The global market for herbal and botanical products is rapidly expanding as consumers increasingly seek plant-based, sustainable, and health-based formulations. Products ranging from Ayurvedic supplements, botanical skin-care products, to herbal beverages are being innovated for quality and regulatory compliance. As the industry grows, several challenges accompany the transition from product development to large-scale manufacturing, especially for startup and small-to-medium enterprises (SMEs). Contract manufacturing provides a viable option to overcome key barriers by delivering expertise, compliance, scale, and cost efficiencies. Contract manufacturing can help address some of the time-to-market pressures associated with product launch timelines. [1]

Manufacturing Herbal and Botanical Products: Why Contract Manufacturing is the Ideal Route

Interesting News May 26, 2025

The global market for herbal and botanical products is rapidly expanding as consumers increasingly seek plant-based, sustainable, and health-based formulations. Products ranging from Ayurvedic supplements, botanical skin-care products, to herbal beverages are being innovated for quality and regulatory compliance. As the industry grows, several challenges accompany the transition from product development to large-scale manufacturing, especially for startup and small-to-medium enterprises (SMEs). Contract manufacturing provides a viable option to overcome key barriers by delivering expertise, compliance, scale, and cost efficiencies. Contract manufacturing can help address some of the time-to-market pressures associated with product launch timelines. [1]

Understanding Contract Manufacturing in Herbal and Botanical Product Development

Contract manufacturing to produce goods or products means utilizing an external organization, often a specialized contract manufacturer, which has the technical expertise, infrastructure, and regulatory knowledge to facilitate production. In the herbal space, this could mean partnering with a manufacturer that understands the use of raw plant-based materials, extraction processes, standardization protocols, and the necessary government regulatory bodies such as the FSSAI, AYUSH, WHO and international standards like Generally Recognized as Safe (GRAS).  [2]

What Herbal and Botanical Products Can Be Manufactured?

Manufacturing of herbal and botanical products encompasses a broad spectrum of categories, which include:

  • Nutraceutical Supplements: Capsules, tablets, powders, granules, and sachets that use specified herbal extracts to enhance immunity, digestion, or energy. Examples include Ashwagandha capsules and turmeric powders
Manufacturing Herbal and Botanical Products Why Contract Manufacturing is the Ideal Route-FRL
  • Cosmeceuticals: Herbal skincare and haircare products, such as creams, lotions, serums, oils, and shampoos that contain botanical actives (e.g., Aloe vera and neem).
  • Functional Foods and Beverages: Snacks fortified with botanicals, protein bars, herbal teas, wellness shots, and ready to drink beverages that utilize botanicals (e.g., moringa and tulsi).
  • Ayurvedic and Traditional Remedies: Powders, decoctions, tablets, and liquid extracts prepared from traditional classical herbal recipes.
  • Animal and Pet Nutrition: Supplements, treats, and specialty feeds that contain packaging of wax, tablet extract, and/or powder to support animal health that originate from naturally sourced botanicals.

Table 1: Categories of Herbal and Botanical Products – With Examples

Category

Example Products

Nutraceutical Supplements

Himalaya Ashwagandha Capsules – used for stress relief and stamina enhancement

Cosmeceuticals

Biotique Bio Morning Nectar Lotion – Ayurvedic moisturiser with honey & wheatgerm

Functional Foods & Beverages

Organic India Tulsi Green Tea – antioxidant-rich herbal infusion

Ayurvedic & Traditional Remedies

Dabur Chyawanprash – herbal immunity paste made from 40+ botanicals

Animal & Pet Nutrition

Himalaya Healthy Pet Food – fortified with herbs like ashwagandha and guduchi

Forms of Herbal and Botanical Products in Contract Manufacturing

Contract manufacturers support a wide range of product forms, including:

  • Solid Dosage Forms: Tablets, capsules, granules, powders and sachets, which require a precise blending, compression, coating, and/or encapsulation process.
  • Semi-Solids: Creams, lotions, ointments, gels and balms, usually a preparation for herbal cosmeceuticals, in which emulsification and preservation technologies are commonplace.
  • Liquids: Syrups, decoctions, tonics and liquid extracts, which require processing steps involving controlled extraction, filtration, and aseptic filling.
  • Beverages: Ready-to-drink herbal teas, wellness shots, and fortified drinks, requiring preservation and packaging solutions to ensure stability on shelf.
  • Powdered Blends and Mixes: Powdered blends that have been uniformly blended for use in supplements or functional foods.
  • Animal Feed and Treats: Pellets, powders or treats, often specially formulated as supplements for pets. [3]

