What is supplement encapsulation outsourcing and how does it work? Everything you need to know!

As the demand for supplements continues to grow, many entrepreneurs in the industry opt for supplement encapsulation outsourcing to create and develop their products. This approach is widely used, especially by those just starting their supplement business.

After the COVID-19 pandemic, which boosted e-commerce and increased the demand for supplements, the need for encapsulation outsourcing also surged. Companies sought ways to differentiate themselves in the ever-growing supplement market, offering consumers a wider variety of products.

The truth is that entering the encapsulated supplement market is only possible for most entrepreneurs due to outsourcing. Think about it—if you want to start a supplement business, how would you manufacture your own product?

1 – Developing the formula

The formula of your supplement is what delivers results to your customers. Therefore, it is essential to use high-quality ingredients that provide what your consumers need.

Aligning your customers’ expectations with your product ensures better results for them and, consequently, for your business.

There are two main ways to work with encapsulation outsourcing. The first is through ready-made formulas, where your product goes straight into production after selecting the formulation—this is known as white-label manufacturing.

The second option is custom formulation, where a technical team develops an exclusive formula tailored to your needs. This allows for personalized supplements that deliver specific results for targeted audiences.

2 – Manufacturing the encapsulated product

This is the stage where your supplement moves from concept to reality.

Once the formula is selected or developed, the contract manufacturer begins production. This process includes precise dosing and mixing of ingredients, encapsulation, and packaging preparation.

3 – Labeling the encapsulated supplements

After manufacturing, the encapsulated products proceed to labeling. This step ensures that the product appears as it will be received by the final customer.

It is crucial to work with an experienced designer to create a label that effectively communicates your brand and product benefits.

Remember, investing solely in manufacturing is not enough; your product’s design must also be compelling. Before a customer decides to purchase and consume the supplement, the first interaction happens through the packaging.

Additionally, your label must include all legally required information, such as ingredients, usage instructions, precautions, and any other necessary disclosures based on FDA regulations.

4 – Shipping the encapsulated product

After manufacturing and labeling, your encapsulated supplement needs to be shipped to your storage facility or a third-party logistics (3PL) provider.

Many supplement entrepreneurs choose third-party logistics services to avoid the need for physical storage space and to streamline order fulfillment. The process typically works as follows:

• The contract manufacturer ships the encapsulated supplements to the logistics company.
• The logistics provider stores the products.
• When a sale is made, the logistics company ships the product directly to the customer.

Hiring a specialized logistics company reduces operational costs since there is no need to invest in storage facilities or shipping operations. Additionally, it ensures an optimized process, as the logistics provider leverages its expertise to handle shipping efficiently.

Manufacturing your own supplements would be costly, time-consuming, and even impractical, as it requires a production facility. This is where encapsulation outsourcing becomes essential—it allows you to work with a specialized company that creates and develops your supplement at a much more affordable cost.

Finally, what is supplement encapsulation outsourcing?

Encapsulation outsourcing involves hiring a specialized company to create and develop supplements based on your needs, manufacturing them on demand.

The hiring company pays for the production, packaging, and shipping of their products, making it possible to run a private-label supplement business without owning manufacturing equipment or facilities. The contract manufacturer handles all production processes.

Advantages of outsourcing supplement encapsulation

Outsourcing supplement manufacturing provides numerous advantages for entrepreneurs entering the industry. It is often the most viable option for those looking to establish their own brand.

1 – Cost reduction

Partnering with a contract manufacturer eliminates costs associated with equipment, facilities, and technical staff. The manufacturer already has the necessary infrastructure for supplement production.

2 – Advanced technology and research

A professional supplement manufacturer has access to cutting-edge technology and experienced professionals who conduct research to develop the best possible formula for your product.

By delivering high-quality supplements to the market, you can quickly scale your business and build customer trust.

3 – Regulatory compliance

Launching a supplement in the U.S. requires adherence to FDA regulations and other industry standards. A reliable contract manufacturer ensures that your product meets all legal requirements, allowing you to sell with confidence.

Important! Choose the right supplement manufacturer

Selecting a reliable encapsulation manufacturer is crucial. They must be committed to your product, meet deadlines, and maintain transparency throughout the process.

The reputation and quality of your brand—and your supplements—depend on the manufacturer you choose. Our company has over 15 years of experience in supplement encapsulation outsourcing. Our expert technical team develops high-quality products, and our dedicated sales team is ready to assist you.

If you’re looking for a trusted supplement manufacturer, contact us today!