Pet Supplement Manufacturing: Solution Comparison Guide

What Does Pet Supplement Manufacturing Cost?

Pet supplement manufacturing is a complex industry with many variables that influence cost. The first thing to consider is what services are included in the item’s overall cost. Every manufacturer has a different standard service level, which can influence the bottom line. Standard services that are usually included in pet supplement manufacturing are:

•    Regulatory and compliance assistance

•    Export assistance

•    Testing

•    Research and development services

•    Artwork design services

This is just the beginning of the variables that determine cost. Other factors include:

•    Packaging type

•    Formula

•    Specific health claims

•    Manufacturing scale

Consider a business that wants a product marketed as GMO-free, all-organic, sourced from specific 100% American ingredients, and produced in a fully certified facility with a production methodology tested by a third-party agency. That product will be much more expensive than one that does not have those desired claims. 

The retail markup can be determined by the business plan crafted with a strong understanding of what customers are willing to pay for the product. This markup can commonly range from 30 to 50%, but it will depend on the structure of each company.

Next is a closer look at the three main factors influencing costs.

Generic ingredients can have the same quality as branded ones, but that’s not always true. Ask for solid scientific evidence that supports using more expensive materials if necessary. For example, organic ingredients are an added expense that may be needed to support brand claims. 

Along with using quality ingredients, companies can partner with manufacturers that offer a high-quality production process. Transparent quality control and quality assurance policies should uphold certification standards. 

Visit the facility for a customer audit and ask to see the manufacturing and quality documents. Business representatives should feel comfortable discussing cGMP compliance on the phone or during the tour.

Formulas

While certifications are vital to a pet supplement brand’s success, formulas can make or break a product. Many startups want to work with a manufacturer that offers different formulas and products, as market trends can vary in popularity over time.

Some pet supplement manufacturers will have an in-house formulation team providing research and development support for smaller retail partners. These formulas may include customization or provide the basis for white- or private-label products. 

Market research supports whether a business seeks a formula with a specific delivery method, such as soft chews or certain flavors. If the formula is not appealing to the pet and the animals refuse to consume it, it doesn’t matter how effective it is — pet owners won’t buy it.

More complex supplement formats will increase cost compared to simple powders with no flavor. Specific ingredients within formulas are also worthy of a cost-benefit analysis. Active ingredients may provide a longer shelf life, but sourcing may be challenging. It’s best to talk with the manufacturer to determine if their business model supports the long-term production of any supplement formula under consideration.

What Are The Essential Logistics Of Pet Supplement Production?

Cost is only the beginning for company owners interested in crafting partnerships with manufacturing companies. Flexibility regarding MOQs may be a priority, while in other cases, turnaround time may be more critical to the business’s objectives. 

What Are the Minimum Order Quantities for Pet Supplement Manufacturers?

MOQs, which again stand for minimum order quantity, are another consideration when choosing a pet supplement manufacturing partner. This is the measure for determining the capacity and scale at which a business can operate. It is the production run size, and MOQs are generally based on machinery capacity.

A facility’s production machinery needs a minimum amount of material, and the limiting factor will be the specific machine that needs the most material to run efficiently. For this reason, the MOQ may be expressed in weight, such as pounds or kilos, or in the number of units. 

More prominent manufacturers may have relationships with material sources that allow lower costs due to higher volume purchases. However, these lower production costs may result in less flexibility in MOQs. A higher number may be needed to maintain scale. Smaller manufacturers often offer more flexibility. 

Pet Tech Labs consistently offers lower minimum quantities for these formats. Speak with a specialist to learn more >>

Lower MOQs are usually more attractive to startups just entering the market for the first time. Business leaders will want a smaller production run to gather consumer feedback regarding pricing and formulation. Modest MOQs help grow brands.

For companies looking to get on the shelves of big box stores, large MOQs may not be a deciding variable. Direct-to-consumer brands, however, should investigate these numbers closely.

What Is the Turnaround Time for Manufacturing Pet Supplements?

Yet another determining issue when choosing a pet supplement manufacturer to work with is the time it will take from the first discussion with a sales representative to seeing the product on the shelf. This is known as the turnaround time or lead time. 

As company owners undertake competitive comparisons with pet supplement manufacturers, it’s a good idea to understand how realistic the turnaround claims are. Ask potential suppliers for specific examples to ensure they include the time for compliance and other certification requirements in their lead-time estimates.

Factors Influencing Turnaround Time

Materials play a significant role between final sign-offs and knowing the ready-to-ship date. The industry ranges from 6 to 15 weeks, but sourcing ingredients and packaging can extend that timeframe. Consider that each material and vendor will have its own lead time. If a necessary ingredient is unavailable, that turnaround time will increase dramatically.

Other factors that impact turnaround include:

Different Approaches to Minimizing Speed to Market

The fastest way to enter the market and reduce the lead time is to use private label or stock formulations, which will automatically limit or even eliminate the testing period. This option is desirable to business brands looking to enter a new market category and are interested in running a pilot program. This can ensure they reach their target customers.

