What Does Pet Supplement Manufacturing Cost?

Many pet owners spend a significant portion of their pet budgets on joint supplements, probiotics, vitamins, and other pet supplements. These products aim to support animals’ health and overall well-being. 

Brands and retailers can use this trend by offering private label pet supplements in pre-made formulas. Pre-made formulas allow businesses to skip the research and development phase and get their products to market faster. Companies can also create custom formulas either from scratch or by modifying existing private-label products, giving them more freedom but also more expenses. 

This article breaks down the pet supplement manufacturing cost for both types of formulas. This information can help you determine which method to use as you start or grow your pet supplement business. 

Understanding the Cost Breakdown

Pet supplement manufacturing expenses vary drastically, even for similar products. Here are a few factors that will influence your costs. 

Ingredients

The quality and type of ingredients used in pet supplements can lead to significant price variations. Organic ingredients typically cost more than non-organic ones but may be higher quality. You’ll also have to pay more for standardized extracts because the supplier guarantees that they contain specific levels of active ingredients. Private-label pet supplement manufacturers typically buy ingredients in bulk, reducing costs. 

Dosage Form

Pet supplements come in various formats, including capsules, chews, powders, and liquids. Manufacturers use different production processes and materials for each type, leading to considerable cost variations. 

Here are the basic manufacturing processes for common supplement formats: 

• Capsules: Liquid or powder supplements are enclosed in a gelatin or vegetarian shell 
• Powders: Dry ingredients are crushed and mixed 
• Chews: Dry and liquid ingredients are blended, poured into molds, and baked or dried 
• Liquids: The manufacturer blends active and inactive liquid ingredients and measures the liquid into containers 

Liquid supplements tend to be more expensive to produce than solids like capsules and powders. 

Minimum Order Quantity

Minimum Order Quantity (or MOQ) is the smallest-sized order that can be placed with a vendor or supplier. Often the MOQ is also the "order multiple". For example, if the MOQ is 1,000 lbs, the order multiple may also be 1,000 lbs. This means any order placed with this vendor must be in 1,000 lb increments. It is important to learn both the MOQ and the order multiple from your vendors and suppliers to plan out your costs. 

MOQs vary widely according to product type, manufacturing process, and ingredients. Manufacturers consider the volume of the "limiting factor". The limiting factor may be the size of the machinery, the volume of a specific ingredient needed, or something unique to the facilities. MOQ is most often a combination of these factors, calculated by the operations teams, to determine the smallest production run size that will still meet their efficiency KPIs.  

What if the MOQ is too high for me? 

Stock formulations, private label options, and other special programs may be offered by a manufacturer to give clients avenues for market entry with lower MOQs. In addition to lower MOQs, leveraging any of these programs can allow for speed to market - a benefit that should be considered. Pet Tech Labs offers competitively low minimums and makes it easy to find options that work for you.

Custom Formulas vs. Private Label Formulas

Custom formulas are typically the most expensive option for pet supplements. Manufacturers produce these unique formulas from scratch or modify an existing formula according to client specifications. The client pays a higher fee that covers every step of this process, including:

• Research and development
• Ingredient sourcing
• Prototyping
• Testing
• Improving the formula
• Production
• Quality control

Additionally, custom formulas often use specialized or unique ingredients that manufacturers need to buy in bulk. As a result, these products typically have higher minimum order quantities. 

Supplement brands and retailers can save money by partnering with a manufacturer who has pre-made, private-label formulas. This process is much quicker and less expensive than developing an original product. 

Additional Cost Considerations

Pet supplement brands must pay for additional expenses beyond manufacturing costs, including: 

• Packaging: Each supplement format has different packaging requirements. For instance, manufacturers typically package liquid supplements in plastic or glass bottles, while tablets can come in bottles or blister packs. The costs for this packaging can vary significantly by style and material. 
  
  
• Labeling: All pet supplements must include a label that lists ingredients, dosage, and other essential information. The complexity of the design and the printing methods can influence the cost. 
  
  
• Testing and Certifications: Brands can opt for third-party testing and certifications from the National Animal Supplement Council and other organizations. This step adds to the cost but boosts your brand’s credibility, which could drive sales. 

The Value Beyond Cost

Cost is important for many brands, but choosing a reputable manufacturer is essential. Thoroughly research supplement manufacturers to ensure they follow strict quality control measures and have the right expertise. That way, you can feel confident they'll product high-quality products that protect pet health and grow your brand reputation.

Getting an Accurate Quote

Manufacturers consider several factors when estimating the price, including: 

• Type of formula 
• Desired ingredients and dosages
• Preferred format (capsule, chew, liquid, etc.) 
• Packaging and labeling needs
• Order quantities, including desired minimum order quantities
• Packaging and shipping requirements 

The private label pet supplement process is complex and has many variable costs. The best practice is to consult a qualified, reputable manufacturer like Pet Tech Labs to discuss your requirements and get an accurate quote.