When it comes to identifying the future of the natural products space, experts in contract manufacturing and private label are on the job, analyzing the markets and consumer surveys to forecast what will be driving sales. So what is in store for the natural and organic space in 2025? We asked top experts to reveal their forecast.

Targeted formulations

"We are seeing more and more companies focusing on ailment specific formulations as opposed to selling more good basic nutrition," shares Paul Licata, President Licata Enterprises, a private label manufacturer for vitamins and food supplements. "This is both a benefit and a bane. Consumers are looking for ways to save money on their overall health and natural methods are coming to the forefront rather than turning to a quicker drug. This provides the vendor the opportunity to reach newer customers wanting specific help in a certain area, who might not otherwise come into their store."

Also on the horizon in the targeted space: "The key emerging trends for 2025 include growth in collagen supplements, pet supplements, sports nutrition, vitamin D, herbal supplements, nootropics, beauty-from-within, and supplements supporting women's health, immunity, and gut health," says Lauren Samot, Commercial Innovation Leader, Vitaquest International. "There's also a rising interest in organic, plant-based, and GLP-1 support supplements, reflecting increased consumer focus on wellness, natural ingredients, and personalized health solutions."

A word of caution when it comes to focusing on the latest health trend or buzzword? Take care note to lose sight of the importance of good overall nutrition. As Licata explains: "The negative part is we see less and less focus on good basic nutrition in the first place. As I always say, some of our formulas are great for specific ailments. But without at least selling them a good multivitamin or other foundational nutrients it's like putting STP in your gas tank. It works great, but you have to have the gas first—i.e., the multivitamin! Our experience is those retailers who private label a good selection of basic vitamins, minerals, etc. as well as specialty products do better. They are better well-rounded, and have more repeat business than those that focus only on the latest and greatest."

The Ozempic effect

"The arrival of Ozempic, which was never approved as a weight-loss medicine but still prescribed for that purpose, has driven a significant increase in demand for off-label use of pharmaceutical drugs, especially those for weight loss," says Ken Tsuchibe, President & CEO of Soft Gel Technologies, Inc. (SGTI), a supplement manufacturer of soft gel encapsulation for vitamin, botanical, nutraceutical and specialty supplements. "The Ozempic effect has notable implications for the dietary supplement industry, particularly in the weight management segment. Since semaglutide drugs like Ozempic and Wegovy produce dramatic results, consumers may develop higher expectations for weight loss supplements. As a result, it will become increasingly important that manufacturers use clinically researched dietary ingredients. Because Ozempic has undesirable side effects—which notably include nausea and food aversion—there is an opportunity for supplement companies to attract new customers by emphasizing the unique attributes of their products, such as natural ingredients and minimal side effects. As a contract manufacturing partner, Soft Gel Technologies can assist our customers in formulating safe and effective weight loss products, including sourcing clinically backed ingredients."

Femtech 

"The rise of femtech—technology and products specifically designed to enhance women’s health and well-being—marks a new era in women’s health and nutrition," says Tsuchibe. "While the dietary supplements industry has long offered products that cater to women’s unique biological needs, there is a lot of room for growth in terms of the range and specificity of products that brands can offer. We’re observing a growing trend among supplement brands to move beyond standard offerings like women’s multivitamin, PMS, and menopause products to develop niche formulas that address all aspects of women’s health, including reproductive, pelvic, uterine, urinary, sexual, bone, brain, and mental well-being. As a full-service contract manufacturer, Soft Gel Technologies looks to assist customers in developing innovative and effective women’s health products from start to finish."

Brands: Considering Working With a CM?

Selecting a fitting partner is vital to success, especially with consumer demand for transparency and information being so high. "Your contract manufacturer is an extension of your company," says Tsuchibe. "You rely on them to ensure your products meet all label claims and are free from contaminants like heavy metals or microbes. If these standards aren’t met, it’s your reputation at risk—not theirs. That’s why the most critical factor in selecting a contract manufacturer is an uncompromising commitment to quality."

Do your due diligence. Adel Villalobos, CEO and Founder, Lief Labs, advises, "To find this partner, it's essential to audit the companies you are considering. Many companies send a professional auditor, however, these individuals tend to be focused on the first type of quality rather than the second. I believe that it’s imperative that a brand send the person responsible for their vision to audit the prospective manufacturer instead, because that person will have a different lens then a professional auditor. Only someone who really knows the brand can determine if the manufacturer has the qualities of someone they can work with. The brand should consider questions like 'Do our communication styles complement each other?' and 'Does the facility give you confidence that your products will be manufactured in a way that you would if you had your own facility?' Another point to consider is if the manufacturer has a philosophy of Quality by Design and Continuous Improvement."

What are some of the characteristics you should be on the lookout for? "At a minimum, a quality contract manufacturer should operate in the USA at a cGMP-certified facility," says Tsuchibe. "Those that go the extra mile, like Soft Gel Technologies, will hold additional certifications, such as UL, NSF for Sport, and Health Canada, further demonstrating their commitment to high standards." 

