Supplements Company

How Much Does It Cost To Start A Supplements Company? (In 2024)

Pat Walls

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Updated: October 5th, 2024

Looking to start a supplements company?

But curious about:

how much it costs to start a supplements company?
what are the typical supplements company startup costs?
or the actual cost of starting supplements companies?

Well, we have the data to prove it, supported by real supplements companies and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a supplements company?

Based on our data reported by actual supplements company founders, the average cost of starting a supplements company is between $500 and $1,000,000.

Additionally, our data shows that the the median startup costs for a supplements company are around $40K.

Remember, though, not all supplements companies are the same - and neither are people's budgets. It's important to distinguish between different levels or types of supplements companies

Real World Examples: How much does it cost to start a supplements company?

We asked real supplements company founders and business owners how much it actually cost to get started?

Here is what they said:

Ben Esgro

Founder of De Novo Nutrition ($20K/month)

"Since the beginning, the funding for the company has been through bootstrapping. In the beginning, I would use the income from my job at WIC to fund my supplies, but this quickly became less feasible with the volumes required for private manufacturing. My parents have invested during major growth phases to get us over the hump for things like packaging, but aside from that we have always just used our sales to reinvest in the company growth and development."

Ben Esgro is the founder of De Novo Nutrition, a dietary supplements business that started in 2011 and has grown to a multinational brand with employees in both the US and UK.

Read this case study

Read by 16,617 founders

Benjamin Hebert

Founder of Natural Stacks ($200K/month)

"In our first 100 days, we did over $100,000 in revenue which was a god-send because I think my bank account was very close to bouncing."

Benjamin Hebert is the founder of Natural Stacks, a supplement company specializing in brain health that was rapidly established and gained impressive traction in the market.

Read this case study

Read by 14,728 founders

Joe Johnson

Founder of VADE Nutrition ($500K/month)

"VADE was started by myself and Megan and our personal finances that we put 100% into starting the business and creating a product to sell to help innovate the industry."

Joe Johnson is the founder of VADE Nutrition, a dissolvable protein scoop business that recently struck a deal on Shark Tank and rapidly expanded its reach both online and in retail.

Read this case study

Read by 14,743 founders

Logan Christopher

Founder of Lost Empire Herbs ($320K/month)

"I don’t recall the exact details but it was probably less than 200 units for less than $1000 including shipping."

Logan Christopher is the co-founder of Lost Empire Herbs, an ecommerce business in the herbal supplement space.

Read this case study

Read by 15,964 founders

Patrick Sullivan Jr.

Founder of Jigsaw Health ($1M/month)

"We would spend $10,000/month to make $25,000/month in revenue. Next thing I know, we were spending $25,000 just to make $25,000 in revenue. And then, $50,000 to make the exact same $25,000. ROI dropped through the floor."

Patrick Sullivan Jr. is the co-founder of Jigsaw Health, a dietary supplement company started in 2005 that has grown 181% in the past 5 years, with 80% of revenue coming direct-to-consumer.

Read this case study

Read by 11,456 founders

Ronell Firouz

Founder of Pilly Labs ($5.5K/month)

"After 9 months of hard work bootstrapping and financing the entire business myself, I finally had a real business up and running."

Ronell is the founder of Pilly, a health and wellness company focused on all-natural, herbal-based supplements aimed at a modern demographic that recently started generating around $5K in revenue per month.

Read this case study

Read by 12,976 founders

Nick Bare

Founder of Bare Performance Nutrition ($3.5M/month)

"Many of these college students, and friends of mine, took out this $25K loan to buy new cars, take vacations, get engaged and married, but I decided that this would be my funding to launch my company."

Nick Bare is the founder of Bare Performance Nutrition, a sports nutrition and health supplement business that started in 2012 and is on track to do $6 Million in revenue for the year.

Read this case study

Read by 42,352 founders

Paul Sciortino

Founder of Ayo Supplements ($5K/month)

"My original funding plan was naive; find a few credit cards with 0% interest intro periods, combine that with some personal funds, and Ayo would be off and running. But my thinking was flawed and Ayo was crawling, not running along. I dug a little deeper into my savings and began to look elsewhere to secure some marketing dollars."

Paul Sciortino is the founder of Ayo Supplements, a matcha tea supplement business that has reached customers in over 100 cities across the country since its launch.

Read this case study

Read by 8,004 founders

Adam Wright

Founder of Human Tonik ($200K/month)

"My initial investment was $60k that mostly went into stock and I spent 6-months full time getting the brand off the ground. It helped that I could do most of the web development and setting up the eCommerce side of things, so this saved money and in some ways time."

Adam Wright is the founder of SuperGreen TONIK, a greens powder supplement business that started in 2019 and has seen significant growth and customer reorders in its second year.

