These days there is a widespread use of dietary supplements among adults of all ages. There is a heightened interest in preventive health care among the ageing population. It is for this reason that the sale of herbal supplements, vitamins and minerals have surged. The question however that comes up here is what the cost of manufacturing these supplements is. Make sure that you get products from the best Best nutraceutical manufacturers in India.
The third party manufacturing can be quite a cost effective way that helps you get the nutraceuticals manufactured. This allows the companies to focus on their core business. The third-party manufacturers can also have their equipment and expertise that will allow them to manufacture products at a very reasonable price. The manufacturers buy ingredients in bulk and it is for this reason that they are able to reduce the costs of their products. Moreover, the third party manufacturers also can also be in the forefront of innovation. This provides access to the latest technology, formulations and ingredients.
The cost of the third party manufacturers might vary depending on the manufacturer and the product. There are some manufacturers in India who offer you 14 INR per Bottle, 2500INR per box or 9500 INR per kilo. It is true that third parties.
Actual Cost of Manufacturing supplements
If you are planning to start your own supplements or vitamins line, the information given below will help you better understand the hidden cost of manufacturing the products. Let us start with the investment that is required for starting this business. You can start your business with 4, 50,000 INR to start your business. If you start with 800000 INR, that will be all the more better. With 4, 50,000, you will get around 150 units of supplements, a website and professionally designed labels.
Transparency is not always inexpensive
According to the estimates of a reputed third-party testing company, about one quarter of the health supplements are adulterated or diluted with ingredients that are not mentioned on the label. So how do you ensure that your shelves have good quality products only? As a business owner, it is highly recommended that you opt for a company that is FDA registered, NSF certified and GMP certified. Moreover, it is important that you choose a manufacturer who will be able to provide you with an analysis certificate for each of the batches that will prove which ingredients are in each batch. Though these manufacturers are not very affordable, the quality of the products that they offer are quite good.
Among the Nutraceutical Manufacturers who meet this criteria, there are a few of them who do not accept less than 150 units ordered. If you have around 800000 INR, you will be able to order a large amount initially and this will help you meet the higher initial orders of the manufacturer.
Another important thing that needs to be mentioned here is that the business owners should not try to be economical with the cost of the label designing. The reason for this is that most of the consumers choose the products that have a good packaging. Therefore, it is important that the product has a professionally crafted label. It is important to ensure that you do not compromise with the ingredients. Though the process of verification might be expensive, it is worth investing.
Read also: What are the quality control standards for nutraceutical third-party manufacturers?
Factors that influence the cost of the supplements
When you are manufacturing dietary supplements and vitamins, it is important that you balance between quality and profitability. To achieve this, it is important that you grasp the factors that affect the manufacturing costs of the supplements.
Given below is a list of the factors that supplement the pricing:
- Sourcing ingredients and the formulation
The formulation is the most important aspect of the long term success of a supplement. When the ingredients are combined in the right way, it would enhance the effectiveness and also encourage the continued use by the customer. The custom formulations can however vary significantly in the manufacturing costs and largely depends on the chosen ingredients and the dosages. The ingredients that are trademarked have a higher pricing, at times these come with a supportive research for the claim substantiation. The generic versions, though might be affordable but these lack supporting studies. If you opt for clinically relevant doses, that’s the best however, it can be expensive. On the other hand, if you use low dosages might claim support. Therefore, you will have to carefully decide how you will balance the act of determining how many high end ingredients in the right doses will be able to afford to include in your supplement.
- Regulatory Compliance and Testing
The regulatory testing and compliance are very important part of the process of supplement manufacturing. These can increase the overall manufacturing costs. Though these might increase the cost however it ensures that your consumers are able to get good quality products.
- Manufacturing equipment and technology used
The manufacturing equipment and the technology might impact the supplement costs. For example, if you opt for the less popular delivery forms like soft chews, oral strips etc, there is specialised equipment required and the production has to be on a larger scale. These will increase the costs and raise the risks especially producing tens and thousands of units especially for the initial run of a new product.
- Labelling and the manufacturing costs
Packaging holds a very important place in attracting the attention of the consumers. The attractiveness and the sustainability of the packaging can impact the perception of the consumer significantly.
- Marketing and the distribution expenses
There are also expenses related to the marketing and the distribution of the product. If you want to sell the products on platforms like Amazon, Flipkart etc, you will have to include the ingredients of the supplements in the label. This will have some upfront testing expenses.
Conclusion
The supplement market is quite strong. It is growing and large. The health stores have been witnessing an annual growth of 4.5%. The online vitamin and the supplement sales have also experienced an annual growth of 12%. The rise of the supplement market offers excellent opportunities for the Nutraceutical Manufacturers in India as well as the retailers to cash in a robust growth centre.