Stocking programs, which are orders that manufacturers build using a forecast, can result in quick access and shorter lead time. It can take time to develop an optimum stocking program fully, so start early by collecting data that can be used in the future to minimize speed to market.

Another time consideration beyond lead time is the shelf life of the products in any given inventory. The manufacturer should be able to identify how long the product can be sold to maintain maximum quality and effectiveness. This helps when developing stocking programs—which create orders built on forecasts and then stock them for quick access—and creating marketing opportunities.

The included ingredients determine the shelf life of pet supplements and pet food, as different essential nutrients have different chemical stability over time.

There are regulations for shelf life; however, they are different in different countries, such as within the European Union and Japan. This information is outlined in detail within each certification, so companies should discuss shelf life with the manufacturer while keeping their business model in mind.

With all these logistical considerations, the most important thing to remember is to connect with your target audience. As you create a business strategy for pet supplements, it’s best to start with an in-depth understanding of your client base’s habits, pain points, and preferences before partnering with a manufacturer. This is how you’ll find the most success with your venture.

What Certifications Are Important For Pet Supplements?

Many pet owners look at the label to learn the product’s certifications from specific organizations. This is a shortcut to trustworthiness, and many companies won’t work with pet supplement manufacturers that do not have the proper certifications. 

Certifications demonstrate that the manufacturer’s production process is following applicable laws. Some certifications will also show information on certain ingredients, which some countries may limit. This small part of the label can be the most important — certifications show that the manufacturer is reputable.

The following are the main certifications used for pet supplements.

The National Animal Supplement Council is the most respected organization and is considered the gold standard for manufacturing facilities in the pet supplement industry. Companies with a NASC certification have been audited and held to the highest standards of the Certified Good Manufacturing Practices (cGMP).

Note that the cGMP regulations are enforced by the U.S. Food and Drug Administration (FDA). This certification demonstrates proper design, monitoring, and control of facilities.

Short for the Food Safety Modernization Act, the FSMA is a federal program that oversees the production of human and animal food processing. The Food and Drug Administration oversees the FSMA, and certification under this law shows a company’s commitment to food safety. Larger retailers often require this certification.

The certification known as SQF, or “Safe Quality Foods,” is often required for larger retailers. The Global Food Safety Initiative, a collaborative group of industry stakeholders, oversees this process. It demonstrates a company’s commitment to globally recognized standards.

The U.S. Department of Agriculture’s Animal & Plant Health Inspection Service inspects facilities that produce supplements for export, as this certification is necessary for sale in many international countries. A USDA/APHIS certification is also required for product registration to allow brands to export pet supplements.

Quality & Consistency Controls For Pet Supplement Manufacturing

Quality and consistency are crucial to success in all retail ventures. Customers expect the supplements to remain the same throughout the weeks and years. 

While all manufacturers have different approaches to managing quality and consistency, ensure any chosen partner has a dedicated team of scientists and experts to oversee the process from research to production. Everyone looking to enter or expand in the pet supplement marketplace needs to work with a manufacturer with a strong track record of proven effective products and the respect of veterinarians.

One way to research this is through online analysis of ratings and other ranking sites. Look at the companies the manufacturer already works with and their geographic range. Also, look for good standing for each advertised certification. 

Also, confirm that the manufacturer has a Certified Good Manufacturing Practices (cGMP) facility. cGMP standards are regulations upheld by the U.S. Food and Drug Administration. They ensure that the company has established quality management systems, obtains the appropriate quality raw materials, has excellent operating procedures, and maintains reliable testing laboratories.

These standards are frequently updated, so scientific standards and processing methods can be constantly improved to avoid contamination and errors and achieve the best results. 

Remember, reputation can come with years. Companies that have been in the industry for a long time usually stay in business for a good reason. As you interview potential suppliers, ask questions and see if they will share some of their hard-earned wisdom with you. This will demonstrate their credibility and commitment to helping you achieve your business goals.

How to Evaluate a Pet Supplement Manufacturer

Few things are as crucial to creating a viable, long-term business partnership with another company as customer service. Startup leaders must partner with companies that offer dedicated sales representatives who quickly respond to questions.

If a manufacturer doesn’t pick up the phone, there won’t be much to discuss in terms of cost, MOQs, or anything else in this guide. Many businesses seek transparent companies that want to build trust with their product offerings. If either side doesn’t feel supported at each step in the process, the partnership won’t last long.

The three main questions to answer are:

1.    Are they an NASC Preferred Supplier?

2.    Do they hold FSMA/SQF certification?

3.    Can they meet your goals?

Answering these questions will help company leaders make intelligent decisions about entering or expanding the company’s footprint in the growing pet supplement market. 

The dedicated sales representatives at Pet Tech Labs can answer questions, share expertise, and discuss your vision for the product, including ingredients, supplement type, and target price point. This exploration will help determine a scope of work and a quote — and whether a production partnership would be a good match.