The Dynamic Value Chain Of Ingredients Needs Constant Stimulation


Nutraceuticals are the result of the convergence of nutrition and medicines. At the same time, cosmeceuticals are the result of the convergence of cosmetics and pharmaceuticals. They are combining nutritional supplements with conventional beauty products resulting in nutricosmetics. Natural cosmetics, nutricosmetics, and nutraceuticals have comparable or the same ingredients. To name a few, goods include omega-3 fatty acids and carotenoids (including lycopene, beta carotene, and astaxanthin). More products are vitamins (retinoids, ascorbic acid, tocopherols), collagen-peptides, CoQ10, green tea extracts, phytosterols, and fruit extracts.

Suppose you want better to understand the behavior of a complicated supply chain and make more informed management choices. You may do it with the help of dynamic simulation software like GoldSim.

Ingredient Suppliers:

Suppliers of raw materials (proteins, peptides, retinoids, botanicals, etc.) for cosmetic and nutraceutical producers to create the end-products make up the initial step of the value chain. Sometimes, suppliers are manufacturers or brand owners. And other times, they are independent research labs.

Ingredient Distributors:

For contract manufacturers and manufacturers that also control the brands. Ingredient distributors serve as marketing intermediates in addition to distributing raw ingredients. To further their marketing and sales efforts and break into new markets. Some ingredient producers shop in certain nations or areas and work with local distributors there.

Formulated Product Manufacturers:

Manufacturers/brand owners create and produce the final goods (tablets, capsules, syrups, liquids, creams, lotions, etc.). It gets done by incorporating nutraceutical, cosmeceutical, and nutricosmetic components. Contract manufacturing organizations (CMOs) and independent formulators (IFs) may also get involved. They not only make the final product but also finish the secondary. They do enticing packaging and tertiary transportable packaging.

Healthcare Products Wholesalers:

Distributors of pharmaceuticals and nutraceuticals buy completed and packaged goods in bulk from manufacturers. They may carry all of a company’s goods, such as nutraceuticals and botanicals, or only a select handful. As requested, they resell these items to shops (pharmacies, supermarkets, health food stores, spas, internet merchants, beauty salons, etc.) for a profit.

Pharmacies/ Retailers:

The semi-final step of the value chain comprises the stocking on retail shelves. And selling the cosmeceutical and nutricosmetic finished goods to customers. Retailers include drugstores, supermarkets, health food stores, spas, internet shops, beauty salons, and more. Consumers now often use a variety of different channels to buy goods. It includes specialized health product websites, Amazon, and manufacturer websites.

End-users/ Consumers:

There are various distribution channels (pharmacies, supermarkets, natural and health & wellness stores, spas, online stores, beauty salons, etc.). As well as general online ordering websites (like Amazon) and manufacturer websites are available. This is for consumers who wish to buy and use nutraceutical, cosmeceutical, or nutricosmetic products.


Strategic marketing consultants at 7P Associates ( can assist with future business growth plans. We are across one or more areas of the value chain of ingredients and formulated products. We include supply chain and value chain analyses and strategies. Such as contract manufacturing, partnerships, acquisitions, technology, and product diversification. And opportunity analysis if you fall into one of the value chain entities listed above.

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