By Lauren Samot, Registered Dietitian, Commercial Innovation Leader at Vitaquest

The term nutraceutical was coined in the 1990s by Dr. Stephen DeFelice, who defined it as “any substance that is a food or a part of a food and provides health benefits.”  

A nutraceutical ingredient can include vitamins, minerals, herbs, or virtually any active ingredient found in dietary supplements. Clearly, this is a huge and growing category! How huge? In 2024, the estimated value of the nutraceutical market was $418.2 billion, and it is projected to reach $517.3 billion by 2029, a compounded annual growth rate (CAGR) of 6.4%.ⁱ 

How many nutraceutical ingredients are there? Hundreds? Thousands? The exact number is hard to pinpoint, but there are certainly plenty. With such a vast selection, formulating a dietary supplement can feel overwhelming—especially when the possibilities seem endless. One thing you can do to help narrow the playing field is to limit some of your options to branded ingredients. 

What is Ingredient Branding?  
Ingredient branding is a strategy that creates a distinct brand identity for a specific ingredient. This approach serves two key purposes: 

1. Differentiation and Trust – Establishing a recognizable brand helps highlight the ingredient’s quality and reputation, fostering consumer confidence. 
2. Scientific Validation – A branded ingredient often comes with research-backed claims, reinforcing its efficacy and safety. 

Most branded ingredients are trademarked, and some are even patented ingredients. Being trademarked (and possibly patented) implies a long-term commitment to the brand’s success. Additionally, consumers often associate trademarks with higher quality, reinforcing trust and credibility in the ingredient. 

Some of the key benefits of using branded ingredients include: 

• Featured on the product label – Showcasing the branded ingredient on your product label allows you to leverage existing consumer brand awareness, benefiting from the marketing efforts already invested by the ingredient supplier. 
• Scientifically validated efficacy and safety – Branded ingredients often have studies that allow you to make substantiated structure/function claims when you use the clinically validated dose. 
• Standardization in quality and purity control – Branded ingredients (especially herbal ingredients) are often standardized for marker compounds. This ensures consistent potency and quality, helping to deliver the intended benefits. 
• Unique selling propositions and differentiation – Incorporating branded ingredients helps set your product apart from competitors using generic ingredients. The scientific substantiation, and ability to support structure/function claims enhance credibility, build consumer confidence and strengthen your brand. 

Branded Ingredients vs Generic Ingredients  
As a brand owner, you’ll have to make the decision on whether to use branded ingredients versus generic ingredients. You may even choose to use a combination of both based upon the product being formulated.  

The following are some features differentiating the value of branded ingredients compared to generic ingredients. 

• Branded Ingredients: 
  • Backed by scientific research – The use of structure/function claims is predicated upon scientific research to support those claims. Since branded ingredients generally have the necessary studies backing them, claim support becomes a much simpler and less risky task. 
  • Offer higher quality and trust – As a society, we tend to trust branded products more—whether it’s prepared foods, laundry detergents, or dietary supplements. Similarly, incorporating branded ingredients into your products can help build consumer confidence and trust. 
  • Higher cost – The only real downside to using branded ingredients is they tend to cost more than their generic counterparts due to the investment required for their development, research, and marketing. Nevertheless, 68% of consumers indicated they will pay more for products that contain only recognizable (branded) ingredients.ⁱⁱ 

• Generic Ingredients: 
  • Not always backed by scientific research – This makes it much harder to substantiate structure/function claims and remain compliant with regulations. 
  • Multiple vendors – It is fairly easy to find a given generic ingredient at multiple vendors. This is both an advantage and disadvantage. It is an advantage since you can shop around to find the one that offers the best prices. It is a disadvantage if you change vendors since the ingredient may look different, have varying levels of quality, and have different physical properties, all of which make it more difficult to use it as an alternative source in your existing product. 
• More affordable – This is the only meaningful advantage that generic ingredients offer over branded ingredients. 

Benefits of Using Branded Ingredients  
In addition to those already mentioned, there are some additional benefits associated with the use of branded ingredients: 

• Streamlined marketing – Branded ingredients often come with a list of established structure/function claims, many of which may have already been reviewed by legal counsel for regulatory compliance. Furthermore, those claims have previously been communicated to consumers and retailers alike, making it easier for you to convey messaging on your label and/or as part of your own marketing efforts. 
• Reduced risk – Branded ingredients typically offer higher quality than generic alternatives, reducing the likelihood of product quality issues or counterfeiting concerns. 
• Unique functionalities and targeted benefits – Many branded ingredients offer unique functionalities such as delivery systems for improved bioavailability and/or improved dissolution or blending advantages. Such unique functionalities may also be accompanied by targeted benefits such as, “Improves bioavailability by X%”. 

