Challenges of Supplement Contract Manufacturers

Contract manufacturers are meeting market demands through various methods as the dietary supplement and natural products industries recalibrate after the global pandemic.

FREMONT, CA: As the industry continues to recalibrate following the global pandemic, contract manufacturers are finding ways to meet market demands. The industry is still facing many challenges, including ongoing supply chain challenges, critical staff shortages, and inflation. As turnkey solution providers, contract manufacturers understand their value and are adapting to both old and changing customer needs.

Here are some of the ways the contract manufacturing landscape is changing.

Turnkey Transition: Clients expected contract goods manufacturers to deliver finished goods. This may only work for some manufacturers since some only make one product, so they'd have to outsource other forms of production, making them simultaneously manufacturers and distributors. Multiple handovers result in limited testing and verification of the products during this process. Nowadays, companies are increasingly dealing directly with manufacturers.

The broader the contract manufacturer's capabilities within that limitation, the more attractive it will be for marketers to work with them. A good contract manufacturer will assist their clients from conception to completion.

The pandemic: During the pandemic, many contract manufacturers were able to adapt to the pandemic and even meet unique demands. It has been difficult for contract manufacturers to survive and succeed during the pandemic, but they have overcome obstacles. Research and development, as well as capacity, are often the deciding factors. Research and product development companies with a strong presence and a legitimate pilot facility for testing conceptual products before they are scaled up or manufactured have been extremely successful. Due to so many consumer brands' desire to meet market needs and the constraints in supply chains now that we have been in a global pandemic for two years, it is necessary to adjust materials.

Investing in the Future: A thorough process, quality, consistency, transparency, and consistency are key components to safeguarding for the future. But it also takes capital and commitment. It takes time to break into the contract manufacturing industry. Human capital, manufacturing processes, SOPs, quality infrastructure, and manufacturing processes are all crucially important investments in addition to capital investments. Barriers to entry are significant in some respects. Investing in the business through upgraded equipment, innovation, and human capital is a safeguard.

With the fast-moving consumer health industry, adding capacity and improving product quality is essential. Contract manufacturers must follow market data on consumer trends and new technologies to meet current and future customer and consumer needs for long-term investment.