Villalobos also recommends having a clear definition of what quality means to your company. "In advising brands who are searching for a quality contract manufacturing partner, my first recommendation is to understand and define quality for your brand. What does quality mean for you? One potential definition is the quality in manufacturing that ensures compliance for meeting government regulations. This is crucial for anyone who wants to run a legitimate business in our industry and ensure government regulations are being followed to protect end users. Ask a manufacturer to show you their certifications. Brands must be informed of the types that exist and understand that not all certificates including cGMP certificates are from accredited organizations. A safe bet is NSF/ANSI 455-2. This certificate is the latest and the one required for Amazon’s new Dietary Supplement policies. There are other certifications such as UL (Underwriters Laboratory), USP (US Pharmacopeia), BSCG (Banned Substance Control Group), Informed Choice, as well as SSCI (Supplement Safety and Compliance Initiative). Some of these organizations do not provide a certificate but do provide guidelines that ensure compliance with 21 CFR 111 and 117 as well as ICH, Q7, WHO GACP. Brands need to have staff that is informed."

Another type of quality, Villalobos adds, is quality in workmanship which assures that your product looks, tastes, and performs the way you—the brand—desire. Every brand has its own vision, its own budget, its own way of communicating, and its own timeline. The brand needs to find a manufacturer it can work with in order to achieve the desired end, on time and on budget. You can achieve both types of quality through auditing and establishing clear specifications.

Also key: Understand the dynamics of your relationship with your contract manufacturer. Part of that dynamic includes accounting for room to grow as you build together. "Once you find a partner, my second recommendation is that a brand think in advance about how much time and money they are prepared to invest in order to bring your brand into alignment with your manufacturer," says Villalobos. "Of course, it would be nice if everything was perfect from day one, but a working relationship, like all relationships, can take some time for everyone to be on the same page. It’s common for there to be a hiccup as things get going. If the brand is young, perhaps there were things they didn’t build into their model, such as how many degrees off a label can be placed on a bottle and still be acceptable. When you bring that to the manufacturer’s attention, you want a company that has a system for Corrective and Preventative Actions (CAPA) that will guard against future issues. How a manufacturer listens and responds to your concerns is just as important—if not more—than the price point they quote you. If a brand is considering ending a relationship with a manufacturer, I’d recommend that a brand be prepared to do three runs with that manufacturer before making a decision to leave. I’ve seen brands that jump from manufacturer to manufacturer because they aren’t willing to take the time to create alignment, and all that jumping around is a drain of time and money."

Retailers: Considering Private Label?

Step into any local grocery or supplements store and you'll notice a growing trend, the number of private label offerings has increased. As WholeFoods magazine has reported, the "store brand phenomenon" is having on retailer's bottom line. Data shared by Circana, exclusively for the Private Label Manufacturers Association (PLMA), showed that from January through June of 2024, store brands hit an all-time high in both unit and dollar shares compared to the same time period in 2023. In mid June, unit market share was 22.9% and dollar market share was 20.4%. total store brand sales were $121 billion compared to $472 billion for national brand sales, and store brand dollar sales were up 2.3% compared to a gain of 1.1% for national brands. Unit sales made an even stronger case for store brands, increasing 2.5% while national brands dropped -0.8%.

Private label also gives you more flexibility, says Licata. "Private labels give your employees a focus when selling. Showing your product first reinforces the benefit of shopping at your store. Generally, especially in our situation, you pay less than national brands and deal directly with the manufacturer. Even having two different of your own labels in your store, can also expand your customer base. For example for one store we provide them with a 'high-end' private label selling only capsules, and another standard label for a full-line. They get the benefit of higher volume discounts and sell the high-end at a higher price than our standard suggested retail increasing their gross margin. In other words, private label gives you more flexibility."

Final Recommendations

We asked experts to share some quick, key takeaway facts to keep in mind as you navigate through your contract manufacturing/private label journey.

Private Label Advice from Paul Licata, Licata Enterprises: 

1. If you are just getting started, I recommend stocking at least 25 different SKUs of your private label. We have many stores that are timid and start with only 5 SKU’s thinking they will add as they go along... the vast majority are not in business anymore. If you aren’t confident - neither will your customer be!
2. Ensure you have two to three multiple vitamins and some of the basics in your brand; such as, C 1000, E 400, B Complex 50 or 100, Multiple Enzyme. Then add a variety of specialty items.
3. Be important to your supplier. While you may want to have more than one private label supplier, carrying a few SKUs from many suppliers and switching depending on who has the best price this month doesn’t make you a supplier favorite. On the other hand, if you carry many SKUs, add new products when introduced, when you ask your supplier for a special deal or other, we are more than happy to work with you.

Contract Manufacturing Advice from Ken Tsuchibe, Soft Gel Technologies, Inc.:

1. It’s equally important to choose a contract manufacturer equipped with the latest solid dosage form manufacturing technology. Modern equipment ensures consistent product quality, reduces turnaround times, minimizes contamination risks and dosing errors, and allows for product innovation. Soft Gel Technologies has invested millions of dollars in precision, state-of-the-art blending and encapsulation equipment, enabling us to consistently manufacture the finest softgels for our customers.
2. A quality contract manufacturer should conduct thorough testing at every stage of production to ensure that finished products are safe, effective, and meet all specifications. One of Soft Gel Technologies’ strongest attributes is our advanced chemical analytical laboratory, where highly trained chemists and technicians test incoming raw materials, perform in-process quality checks, and analyze final products for potency and quality.
3. The second key to finding the right contract manufacturer is choosing not just a production house, but a true partner. A full-service company goes beyond manufacturing to assist with every aspect of bringing a product to market, including formulation development, ingredient sourcing, packaging and distribution, research, and even marketing resources.