Choosing the Right Branded Ingredients for Your Supplements 
When selecting from the wide range of branded ingredients, it’s crucial to consider several factors that make certain ingredients the right fit for your brand. These may include: 

• Brand values and target audience – Does the ingredient align with your brand values? For example, if yours is a “clean label” brand, is the ingredient consistent with this? Will it resonate with your target audience? 
• Scientific evidence and clinical research data – While many branded ingredients are backed by scientific research supporting their claims, not all are. Before investing in a branded ingredient, ensure it offers something truly unique that adds value to your product line. 
• Regulatory compliance and safety profile – Is the branded ingredient you are considering lawful for use in dietary supplements? Is it a new dietary ingredient (NDI), old dietary ingredient (ODI) or generally recognized as safe (GRAS)? If not, stay clear. Also, does it have a good safety profile. Is it in compliance with acceptable microbiological and heavy metal ranges? 
• Dosage recommendations – Will your product be able to accommodate the science-based dosage recommendations of the branded ingredient in question? If the clinically relevant dose is 3 grams, but you want your serving size to be two capsules, then this isn’t an option that will work for you. 
• Supplier reputation – Does the supplier providing the branded ingredient have a good reputation? Have they run afoul of the FDA in the past? Do they have transparency (e.g., they provide the species of the plant being used to yield the ingredient)? 
• Cost-effectiveness – Although branded ingredients offer meaningful benefits over generic ingredients, you still need to make sure that your ingredient of choice is cost-effective. Branded ingredients differ greatly in cost, and some of them may be cost prohibitive for a given target audience. Make sure to understand the competitive market landscape before choosing a branded ingredient. 
• Transparency – When communicating scientific evidence about a branded ingredient to consumers, it is important to do so with transparency. Provide the information in a responsible way and do not overstate the benefits. Most of all, communicate the information in compliance with the regulations laid out in the Dietary Supplement Health and Education Act of 1994. 
• Supplier relationships – Likewise, it is important to establish clear communication with the suppliers of branded ingredients. Make sure to request information on any trademark licensing agreements, and to be forthcoming about realistic sale projections. Building a strong relationship with suppliers will benefit both parties. 

How do Regulations Affect the Use of Branded Ingredients 
While there are no specific regulations related to ingredient branding, the FDA and FTC have guidelines governing label and advertising claims about ingredients used in dietary supplements. If you are not aware of those regulations check out this free resource from the FTC, Dietary Supplements: An Advertising Guide for Industry. 

Additionally, ensure you don’t infringe on any existing trademarks or patents. Many vendors of branded ingredients require the marketer to sign an end user licensing agreement and to adhere to labeling policies regarding the use of logos and attribution of their intellectual property. Specifically, avoid making claims tied to branded ingredients if you’re using generic alternatives, as this could lead to legal issues. 

Communicating the Value of Branded Ingredients  
If you choose to use branded ingredients, you can effectively communicate their value proposition to consumers by leveraging materials provided by the ingredient vendor. These may include sales brochures, promotional videos highlighting the benefits of the branded ingredients, logos, and customized graphics (e.g., infographics) that summarize key advantages.

You can share these resources on your website and across social media channels. Consistently doing so will help build trust and transparency. Focus on educating consumers about the unique benefits and features of the branded ingredients, while ensuring all claims stay within regulatory guidelines. 

Concluding Thoughts About Branded Ingredients 
This article defined branded ingredients, highlighted the difference between branded and generic ingredients, discussed the benefits of using branded ingredients, and provided guidelines for selecting the right ones for your supplements. It also covered relevant regulations and strategies for effectively communicating the value of branded ingredients. 

Vitaquest is a contract development and manufacturing organization (CDMO) that has provided supplement brands with exceptional supplement research and development, manufacturing, packaging design, powder and particle engineering services using fluid bed, oscillation, and roller compaction technologies, and fulfilment solutions for over 45 years. 

Whether you’re a newcomer to the industry or aiming to diversify your product range, Vitaquest possesses the expertise, cutting-edge facilities, and solutions needed to swiftly and effectively turn your supplement concept into reality, with a focus on the value of branded ingredients. Vitaquest offers a variety of dosage forms, including capsules, tablets, chewable tablets, oral disintegrating tablets (OTD), effervescents and powders. Furthermore, you’ll receive an exceptional level of customer support.  

Vitaquest brings expertise in both domestic and international regulatory standards, along with a strong commitment to sustainability. By sourcing sustainable ingredients and using eco-friendly manufacturing processes, we enhance brand appeal. Our FDA cGMP compliance, along with third-party GMP certifications from NSF, USP, and others, assures both brand owners and consumers that we meet rigorous industry regulations and standards. Additionally, our ability to offer Kosher, Halal, and certified organic products, as well as our FSSC 22000 certification for food safety, further demonstrates our dedication to manufacturing excellence.

Are you ready to take advantage of the growing consumer demand for nutraceuticals formulated with branded ingredients? If so, call 800-526-9095 to speak with one of our knowledgeable sales executives or request a nutraceutical manufacturing price quote if you’ve already finalized your project requirements!

Lauren Samot, RD, Commercial Innovation Leader
With over 7 years at Vitaquest, Lauren Samot’s journey from Technical Services Associate to her current role as Commercial Innovation Leader exemplifies her dedication and growth. Leading the innovation team, she fuels business expansion through collaborative efforts across sales, product development, and operations. With a decade-long career in nutraceuticals, Lauren excels in manufacturing, raw materials, and product development. A Vitaquest Proud Champion Award recipient, she holds a B.S. in Nutritional Science with a minor in Public Health from Boston University and is an accomplished Registered Dietitian and member of the Academy of Nutrition and Dietetics.