Emily Navarro, MS, RD Global Marketing Manager Lonza Capsules & Health Ingredients
The nutra numbers don’t lie—the market for supplements is large and growing. For example, 1 out of 4 people worldwide take dietary supplements daily or almost every day,1 and about 77% of consumers have taken a supplement in the past 30 days,2 highlighting the opportunity for nutraceutical brands in the market.
The industry has taken note of these changing times and the opportunities they present—there is no shortage of new ingredients and nutraceutical products for consumers to choose from. The time for innovation is now. But here lies the challenge—with competition fierce, how can brands stand out?
To stand out among the competition, breakthrough nutraceutical products are key—and with the right vision and technical expertise, brands can not only gain consumers’ attention but keep them coming back for more. Here are some ways to drive—and tap into—this growing demand:
Going Holistic
Growing consumer interest in nutraceuticals has been driven, in part, by increased consumer interest in holistic health—the understanding that not only are key health areas inextricably linked, but so is our mental and physical wellbeing. The holistic health trend has been spurred by a variety of factors, including a rise in consumers experiencing health issues—for example with their joints, digestive health, and weight—as well as a heightened awareness of the importance of overall health following the pandemic. As such, more consumers are taking proactive measures to regain a sense of empowerment over their wellbeing. For many, this means turning to nutraceuticals to support their health goals—indeed, 79% of consumers say that taking supplements is important to their overall health.3
An aging global population is also driving demand for nutraceuticals and supplements. With people living longer (this decade has even been labeled the ‘decade of healthy aging’ by the United Nations4) consumers are now looking for ways to stay healthy as they age, such as supporting joint health to maintain their mobility.
These evolving consumer trends offer huge opportunities for supplement brands. But at the same time, brands also need to deliver on consumer preferences. For example, the industry is seeing a growing preference among consumers globally for vegan and plant-based products—in fact, vegan attributes are now an important purchase driver in the supplements market.5 Consumers are also more informed due to online resources, and they want safe, unique, and effective supplements. This challenges nutraceutical brands to create products that deliver on the above and also stand out in a crowded marketplace.
From an initial product idea to point of purchase, there are three key steps brands need to consider when creating their next breakthrough nutraceutical product
1) The right idea
When an idea comes to light, it can be exciting for brands looking to expand their portfolio or enter new markets. But the right idea can only go so far when it comes to developing a new nutraceutical product. There are multiple considerations before an idea can become a reality. Market research is the first step to success. With so many nutraceutical products on the shelves, and even more entering the market every week, brands should first look for gaps in the market when deciding whether to bring forward a new product—asking themselves, for example, does the product already exist? A deep understanding of the target audience is also key—who is the product for? What problem will this new product solve? How should the product be positioned? What consumer preferences need to be considered? Here, concept testing with the target audience demographic can help to further define a new solution, while also providing insight about the market demand.
Once a brand has identified a need for a new product, the role it is going to fill, and its target positioning, the next step is to choose the right ingredient(s). With 92% of consumers wanting a product that’s scientifically proven to work,6 efficacious ingredients that have robust clinical evidence are essential. It’s also important to ensure that the chosen ingredient(s) meets consumers’ dietary preferences in the target market too, such as Halal, Kosher, and plant-based, or a natural, sustainable source.
The delivery of active ingredients also affects a product’s overall success and should be considered early on in the development process. The right dosage form also plays a role, not only to maximize efficacy and support the product’s positioning—for example, a convenient solution for busy parents on the go—but to differentiate the new product from the competition. Capsules are a favored option for nutraceutical products, and still preferred by consumers globally.7 The latest capsule technologies and innovations can help brands create efficacious solutions, even for ingredients that have complex dosage form requirements. For example, acid-sensitive ingredients like probiotics need the right protection during delivery so that they can pass through the acidic stomach environment and reach the small intestine, where they are typically most effective.
Brands can elevate their supplement game even higher by considering the sensory appeal of their product and the overall consumer experience. Flavor and aroma coating technologies— such as a lavender-scented capsule to support sleep—can help maximize appeal, while also encouraging repeat use. Vibrantly colored capsules can also further differentiate a new product.
2) Finalizing the formula
Ideation and product design are the first steps to developing a successful nutraceutical product, but the formulation and dosage form must also be feasible to scale up and manufacture commercially.
There are multiple ways brands can assess the feasibility of their new solution. Testing and refining a formula via benchtop formulation is essential to check for optimal functionality and ingredient compatibility. Prototyping can also help refine the look and feel of the new product, while shelf-life stability testing ensures that the product will remain efficacious for a specified amount of time before it reaches the consumer.
Ensuring the chosen ingredients and dosage forms can be procured from a reputable supplier, and in the quantities and quality required, is also paramount during the product development stage. Here, it’s important to consider the supplier’s quality standards and testing process, ingredient availability and scalability, and any certifications required to meet the desired product positioning such as organic, non-GMO, Kosher, Halal, allergen-free, or sustainability-related claims.
3) Manufacturing
Once the product has been developed and its feasibility vetted, it’s important to ensure that it can be manufactured safely and quickly. Manufacturing a finished product at scale requires a reliable partner with access to global production facilities and on-site experts that are available to support brands every step of the way.
Key considerations when partnering with a manufacturer:
- Comprehensive services: look for a partner that provides a full suite of end-to-end services, for guidance from concept through launch.
- Technical expertise: seek out a partner that brings technical expertise to the table. Product development often comes with challenges that can cost time and money, so brands should make sure there are experts on staff and available to help.
- Scientific credibility: partner with a manufacturer that offers science-backed technology and ingredients. This information is non-negotiable when it comes to making compelling claims that consumers can trust.
- Quality and safety: examine the latest and greatest quality systems for both incoming raw materials and finished products to ensure the best product possible, produced under high safety standards.
- Economy of scale: this refers to the cost advantages of working with large-scale manufacturers, who can often offer increased purchasing power and efficient production capabilities.
- Production timelines: make sure the manufacturer’s production timelines align with expectations and if the brand plans to launch internationally.
- Ongoing support: partner with a manufacturer that will provide support and guidance at every stage of the NPD journey.
Successful Collaborations
Creating a breakthrough nutraceutical is no simple feat. Not only do brands need to consider their target audience and buying habits, dietary preferences and health goals, but they also need to ensure the success of a new product throughout all production stages—from ideation to manufacturing.
Using the process outlined above, brands can turn the spark of an idea into a fully viable nutraceutical product that stands out in an increasingly competitive market. Brands don’t need to go it alone, though—collaborating with the right partner can help maximize the chance of commercial success and get products to market faster.
References
1. Natural Marketing Institute. (2020). Supplements/OTC/Rx Trends US and Global Databases, US.
2. Euromonitor International Health & Nutrition Survey, 2020, n: 21,741 (global respondents)
3. HS Markit (July 15, 2020). Nutraceutical Ingredients, Specialty Chemicals Update Program. (growth rate 2019-2024)
4. World Health Organization, (2022). UN Decade of Healthy Ageing. Accessed at: UN Decade of Healthy Ageing (who.int)
5. The Vegan Society. (2022). Why go vegan? https://www. vegansociety.com/go-vegan/why-go-vegan
6. Statista, 2021. eSports market revenue worldwide from 2020 to 2025, available at: https://www.statista.com/statistics/490522/ global-esports-market-revenue/
7. Natural Marketing Institute. (2020). Supplements/OTC/Rx Trends US and Global Databases, US
About the Author Emily is a registered dietitian with 10+ years of experience in the nutrition industry. She is the global product marketing manager for Lonza Capsules & Health Ingredients.