Read this case study

Read by 15,936 founders

Nick Bey

Founder of Bey Moss ($100K/month)

"Our start-up costs were $200 for the wholesale sea moss we purchased which we sold all together for $2,000. We scaled the company for the first 6 months from just sales alone. Our costs for legalities came later down the road and have been under $10,000."

Nick Bey is the founder of Bey Moss, an e-commerce platform started in January 2020 that sells sea moss-infused health and beauty products.

Read this case study

Read by 30,082 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful supplements companies that you can learn from.

Starting a supplements company - what you should know:

Starting a supplements company can be an exciting venture, but it's crucial to understand the financial nuances involved.

Initial Product Development

The initial product development phase, including research, formulation, and testing, can range from $10,000 to $50,000. This stage is crucial, as working with experienced chemists and nutritionists will ensure your supplements are both effective and safe. Cutting corners here could lead to quality issues and potential regulatory problems down the line.

Manufacturing Costs

Manufacturing costs will vary greatly depending on the scale of production and the type of supplements you are producing. Small batch runs might cost around $2 to $5 per unit, whereas larger orders can reduce this cost to $1 to $2 per unit. Be aware that high-quality ingredients will naturally increase your per-unit cost but can set your product apart in a crowded market.

Compliance and Certification

Navigating the regulatory landscape is essential. Obtaining necessary certifications such as GMP (Good Manufacturing Practices) and NSF (National Sanitation Foundation) can cost between $5,000 to $20,000, depending on the complexity and scope of the certifications required. This investment is critical to ensure that your products meet industry standards and can legally be sold in your target markets.

Marketing and Branding

Building a strong brand is vital for attracting customers and driving sales. Initial branding, including logos, packaging design, and website creation, can cost between $5,000 to $15,000. Ongoing marketing expenses, such as social media campaigns, influencers, and advertising, can easily run from $1,000 to $10,000 per month, depending on the scale of your efforts and the channels you choose to focus on.

Inventory and Storage

Managing inventory and storage effectively can also influence costs. Warehousing fees might range from $1,000 to $5,000 monthly, depending on the volume of your product and the location of your storage facilities. Additionally, working with fulfillment centers can add costs but streamline operations, typically costing between $2 and $5 per order.

Distribution Channels

Choosing the right distribution channels can affect your overall profitability. Direct-to-consumer models may have lower immediate costs but can require significant investment in e-commerce platforms and customer service. Alternatively, partnering with retailers or online marketplaces often involves margins or fees ranging from 20% to 40% of the sales price per unit.

Understanding these costs and planning carefully can greatly influence the success and sustainability of your supplements company.

Potential Costs of Starting a Supplements Company

Starting a supplements company involves various costs that can be grouped into several key categories, including product development, manufacturing, regulatory compliance, marketing, and operations. Below is a detailed table outlining the potential costs.

Cost Category	Item/Description	Estimated Cost
Product Development	Research & Development Initial formulations and testing with a chemist/nutrition expert	$10,000 - $50,000
Legal & Regulatory	FDA Compliance Includes registration, safety assessments, and quality control	$5,000 - $20,000
	Labeling & Trademarking Ensuring labels meet FDA regulations, trademarking your brand	$1,500 - $5,000
Manufacturing	Production Costs Contract manufacturing fees for the first run of products	$20,000 - $100,000
	Minimum Order Quantities (MOQ) Often required by manufacturers	$10,000 - $50,000
Packaging	Package Design Design and production of packaging materials	$5,000 - $15,000
	Packaging Supplies Bottles, capsules, labels, seals, etc.	$3,000 - $10,000
Marketing & Sales	Website Development E-commerce site with payment gateway	$2,000 - $10,000
	Digital Marketing SEO, PPC, social media campaigns	$1,000 - $10,000/month
	Branding Costs Logo design, brand guidelines	$1,000 - $5,000
Operations	Hosting Fees Website hosting costs	$100 - $500/year
	Software Tools Inventory management, CRM, email marketing tools	$500 - $2,000/year
Human Resources	Salaries Initial hiring of essential staff	$50,000 - $150,000/year per employee
	Labor & Consultants Freelancers for specialized tasks such as legal advisory, financial consulting	$5,000 - $20,000
Miscellaneous	Insurance Liability insurance, business insurance	$1,000 - $5,000/year
	Office Space Leasing costs if operating with a physical office	$6,000 - $24,000/year
	Shipping & Logistics Warehousing, fulfillment, shipping fees	$5,000 - $20,000

This table details the multiple facets and ranges of costs one could potentially incur when starting a supplements company, helping to plan and budget effectively.

Part of

Starting A Supplements Company: Everything You Need To Know

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