Table 2: Forms of Herbal and Botanical Products in Contract Manufacturing – With Examples

Form

Example Products

Solid Dosage Forms

Patanjali Giloy Ghanvati Tablets – herbal immunity booster in tablet form

Semi-Solids

Forest Essentials Sandalwood & Turmeric Cream – herbal face cream

Liquids

Zandu Pancharishta Syrup – digestive tonic made with 35 herbs

Beverages

Kapiva Amla Juice – cold-pressed drink to boost vitamin C intake

Powdered Blends

Just Jaivik Triphala Powder – used for digestion and detox

Animal Feed and Treats

Drools Herbal Digestive Biscuits – enriched with fennel and mint for dogs

Advantages of Contract Manufacturing for Herbal Products

  1. Technical Expertise & Regulatory Compliance
    Herbal product manufacturing is more complex than dietary supplement due to raw material variability and extraction. Contract manufacturers bring expertise in phytochemical standardization, stability testing, and compliance with FSSAI, AYUSH, USFDA and more.
  2. Scalable Pilot & Commercial Production
    GMP-compliant pilot plants with advanced equipment (e.g., encapsulated unit and clean rooms) ensure a smooth transition from pilot to commercial batches minimizing quality risks.
  3. Cost Efficiency & Resource Optimization
    Setting up a compliance herbal facility requires a high capital. Contract manufacturers pay per batch model lower fixed costs and ensure faster timeline through certified raw material supply chain.
  4. Flexibility & Focus on Core Competencies
    Brands can focus on R&D, marketing, while manufacturer offers batch size flexibility and adaptable schedules to meet market demands. [4]

Challenges in Contract Manufacturing of Herbal and Botanical Products

Contract manufacturing offers the benefits mentioned above, but it also comes with challenges relating to:

  1. Raw Material Variability & Quality Control
    Variability from growing condition and harvest requires strict sourcing, botanical ID, COAs, and audits to ensure consistency.
  2. Standardization of Botanical Extracts
    Quantifying actives (e.g., curcumin in turmeric) using techniques like HPLC is essential for quality assurance.
  3. Complex Extraction & Formulation
    Solvent and supercritical extraction must retain bioactivity. Final formulation needs expertise in emulsification, encapsulation, and preservation.
  4. Regulatory Compliance Across Jurisdictions
    With diverse global standards (FSSAI, AYUSH, FDA, EMA, WHO), contract manufacturers must ensure accurate documentation, labelling and safety compliance.
  5. Stability & Shelf-Life
    Herbal actives degrade with light, moisture, heat, and oxidation. Stability testing and appropriate packaging preserve product efficacy.
  6. IP Protection & Confidentiality
    Strict NDAs and secure practices protect proprietary formulations during manufacturing.
  7. Scale-Up & Process Validation
    Scale up can cause quality shifts. Manufacturers validate process to ensure consistency and maintain botanical integrity. [5] [6]

Selecting the Right Contract Manufacturing Partner

Brands should assess potential partners based upon:

  • Regulatory knowledge or experience in related FSSAI, AYUSH, USFDA, and global standards.
  • Infrastructure that has GMP compliant pilot and commercial facilities.
  • Supply networks with credible botanicals with CoA.
  • Documentation capabilities for SOPs, batch records and stability documentation.
  • Technical capability or support and flexibility to optimize formulation and production.

Conclusion

Contract manufacturing offers a pragmatic and efficient method of developing herbal and botanical products. In this way, brands benefit from reduced operational challenges, increased regulatory compliance, and lower subsequent costs to scale. Whether a manufacturer is producing capsules, creams or beverages, the direct the brand with an appropriate contract manufacturer will de-risk the process, promote speed to market, and free the brand to focus on the most valuable activities of innovation and growth. Ultimately, through contract manufacturing, both start-up and established brands can be guaranteed the most efficient track from formulation to commercialization in the demanding sector of herbal products.