The last decade has witnessed explosive growth in India's nutraceutical industry leading to a greater awareness of health, spending capabilities and increase in preventive healthcare measures. This trend shift has opened an enormous window of opportunity for businesses looking to leverage the nutraceutical segment. Nonetheless, producing high quality nutraceuticals at scale is challenging due to the need for substantial capital, technical know how, regulatory barriers and infrastructure. In this blog, we will discuss the third party manufacturing nutraceuticals and the reasons by which it is growing.
What is Third Party Manufacturing in Nutraceuticals?
The term third party manufacturing or contract manufacturing refers to outsourcing production to an expert manufacturer. In the case of nutraceuticals, this implies that a brand can independently create and commercially distribute a branded line of health supplements, functional foods and dietary products without the need to invest in manufacturing plant infrastructure. Third Party manufacturing nutraceuticals in India covers raw material sourcing and formulation development through to production, quality control, packaging and compliance with regulations. This, of course, enhances the brand owner’s ability to concentrate on marketing, sales and distribution activities. Third party manufacturing is on the rise due to the nature of its model and the benefits of using it as a business option.
How it offers cost efficiency and growth flexibility?
1. Minimal Capital Investment
Setting up infrastructure for a nutraceutical manufacturing plant requires advanced machinery and skilled labor at and investment of sorts. Third party manufacturing nutraceuticals in India provides a practical alternative. Outsourcing production to an established contract manufacturer allows businesses to launch product lines without incurring equipment and factory setup expenses, compliance processes, and best of all with significant time and capital savings too.
2. Lower Operational Costs
Prospecting new employees in-house and setting up a dedicated nutraceutical unit brings along new recurring expense inflation. This includes technician salary, maintenance of machinery, procurement of raw materials, procurement of electricity and water and waste management services. If left unregulated, these overheads will potential lead to reduced profit margins.
Companies attain:
Third party manufacturing nutraceuticals offers a deemed economical solution that optimizes all above mentioned operations which aids:
- Reduced full-time staff hiring overhead.
- Zero expenditures towards quality control processes.
3. Faster Time to Market
A novel nutraceutical product is likely to take months or years to launch even when managed in-house. Setting up factory infrastructure, creating product formulations, running trials while complying to all regulations adds to extra processing time.
4. Unrestricted Expandability
The flexibilty to scale is one of the largest benefits of third party manufacturing nutraceutical in India. You can increase production as your business expands without needing to physically invest in expansion infrastructure.
Third party manufacturers are able to:
- Adapt to small production runs for niche health products.
- Quickly adjust to large scale production for national launches.
They can seamlessly help you grow based on market needs.
5. Access to Research and Development
In India, many prominent third party nutraceutical manufacturers provide private labeling, customized formulations and advanced product development. This helps smaller brands gain access to:
- Comprehensive research and development.
- Trend based formulations such as; plant based proteins, probiotics or collagen.
- Turnkey product concepts, ready for launch.
The ability for smaller businesses to compete with bigger businesses is fueling the growth of third party nutraceutical manufacturing in India.
6. Concentrate on Brand Building and Marketing
Operational processes in manufacturing have people and equipment that need management. If you outsource this portion of the business, then brand marketing, targeting your audience and improving sales becomes easier.
Final Thoughts
If you want to partner with a company which is proficient in third party manufacturing nutraceuticals in India, Ambico Ayurvedic Health Care proudly supports over a hundred active clients, proving their value as a third party manufacturing company. They deal with precise Ayurvedic therapies and herbal medicine, devising therapy based systems for optimal complete well being. Various formulations aim at enhancing constriction of naturally defective muscles, improving digestion, achieving homeostasis, restoring health and addressing specific health concerns. Clients are compliant with the treatment prescriptions and achieve reliable, favourable results.