.g., technological advancements, consumer preferences) that may influence the market during the forecast period.
• End-User Sentiment Analysis: To understand the market from the end-user perspective, we conduct sentiment analysis. This involves assessing the sentiment, preferences, and feedback of the end-users, which can provide valuable insights into market trends.
• Perspective of Primary Participants: Insights gathered directly from primary research participants play a crucial role in shaping our forecasts. Their perspectives and experiences provide valuable qualitative data.
• Year-on-Year Growth Trend: We utilize a year-on-year growth trend based on historical market growth and expected future trends. This helps in formulating our growth projections, aligning them with the market’s historical performance.

Research process adopted by TNR involves multiple stages, including data collection, validation, quality checks, and presentation. It’s crucial that the data and information we provide add value to your existing market understanding and expertise. We have also established partnerships with business consulting, research, and survey organizations across regions and globally to collaborate on regional analysis and data validation, ensuring the highest level of accuracy and reliability in our reports.